Actions taken by the addressees in order to implement the recommendations issued by the NCMO 2017 – 2018

The recommendation was implemented by the NBR Order No. 12/2015 on the capital conservation buffer and the countercyclical capital buffer (published in Monitorul Oficial, Part I, No. 980/30.12.2015).

The Recommendation was implemented by issuing the NCMO Decision No. D/8/2018 on identification of significant third countries for the Romanian banking sector in terms of recognition and setting of countercyclical capital buffer rates, stating that for the year 2018 no significant third countries were identified for the Romanian banking sector in terms of recognition and setting the countercyclical capital buffer.

The National Bank of Romania and the Financial Supervisory Authority implemented the NCMO recommendation by developing and conducting a questionnaire on real estate and commercial real estate markets in Romania, which was sent to: 1) credit institutions in Romania having an important role in the real estate sector; 2) non-financial companies participating directly or indirectly in the Romanian real estate market (77 companies); (3) insurance companies, pension and investment funds.

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The results of the questionnaire were published in the June 2018 edition of the Financial Stability Report (which was published on the NBR website FSR 2018

The recommendation was implemented by the NBR Order No. 12/2015 on the capital conservation buffer and the countercyclical capital buffer (published in Monitorul Oficial, Part I, No. 980/30.12.2015).

The recommendation was implemented by the NBR Order No.12/9/2017 on the buffer for credit institutions authorised in Romania and identified by the National Bank of Romania as other systemically important institutions (O-SII) (published in Monitorul Oficial, Part I, No. 1009/20.12.2017).

The Working Group on financial health of companies was established, consisting of representatives of the Government (through the Ministry of Public Finances) and the NBR, with the participation of the ASF as an observer. A Working Plan of the inter-institutional group within the NCMO was established; the analyses elaborated by the group were discussed at NCMO meetings on 26 February 2018 and 21 May 2018.

The Recommendation was implemented by issuing the NCMO Recommendation No. R/2/2018 on implementing some measures related to firms’ financial soundness, addressed to the Government.

The Working Group on over-indebtedness of households was established, consisting of representatives of the Government (through the Ministry of Public Finances) and the NBR, with the participation of the FSA as an observer. A Working Plan of the inter-institutional group within the NCMO was established; the analyses elaborated by the group were discussed at NCMO meetings on 18 December 2017, 26 February 2018 and 21 May 2018.

The Recommendation was implemented by: (i) issuing the NCMO Recommendation No. R/1/2018 on recalibrating the “First Home” Program, addressed to the Government; (ii) the issuance of the NBR Regulation No. 6/2018 for amending and supplementing the NBR Regulation No. 17/2012 on certain credit conditions (published in the Monitorul Oficial, Part I, No. 950 of 09.11.2018).

The recommendation was implemented by the NBR Order No. 12/2015 on the capital conservation buffer and the countercyclical capital buffer (published in Monitorul Oficial, Part I, No. 980/30.12.2015).

The recommendation was implemented by the NBR Order No. 4/2018 on the systemic risk buffer (published in Monitorul Oficial, Part I, No. 433/22.05.2018).

The Recommendation was implemented for 2018. The NBR reassessed the impact of the credit institutions’ financing plans on credit flow to the real economy based on December 2017 reports, which includes the estimates of credit institutions for June 2018 – December 2020 horizon The results of the analysis conducted by the NBR from the perspective of macro-prudential policy were presented, for information, in the NCMO General Council meeting on December 17, 2018.

The Recommendation can be considered to be finalized according to the strategy of “First Home” Program endorsed at the end of 2016; hence, two years after the Strategy’s approval (i.e. in 2019), the Ministry of Public Finances will undertake an analysis of the Program, which will aim at better targeting the “First Home” Program from a social perspective.

The Memorandum on “Measures/proposals to improve the regulatory framework for the sector of non-financial companies in order to reduce the phenomenon of disinvestment of firms” was elaborated, which was approved by the Government in its meeting of October 4, 2018.

The recommendation was implemented by the NBR Order No. 12/2015 on the capital conservation buffer and the countercyclical capital buffer (published in Monitorul Oficial, Part I, No. 980/30.12.2015).

The National Bank of Romania (NBR) carries out periodic analyses on the risks and vulnerabilities identified at the level of the financial system and of the real economy, as well as the opportunity to implement macro-prudential instruments. To date, the NBR has implemented the following macro-prudential instruments: the capital conservation buffer; the counter-cyclical capital buffer (CCB); the buffer for other systemically important institutions (O-SII buffer); the systemic risk buffer (SRB); requirements regarding the loan to value ratio (LTV); requirements regarding the debt service to income ratio (DSTI).

The Financial Supervisory Authority (FSA) performs periodic analyses on the risks and vulnerabilities identified at the level of the three non-bank financial markets in its supervisory area, as well as the opportunity to implement the regulated macro-prudential instruments. So far, the following macro-prudential measures have been implemented:

(i) at the level of firms for financial investment services: the capital conservation buffer (which was implemented in 4 annual equal rates of 0.625% of the total risk-weighted exposure amount during the period from 1 January 2016 to 1 January 2019);
(ii) in the case of insurance companies: the liquidity index of the insurance undertakings; the recovery plan;
(iii) in the case of private pension market: restrictions on significant exposures;
(iv) in the case of administrators of private pension funds: limiting the exposure to an issuer to 5% of the net asset; the exposure to a group of issuers and their affiliated persons may not exceed 10% of the assets of the private pension fund;
(v) for all entities under the supervision of FSA: requirements regarding the IT system security.

The recommendation was implemented by the NBR Order No. 12/2015 on the capital conservation buffer and the countercyclical capital buffer, published in Monitorul Oficial, Part I, No. 980/30.12.2015.

The recommendation was implemented by the NBR Order No. 9/2018 on the buffer for credit institutions authorised in Romania and identified as other systemically important institutions (O-SII).

The recommendation was implemented by the NBR Order No.8/2018 on the systemic risk buffer (published in Monitorul Oficial, Part I, No. 1031/05.12.2018).