Annex of Recommendations

Annex to NCMO Recommendation No. R/4/2018 on implementing macroprudential instruments for achieving the intermediate objectives included in the Overall Macroprudential Strategy Framework of the National Committee for Macroprudential Oversight

Intermediate objectives Macroprudential instruments The authority responsible for implementing the macroprudential instruments at the level of financial institutions
A. Mitigate and prevent excessive credit growth and leverage Countercyclical capital buffer (CCB) NBR, FSA
Sectoral capital requirements (including intra-financial system) NBR
Macroprudential leverage ratio NBR, FSA
Loan-to-value requirements NBR
Loan-to-income and debt service-to-income requirements NBR
The capital conservation buffer FSA
B. Mitigate and prevent excessive maturity mismatch and market illiquidity Macroprudential adjustment of liquidity ratio (e.g. liquidity coverage ratio) NBR, FSA
Macroprudential restrictions on funding sources (e.g. net stable funding ratio) NBR
Macroprudential unweighted limit to less stable funding (e.g. loan-to-deposit ratio) NBR
Margin and haircut requirements NBR
C. Limit direct and indirect exposure concentration Large exposure restrictions NBR, FSA
Requirement for clearing through central counterparties NBR
D. Limit the systemic impact of misaligned incentives with a view to reducing moral hazard Capital surcharges for systemically important financial institutions NBR, FSA
E. Strengthen the resilience of financial infrastructures Margin and haircut requirements for clearing through central counterparties NBR, FSA
Increased disclosure NBR, FSA
Structural systemic risk buffer NBR, FSA
F. Increase financial intermediation in a sustainable manner Improved expertise of bank staff involved in lending NBR
Greater dissemination of statistical data NBR
Bringing into local banks’ loan portfolio the higher quality sold loans and the loans granted directly by non-resident banks to non-financial corporations in Romania NBR
G. Increase financial inclusion Provision of payment services at prices adequate to both market conditions in Romania and the needs of consumers that do not benefit from financial services NBR
Greater dissemination of information NBR
H. Protect the insurance system against the consequences of the insolvency of some insurers Resolution plans FSA
Resolution mechanism FSA
Guarantee funds FSA
I. Mitigate the negative impact of operational risks generated by the use of ICT Action plan on the remedial measures for vulnerabilities identified during the IT audit FSA