Banca Naţională a României

The ordinary meeting of the National Committee for Financial Stability (NCFS) took place on 16 June 2016.

During the meeting, the NCFS adopted Recommendation No. 2/16 June 2016 whereby it recommends the National Bank of Romania, in its capacity as competent authority, to maintain the countercyclical capital buffer at 0 (zero) percent, a level implemented starting 1 January 2016.

Considering that credit and private debt dynamics currently reveal no significant pressures in terms of private sector indebtedness, the NCFS estimates it is not necessary to set a countercyclical capital buffer rate of over 0 (zero) percent.

The countercyclical capital buffer is a macroprudential instrument used to mitigate and prevent excessive credit growth and leverage.

According to Article 136 of Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 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 NBR Regulation No. 5/2013 on prudential requirements for credit institutions, the appropriate countercyclical buffer rate shall be set on a regular basis.

The NCFS members will periodically issue recommendations on the implementation of the countercyclical capital buffer in Romania. More details on NCFS are available here.