The draft Order for the amendment of the NBR Order no. 2/2014 on certain reporting requirements related to the NBR Regulation No. 5/2013 on on prudential requirements for credit institutions was elaborated by NBR according to the powers granted under the provisions of the Government Emergency Ordinance no. 99/2006 regarding credit institutions and capital adequacy, approved by Law no. 227/2007, as further amended.

The Draft Order aims to eliminate the provisions regarding formats, forms, frequencies, and reporting deadlines related to interest rate risk in the banking book (IRRBB) activities, to avoid overlapping regulations with the revised IRRBB framework at the European level.

The draft Order for the amendment of the NBR Order no. 2/2014 on certain reporting requirements related to the NBR Regulation No. 5/2013 on on prudential requirements for credit institutions was elaborated by NBR according to the powers granted under the provisions of the Government Emergency Ordinance no. 99/2006 regarding credit institutions and capital adequacy, approved by Law no. 227/2007, as further amended.

The Draft Order aims to eliminate the provisions regarding formats, forms, frequencies, and reporting deadlines related to interest rate risk in the banking book (IRRBB) activities, to avoid overlapping regulations with the revised IRRBB framework at the European level.

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

   The main objective of the draft order is to amend the FINREP individual reporting framework, applicable to credit institution, in order to introduce the reporting obligation related to the turnover indicators, to include within the methodological rules the amendments made by the EBA to the validation rules and the clarifications provided by the NBR, as well to update the reporting framework of the financial and accounting statistical information reported by the Romanian branches of credit institutions having their headquarters in other Member States, similar with the changes made to the FINREP reporting framework.

   This draft order will apply starting with the reporting reference date 31.12.2024 and the first reporting term to the National Bank of Romania will be the date 20.01.2025.

2. The main provisions of the draft order:
   • including the reporting obligation related to the turnover indicators (from an accounting perspective and also from a prudential perspective, respectively for the fines calculation applied to credit institutions) and indicating the calculation method in relation to the positions from the profit or loss account form;
   • updating some correlations within the forms or between the reporting forms, similar to the changes made by the EBA to the validation rules and following the clarification requests received from the banks and from NBR specialized departments;
   • updating the provision of the NBR Order no. 9/2017, in order to result with clarity that this it is also applicable to the development banks;
   • including within the methodological norms the answers published by the EBA regarding certain implementation questions in the field of reporting;
   • amending the requirements in the case of the reports for which a reporting threshold is provided, in the sense that the first reporting obligation occurs only after the threshold has been exceeded for two consecutive reporting periods;
   • amending the mapping with the chart of accounts of the positions within the forms, considering the introduction of new accounts in the chart of accounts after the date of the last amendment of the FINREP framework, in accordance with the changes made to the NBR Order no. 27/2010¹ ;
   • correlation of the reporting framework of the financial and accounting statistical information reported by the Romanian branches of credit institutions having their headquarters in other Member States, similar with the changes made to the FINREP reporting framework.

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

   The main objective of the draft order is to amend the reporting framework aplicable to non-bank financial institutions for monitoring/ prudential supervision purposes, in order to introduce the obligation to report the turnover, to ensure the provision of specific information in case of a non-banking financial institution which is also a payment institution or electronic currency issuing institution, to amend the methodological norms following the clarification requests received from non-banking financial institutions, as well as other changes.

   This draft will apply starting with the reporting reference date 31.12.2024 and the first reporting term to the National Bank of Romania will be the date 30.01.2025.

2. The main provisions of the draft order:
   • including the reporting obligation of the turnover from an accounting perspective (IFRS) and indicating the calculation method in relation to the positions from the profit or loss account form;
   • updating some reporting forms, in order to ensure the provision of specific information in case of a hybrid non-banking financial institution (which also carries out activities regarding payment services and/or issuing electronic money);
   • updating the reporting instructions for the indicators included in the F 50.05 – Indicators on activity form, in order to clarify the content of some indicators;
   • amendments of the F 50.01 – Assets grouped by categories of operations form, in order to allow the reporting of values for a series of positions and taking into account also the need to respect some correlations within the form;
   • modifying the way of reporting of the demand deposits to credit institutions, respectively their presentation within the related form (along with cash and other values), distinct from the financial asset portfolios.

The objective of the draft order is to transpose the provisions of the Commission Delegated Directive (EU) 2023/2775 of 17 October 2023 amending Directive 2013/34/EU of the European Parliament and of the Council with regard to the adjustment of size criteria for micro-enterprises and small, medium-sized, and large enterprises or groups (hereinafter referred to as Directive (EU) 2023/2775) into the accounting regulations applicable to entities under the central banks accounting regulation scope. This directive aims to increase the threshold values related to size criteria (namely the value of balance sheet assets and turnover value) for categorizing enterprises/groups into the following categories: micro-enterprises, small, medium-size and large enterprises/groups.

According to the draft order, the provisions regarding the size criteria for classifying institutions/groups within the Accounting Regulations compliant with International Financial Reporting Standards, approved by the National Bank of Romania Order no. 27/2010, republished, and respectively within the Accounting Regulations compliant with European directives, approved by the National Bank of Romania Order no. 6/2015, as subsequently amended and supplemented, have been modified.

The provisions of the draft order will take effect starting with the financial statements for the 2024 fiscal year.

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.

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).