Journal of Knowledge Management, Economics and Information Technology

It is clear that a banking union at the European level is a gain, but it is not a solution for all the problems that have been revealed by the last financial crisis. Although the Single Rulebook uniforms banks’ risks management and micro-prudential supervision, the macro-prudential components contained are reduced and academically challenged. The question of Member States outside the Eurozone on the participation within the Single Supervisory Mechanism is when is the right moment and not if, since there is an implicit horizon for joining the Eurozone and thus to the mechanism. For these Member States, where the banking system is dominated by banking groups supervised by the European Central Bank, entering into a close cooperation with the Single Supervisory Mechanism does not appear to be a necessity, given that national supervision authorities are applying the Single Rulebook, and cooperation between national authorities and the European Central Bank is clearly established.

  The Need for a Banking Union (617.2 KiB, 1,765 hits)

Romania was one of many emerging economies that has been affected by the excessive credit growth, the excessive price assets growth driven by the credit growth and by the foreign currency lending. The national macro-prudential tool kit was diverse and used to solve these issues both before and during the latest financial crisis. Analyzing the efficiency of these tools, it can be argued that those designed to prevent the build-up of systemic risks in the expansionary phase did not worked as they should, but this situation is not a country specific one, many other countries facing it, while those tools designed to create counter cyclical capital buffers proved to be more efficient than the first ones, ensuring a strong resilience of the banking system in front of financial crisis.

  Macroprudential Policies. The Romanian Case (723.5 KiB, 2,256 hits)

In Romania, the legal framework which regulates the legal regime of credit institutions is Governmenr Emergency Ordinance no. 99/2006 on credit institutions and capital adequacy, amended and approved by Law no. 227/2007. This regulation includes also the legal framework for the activity of the authority competent in the field, as well as the legal relations established between the national authority and the competent authorities in other European Union member states.Pursuant to provisions of Art. 4 par.(1), the authority competent as regards the regulation, licensing and prudential supervision of credit institutions in the National Bank of Romania.Moreover, this institution provides this activity as one of its main responsabilities stipulated in Art.2 par. (2) of Law no. 312/2004 on the Statute of the National Bank of Romania.In support of this competence, Art.25 par.(1) of the law expressly mentions that “the National Bank of Romania has exclusive competence to license credit institutions and is in charge with the prudential supervision of the credit institutions  which it has authorised to operate in Romania”; in the next paragraph, the article stipulates the empowerment limits for the authority, with the declared purpose of assuring the operating and viability of the banking system.

  Cooperation in banking between the national bank of Romania and competent authorities in the European Union (72.1 KiB, 2,786 hits)

Romania’s banking system is a two-tier system, including the National Bank and credit institutions. This system was introduced in December 1990, the first step of the banking reform. The legislative framework governing the banking system comprises: Law on National Bank of Romania – Law no. 312 of 28 June 2004 Ordinance on credit institutions and capital adequacy – Government Emergency Ordinance no. 99 of 6 December 2006; Law for the approval of Government Emergency Ordinance no. 99 of 6 December 2006 – Law no. 227 of 4 July 2007. On the Romanian market also operates non-bank financial institutions such as mutual assistance funds, pawnshops, financial leasing companies, credit companies for individuals, micro-finance companies, mortgage companies, companies offering factoring operations, finance companies specializing in commercial transactions, and others.

  Banking system in Romania and implementation of electronic payment (134.9 KiB, 5,435 hits)