Financial Crime World

Romania’s Financial Regulatory Landscape: A Comprehensive Look at the National Bank of Romania, insurance Supervisory Commission, and National Securities Commission

Romania’s financial sector is governed by a robust regulatory framework that ensures the stability and integrity of its banking, electronic money, non-banking financial, payment, and insurance industries. In this article, we delve into the roles and responsibilities of three key regulatory authorities: the National Bank of Romania (NBR), the Insurance Supervisory Commission (ISC), and the National Securities Commission (NSC).

I. Banking Supervision: National Bank of Romania (NBR)

The NBR is the primary authority responsible for the supervision of:

  • Credit institutions
  • Electronic money institutions
  • Non-banking financial institutions
  • Payment institutions

Applicable Laws and Regulations

The key legislations governing the banking sector include:

  1. Government Emergency Ordinance no. 99/2006 on credit institutions and capital adequacy
  2. Law no. 312/2004 on the Statute of the National Bank of Romania
  3. Law no. 127/2011 on electronic money issuance

These laws cover various aspects, such as licensing, authorization, supervision, and prudential requirements.

Entities, Purposes, Powers, and Functions

As Romania’s central bank, the NBR plays a vital role in maintaining price stability and financial system stability through monetary and prudential policies. It is responsible for:

  • Supervising credit institutions
  • Issuing licenses
  • Enforcing regulations
  • Cooperating with EU regulatory bodies

Credit institutions under NBR’s supervision must file regular reports on matters such as:

  • Credit exposure
  • Securities portfolio
  • Liquidity

Electronic money institutions, payment institutions, and non-banking financial institutions are also required to report significant changes to the NBR.

II. Insurance Supervision: Insurance Supervisory Commission (ISC)

The ISC supervises the insurance market in Romania, ensuring its stability and protecting insured persons’ rights.

Applicable Laws and Regulations

Key laws include:

  1. Law no. 136/1995 on insurance and reinsurance
  2. Law no. 32/2000 on insurance activity and insurers’ supervision

Entities, Purposes, Powers, and Functions

The ISC functions as an autonomous public authority and is responsible for:

  • Supervising the entire insurance market
  • Issuing authorizations to insurance and reinsurance undertakings and brokers
  • Supervising their activities
  • Investigating potential violations
  • Ensuring the application of measures related to reorganization and bankruptcy of insurance companies

III. Capital Markets Supervision: National Securities Commission (NSC)

The NSC supervises Romania’s capital markets, ensuring trading efficiency and fairness.

Applicable Laws and Regulations

Key legislations include:

  1. Law no. 297/2004 on capital markets
  2. Law no. 31/1990 on Companies

Entities, Purposes, Powers, and Functions

As Romania’s securities regulator, the NSC is responsible for:

  • Issuing secondary legislation
  • Supervising institutions
  • Granting authorizations
  • Enforcing sanctions in the capital markets field

Institutional participants include:

  • Various market operators
  • Issuers of securities
  • Investment firms
  • Rating agencies

Conclusion

Romania’s financial sector is supported by a comprehensive regulatory framework consisting of the National Bank of Romania, the Insurance Supervisory Commission, and the National Securities Commission. Each regulatory body plays a distinct role in maintaining the financial sector’s stability and integrity. These entities ensure the implementation and enforcement of crucial laws and regulations, protecting consumers, and promoting financial system stability within Romania and in the European Union.