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BANKS FACE SCRUTINY: NEW REGULATIONS INTRODUCED TO ENSURE PROFESSIONAL SECRECY AND SOUND FINANCIAL PRACTICES

Bucharest, Romania - The Romanian government has introduced new regulations aimed at ensuring the professional secrecy and sound financial practices of banks operating in the country.

PROFESSIONAL SECRECY

Under these new regulations, bank employees and directors are required to maintain professional secrecy regarding all transactions and services provided by the bank. This includes:

• The identity of account holders, which may only be disclosed to authorized individuals or in the event of a penal case.
• Individuals who obtain information from bank reports or documents.

CAPITAL REQUIREMENTS

The new regulations require banks to maintain a minimum level of social capital, which must be paid up in cash upon subscription. Additionally:

• Banks are required to permanently maintain a minimum level of their social capital, as determined by the National Bank of Romania.

PRUDENTIAL REQUIREMENTS

These regulations impose strict prudential requirements on banks, including:

• Ensuring that loan applicants are creditworthy and require guarantees under established lending norms.
• Assigning a portion of their gross profit to a reserve fund and building up a general reserve for credit risk.

ACCOUNTABILITY MEASURES

In the event of non-compliance with these regulations, banks may face accountability measures, including:

• The suspension or replacement of administrators by the National Bank of Romania.

These new regulations demonstrate the government’s commitment to ensuring the stability and integrity of the banking system in Romania. They are designed to protect the interests of both banks and their clients, while also promoting a culture of transparency and accountability within the industry.