Price stability through a stable monetary environment facilitates the smooth functioning of financial markets and overlaps with that of financial stability. Currently NBM doesn’t have a well legally defined role in maintaining financial stability, but has tasks in this field through regulation and prudential supervision of the banking sector, oversight of payment systems, providing liquidity as a lender of last resort for banks, in exceptional cases of course. With this publication we aim to analyse the legal and regulatory framework that governs financial stability and banking supervision in Moldova and create insights and solutions to improve them. In the context of current issues related to the critical situation in the banking sector in Moldova, including the loss of NBM credibility among the population and the foreign development partners of Moldova, it is imposed the development of the oversight function, which should be an objective of strategic importance to NBM in the coming years.