Banca Naţională a României

The ordinary meeting of the National Committee for Financial Stability (NCFS) took place on 18 December 2015.

The meeting was attended by Mr. Mugur Isărescu – Governor of the National Bank of Romania and NCFS President, Ms. Anca Dana Dragu – Minister of Public Finance, Mr. Mișu Negrițoiu – President of the Financial Supervisory Authority (FSA) and Mr. Lucian Croitoru – Chairman of the Board of the Bank Deposit Guarantee Fund.

According to its prerogatives to adopt recommendations and advisory opinions respectively, during the transitional period until the interinstitutional structure coordinating macroprudential supervision of the national financial system becomes operational (Art. 1261 of Government Emergency Ordinance No. 99/2006 on credit institutions and capital adequacy, as approved, amended and supplemented by Law No. 227/2007, as subsequently amended and supplemented), the Committee reviewed the capital buffers that may be applied to financial investment companies, apart from the own funds requirements, in order to strengthen the resilience of this financial sector component.

In view of the obligation deriving from Directive 2013/36/EU of the European Parliament and of the Council on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC, transposed into the national legislation via FSA Regulation No. 3/2014 and Government Emergency Ordinance No. 99 of 6 December 2006 on credit institutions and capital adequacy, as approved, amended and supplemented by Law No. 227/2007, as subsequently amended and supplemented, to activate the capital conservation buffer and the countercyclical capital buffer as of 1 January 2016, the NCFS members adopted NCFS Recommendation No. 2/18.12.2015 whereby the FSA, in its capacity as competent authority, is recommended to impose on financial investment companies the following levels of these buffers:

1. The capital conservation buffer for financial investment companies will be phased in between 1 January 2016 and 1 January 2019 in equal increments of 0.625 percent per annum, as follows:
   • As of 1 January 2016 – 0.625 percent;
   • As of 1 January 2017 – 1.25 percent;
   • As of 1 January 2018 – 1.875 percent;
   • As of 1 January 2019 – 2.5 percent.
2. The countercyclical capital buffer and the systemic risk buffer for financial intermediaries will be maintained at 0 percent.

The use of such macroprudential instruments is not expected to imply any capital contribution, at this point in time, for financial services companies in Romania, considering the current level of capital reserves in place, as revealed by the reported capital adequacy indicators.

The NCFS members will periodically issue recommendations on the implementation of capital buffers in Romania.