Romania’s Banking Sector Under Scrutiny: National Bank Ensures Compliance with Regulations
The National Bank of Romania has been entrusted with the responsibility of ensuring that credit institutions and non-bank financial institutions operating in the country comply with banking regulations aimed at protecting depositors’ interests and maintaining a sound and viable banking sector.
Regulatory Framework
According to Government Emergency Ordinance No. 99/2006 on credit institutions and capital adequacy, the National Bank is responsible for prudential supervision of credit institutions and Romanian legal persons, as well as their branches established in other Member States or third countries.
Oversight Duties
As part of its oversight duties, the National Bank reviews each institution’s:
- Arrangements
- Strategies
- Processes
- Mechanisms to ensure compliance with relevant regulations
It also evaluates the risks to which each institution is exposed, including specific banking risks.
International Cooperation and Coordination
To facilitate effective supervision, the National Bank has established coordination and cooperation arrangements with competent authorities in other states. This ensures that institutions operating in Romania are subject to consistent standards and requirements.
Supervision of Non-Bank Financial Institutions
The National Bank’s supervisory powers extend beyond credit institutions to non-bank financial institutions registered with the General Register or Special Register. It monitors their activities and enforces compliance with relevant regulations, including those related to:
- Money laundering
- Terrorist financing
- International sanctions
Determination of Infringements and Sanctions
In addition to its supervisory role, the National Bank has the authority to determine infringements of banking regulations and impose corresponding sanctions. This power is exercised in accordance with applicable laws and regulations, including:
- Government Emergency Ordinance No. 202/2008 on the enforcement of international sanctions
- Law No. 656/2002 on the prevention and sanctioning of money laundering
Objectives
The National Bank’s efforts to ensure compliance with banking regulations are aimed at maintaining a stable and secure financial system in Romania. By enforcing strict standards and monitoring institutions’ activities, it helps to:
- Protect depositors’ interests
- Prevent financial crises