Annex 1a – The list of macroprudential instruments

The list of macroprudential instruments selected by the sectoral supervisory authorities in order to achieve the intermediate objectives of the National Committee for Macroprudential Oversight (NCMO)

Table 1 – Macroprudential instruments selected by the National Bank of Romania (NBR) according to intermediate objectives

Intermediate objectives	Macroprudential instruments
A. Mitigate and prevent excessive credit growth and leverage	Countercyclical capital buffer (CCB)
	Sectoral capital requirements (including requirements for intra-financial system exposures)
	Macroprudential leverage ratio
	Loan-to-value (LTV) requirements
	Loan-to-income/debt (service)-to-income (LTI) requirements
B. Mitigate and prevent excessive maturity mismatch and market illiquidity	Macroprudential requirements for the liquidity ratio (e.g. liquidity coverage ratio – LCR)
	Macroprudential restrictions on funding sources (e.g. net stable funding ratio – NSFR)
	Macroprudential unweighted limit to less stable funding (e.g. loan-to-deposit ratio)
	Margin and haircut requirements
C. Limit direct and indirect exposure concentration	Large exposure restrictions
C. Limit direct and indirect exposure concentration	CCP clearing requirement
D. Limit the systemic impact of misaligned incentives with a view to reducing moral hazard	SIFI capital surcharges
E. Strengthen the resilience of financial infrastructures	Margin and haircut requirements on CCP clearing
	Increased disclosure
	Structural systemic risk buffer
F. Increase financial intermediation in a sustainable manner	Improved expertise of bank staff involved in lending
	Greater dissemination of statistical data
	Bringing into local banks’ loan portfolio the higher quality sold loans and the loans granted directly by non-resident banks to non-financial corporations in Romania
G. Increase financial inclusion	Provision of payment services at prices adequate to both market conditions in Romania and the needs of consumers that do not benefit from financial services
G. Increase financial inclusion	Greater dissemination of information

Table 2 – Macroprudential instruments assumed selected by the Financial Supervisory Authority according to intermediate objectives.

Intermediate objectives	Macroprudential instruments
A. Mitigate and prevent excessive credit growth and leverage Applies to legal provisions related to the capital market (intermediaries).	A1. Countercyclical capital buffer
	A2. Capital conservation buffer
	A3. The macroprudential leverage ratio
B. Mitigate and prevent excessive maturity mismatch and market illiquidity In FSA case, this intermediate objective has applicability and coverage in the legal provisions regarding the insurance sector. For the capital market and the private pensions sector, the FSA does not currently have macroprudential instruments specified by the European or the local legislation.	B1. Macroprudential requirements to liquidity ratio
	B1.1 Liquidity ratio of insurance companies
	B1.2 Coverage of technical provisions by admissible assets
C. Limit direct and indirect exposure concentration Applies to financial entities operating in the capital market and private pensions sector in Romania.	C1. Large exposure restrictions
D. Limit the systemic impact of misaligned incentives with a view to reducing moral hazard Applies to financial entities operating in the capital market sector.	D1. SIFI capital surcharges
E. Strengthen the resilience of financial infrastructures Instruments E1 and E3 apply to financial entities operating in the capital market sector, while the E2 macroprudential instrument is applicable to the three markets supervised by FSA.	E1. Margin and haircut requirements on CCP clearing
	E2. Increased disclosure
	E3. Structural systemic risk buffer
F. Protect the insurance system against the consequences of some insurers’ insolvency (proposed in addition to the ESRB recommendations)	F1. Recovery plans
	F2. Resolution mechanism
	F3. Guarantee fund
G. Reduce the negative impact of the operational risks generated by the use of information and communication technology (proposed in addition to the ESRB recommendations)	G1. Action plan on how to address the vulnerabilities identified during the IT audit