The NCMO meeting of 14 December 2023
This year’s fourth meeting of the General Board of the National Committee for Macroprudential Oversight (NCMO) was held on 14 December 2023.
During the meeting, Board members examined analyses and adopted measures concerning macroprudential policy and systemic risk, namely: (i) examining the regular analysis on the recalibration of the countercyclical capital buffer and (ii) not applying through voluntary reciprocity the macroprudential policy measure adopted by Belgium.
The NCMO General Board was informed of: (i) the assessment on the implementation framework of capital buffers in Romania; (ii) the solvency stress test results for the banking sector; (iii) the systemic risks to financial stability identified by member authorities as per their specific area of competence; (iv) the results of the questionnaire on assessing trends and preparedness related to climate change among financial institutions, and (v) the calendar of ESRB recommendations with implementation deadlines over the period ahead, for which national authorities have to take implementing measures.
The NCMO General Board approved NCMO Recommendation No. R/5/2023 on the countercyclical capital buffer in Romania. The macroprudential buffer rate is kept at 1 percent, as liquidity and solvency levels of the banking sector are adequate and profitability allows for the strengthening of capital reserves. The elevated global uncertainty calls for caution.
The members of the NCMO General Board decided not to voluntarily reciprocate the macroprudential measure of Belgium, given that the eligible exposures of the local banking sector to this country are immaterial.
The NCMO recommendation and decisions were unanimously approved by the NCMO General Board.
The NCMO 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.