This year’s fourth meeting of the General Board of the National Committee for Macroprudential Oversight (NCMO) was held on 16 December 2024.

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, (ii) evaluating the analysis on the recalibration of the capital buffer applicable to systemically important institutions identified at national level (O-SII buffer) for 2025, alongside the proposals on (iii) establishing an NCMO working group on credit guarantee government programmes, and (iv) submitting the final report on the implementation of Recommendation A of Recommendation ESRB/2019/18 on exchange and collection of information for macroprudential purposes on branches of credit institutions having their head office in another Member State or in a third country.

In addition, the NCMO General Board was informed of: (i) the possibility of using capital buffers in relation to other minimum requirements applied to credit institutions, (ii) the regular analysis on the systemic risks to financial stability identified by NCMO member authorities as per their specific area of competence, (iii) the solvency stress test results for the banking sector, (iv) the calendar for adopting measures domestically in view of implementing the ESRB recommendations, and (v) the macroprudential measures taken by member states of the European Economic Area (EEA) in 2024.

The General Board approved NCMO Recommendation No. R/5/2024 on the countercyclical capital buffer. The macroprudential buffer rate is kept at 1 percent, in an environment marked by uncertainty and geopolitical challenges, but also in the context of tensions surrounding macroeconomic equilibria. Key liquidity and solvency indicators in the local banking sector stand above the European average and allow the build-up of capital buffers without affecting the real sector’s access to finance, in line with the European recommendations.

Moreover, the General Board approved NCMO Recommendation No. R/6/2024 on the capital buffer for other systemically important institutions in Romania, whereby the National Bank of Romania is recommended to impose, starting 1 April 2025, at the highest level of consolidation, a capital buffer for other systemically important institutions (O-SII buffer) applicable to banks identified as systemically important pursuant to the Methodology for identifying systemic credit institutions and calibrating the O-SII buffer, based on data reported as at the reference date of 30 September 2024. This measure is subject to prior notification of the ESRB. Therefore, the NCMO recommendation and the buffer rate applicable to each systemic bank will be published on the NCMO website 30 days after the notification date, according to the provisions of the European regulatory framework.

During the meeting, the General Board also approved the decision to establish an NCMO working group on credit guarantee government programmes.

The NCMO recommendations and decision 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.