The NCMO meeting of 11 September 2019
The General Board of the National Committee for Macroprudential Oversight (NCMO) convened on 11 September 2019 for its fourth meeting this year. During the meeting, Board members discussed issues focusing on macroprudential policy such as: (i) the regular analysis on the recalibration of the countercyclical capital buffer, (ii) the manner of implementing the capital buffer for other systemically important institutions in the course of 2020, and (iii) the regular analysis on the implementation of the systemic risk buffer. On this occasion, the NCMO General Board was also informed of the systemic risks identified in the national financial system.
Following the discussions, the macroprudential policy measures below were approved:
- NCMO Recommendation No. R/3/2019 on the countercyclical capital buffer in Romania– Considering that total indebtedness currently remains below the alert threshold and setting a countercyclical buffer rate above 0 (zero) percent is, thus, not necessary, the National Bank of Romania is recommended to maintain the countercyclical buffer rate at 0 percent and to closely monitor developments in structural imbalances and indebtedness at aggregate and sectoral levels. On the other hand, the further tensions surrounding macroeconomic equilibria could call for a future increase in the countercyclical buffer rate.
- NCMO Recommendation No. R/4/2019 on the capital buffer for other systemically important institutions in Romania – Pursuant to the national legal provisions and the methodology harmonised with the EBA Guidelines on the criteria to determine the conditions of application of Article 131(3) of Directive 2013/36/EU (CRD) in relation to the assessment of other systemically important institutions (O-SIIs), the National Bank of Romania is recommended to impose, starting 1 January 2020, a capital buffer for other systemically important institutions (O-SII buffer), on an individual or consolidated basis, as applicable, calculated based on the total risk exposure amount for all the credit institutions identified as having a systemic nature based on the data reported as at 31 December 2018. The O-SII buffer level for each systemic credit institution is to be published on the NCMO website by 1 December 2019, according to the European and national regulations in force.
The National Committee for Macroprudential Oversight was established by virtue of Law No. 12/2017 on the macroprudential oversight of the national financial system, thus ensuring that Recommendation of the European Systemic Risk Board (ESRB) No. 3/2011 on the macroprudential mandate of national authorities was implemented. The NCMO brings together representatives of the National Bank of Romania, the Financial Supervisory Authority and the Government of Romania. The NCMO’s mission is to ensure coordination in the field of macroprudential oversight of the national financial system by setting the macroprudential policy and the appropriate instruments for its implementation.