The objective of the draft order is to update the semi-annually accounting reporting framework applicable to the entities under the National Bank of Romania accounting regulation scope, the main changes being related to:

• updating, in the case of non-banking financial institutions, the template of the accounting reporting form code 10 "Statement of assets, liabilities and equity", in order to align it with the format of the annual accounting reporting form provided for in NBR Order no. 3/2024;
• updating, in the case of the Bank Deposit Guarantee Fund, the template of the accounting reporting forms (code 10 "Statement of assets, liabilities and equity" and code 20 "Profit and loss account"), in order to align them with the format of the forms related to the annual financial statements, provided for in NBR Order no. 6/2015, with subsequent amendments and additions;
• updating the mapping with the chart of accounts for certain positions within the reporting forms, similar to those provided for by the annual accounting reporting framework (NBR Order no. 3/2024 and NBR Order no. 2/2020), respectively following the amendments made to NBR Order no.6/2015;
• updating some correlations within the accounting reporting forms.

The provisions of the draft order apply starting with the semi-annual accounting reporting prepared for the reporting date June 30, 2024.

The draft Regulation amending NBR Regulation no. 4/2023 on prudential requirements for development banks was elaborated by NBR in consideration to the powers conferred on it under Law No. 207/2022 regulating certain measures on the general framework applicable to the establishment and functioning of the development banks in Romania, as further amended. Thus, the draft regulation represents one of the stages in the development by the NBR of the secondary regulatory framework for the national development banks exempted from the CRD/CRR regime.

This draft regulation shall cover prudential requirements in areas such as: internal governance, outsourcing and remuneration, own funds requirements for credit risk, market risk, operational risk, settlement risk and leverage, liquidity requirements, internal capital and liquidity adequacy assessment process, capital buffer requirements, reporting and disclosure requirements.

Also, according to the draft Regulation, development banks carrying out activity in accordance with Law No. 207/2006 are subject to registration in a register published on the NBR website.

Following the issuance of the national regulatory framework in the field of authorization of credit institutions at the end of 2020, European Commission has adopted Delegated Regulation (EU) 2022/2580, legislative act of direct application, specifying the information to be provided in the application for the authorization as a credit institution, including the situations in which the competent authorities may waive the requirements referred to in this regulation.

The draft regulation sets out the authorization conditions and the documentation based on which NBR, as competent authority, authorizes a bridge credit institution, also taking into account the new European framework. The regulation was drafted by NBR, as the competent authority with the authorization of credit institutions in accordance with the GEO no. 99/2006 on credit institutions and capital adequacy, with subsequent amendments and additions, pursuant to article 264 of Law no. 312/2015 on the recovery and resolution of credit institutions and investment firms, as well as on amending and supplementing some normative acts in the financial field. On the date of entry into force of the draft regulation the provisions relating to the authorization of bridge credit institutions from NBR Regulation no. 12/2020 regarding the authorization of credit institutions and changes in their situation shall be repealed.

Thus, compared to the existing outsourcing framework, the main amendments brought to NBR Regulation no. 5/2013 on prudential requirements for credit institutions relate to the following:

• adjusting existing terminology to ensure consistency with the EBA/GL/2019/02 Guidelines and aligning the existing requirements related to: the outsourcing policy, continuity plans, outsourcing under special conditions, notification of outsourcing of critical or important functions and subsequent changes, minimum content of outsourcing arrangements, chain outsourcing and access and audit rights of credit institutions and competent authorities;
• introducing new requirements, in line with EBA/GL/2019/02 Guidelines, regarding: governance arrangements in the context of outsourcing (such as the requirement to establish an outsourcing function), exit strategy for outsourcing, documentation on outsourcing arrangements (including maintaining an updated register), risk assessment of outsourcing arrangements, due diligence checks on the external supplier.

On the other hand, in order to ensure an adequate legal risk management framework, the draft regulation introduces express provisions regarding the specific duties of the legal function, including in terms of professional competences and responsibilities of the legal advisors within the legal function.

1. General objectives and reasons for issuing the normative act:

In the context of the provisions of the Draft Government Emergency Ordinance on credit servicers and credit purchasers and for the amendment of some normative acts (hereinafter referred to as draft GEO), that was published on the Ministry of Economy, Entrepreneurship and Tourism website, which ensures the transposition of Directive (EU) 2021/2167 on credit servicers and credit purchasers and amending Directives 2008/48/EC and 2014/17/EU, the National Bank of Romania has the obligation to draw up a draft order to establish the format for reporting information on non-performing loans transferred by credit institutions.

In this sense, it was drawn-up the National Bank of Romania Draft Order for the approval of the methodological norms as regards reporting of information by credit institution on non-performing credit loans transferred subject to Government Emergency Ordinance no. /2023 regarding credit servicers and credit purchasers and for the amendment of some normative acts (hereinafter referred to as draft order).

This draft order is meant to be applied starting with the reporting prepared for the referrence date 30.06.2024. The reporting will have a quarterly frequency¹, with a reporting deadline to National Bank of Romania of 6 weeks from the end of the reporting quarter.

2. The main provisions of the draft order:

The draft order applies to credit institutions, romanian legal entities and include the templates for reporting information related to credit purchasers² and related to non-performing loans transferred by the credit institutions to credit purchasers³ and the methodological norms regarding the filling in of the templates.

The templates for reporting information on credit purchasers includes details regarding the credit purchasers (LEI code, identity, address, residence etc), or details related to credit purchasers representatives, where is the case.

The template on non-performing loans transferred by the credit institution to credit purchasers, provides the reporting of information on each transaction (the aggregate outstanding balance and the average size of transferred credits, the number of transferred credits, the discount value of transferred credits, the type and value of guarantees), both at the level of total transferred credits and at the level of the portfolio of credits grouped according to the debtor quality (natural person/ legal entity) and the currency in which the credit was granted (lei/ EUR/ other currencies).