The NCMO meeting of 21 May 2018

2018-May-25 | Meetings

The General Board of the National Committee for Macroprudential Oversight (NCMO) convened on 21 May 2018 for its second meeting of the year. Discussions referred to macroprudential policy matters, such as the regular analysis on the recalibration of the countercyclical capital buffer (CCB), potential challenges in relation to the “First Home” programme, the persistence of structural imbalances regarding the soundness of non-financial corporations, the draft Annual Report of the NCMO for 2017 and the NCMO’s overall macroprudential strategy framework.

Discussions resulted in the unanimous approval of the following macroprudential policy measures:

  1. NCMO Recommendation No. R/1/2018 on recalibrating the “First Home” programme, whereby the Government is recommended to assess the opportunity of recalibrating the “First Home” programme from a social perspective by revising the requirements to access this programme while preserving a sustainable level of indebtedness.
  2. NCMO Recommendation No. R/2/2018 on implementing some measures related to firms’ financial soundness, whereby the Government is recommended to assess the opportunities to improve the regulatory framework governing non-financial corporations, after having consulted with businesspersons and social partners.
  3. NCMO Recommendation No. R/3/2018 on the countercyclical capital buffer in Romania, whereby the National Bank of Romania is recommended to maintain the countercyclical buffer rate for credit institutions at 0 (zero) percent and to monitor developments in household indebtedness.
  4. NCMO Recommendation No. R/4/2018 on implementing macroprudential instruments for achieving the intermediate objectives included in the Overall Macroprudential Strategy Framework of the National Committee for Macroprudential Oversight, whereby (i) the National Bank of Romania and the Financial Supervisory Authority are recommended to implement, where applicable, the macroprudential instruments for achieving the intermediate objectives included in the Overall Macroprudential Strategy Framework of the National Committee for Macroprudential Oversight, and (ii) the Government is recommended to support the NCMO’s macroprudential policy for the purpose of safeguarding financial stability.

    5. The National Committee for Macroprudential Oversight was established by virtue of Law No. 12/2017 on the macroprudential oversight of the national financial system, thus ensuring that Recommendation of the European Systemic Risk Board (ESRB) No. 3/2011 on the macro-prudential mandate of national authorities was implemented. The NCMO brings together representatives of the National Bank of Romania, the Financial Supervisory Authority and the Government of Romania. The NCMO’s mission is to ensure coordination in the field of macroprudential oversight of the national financial system by setting the macroprudential policy and the appropriate instruments for its implementation.