The General Board of the National Committee for Macroprudential Oversight (NCMO) convened on 24 September 2018 for its third meeting of the year. Discussions referred to macroprudential policy matters, such as the regular analysis on the recalibration of capital buffers and the implementation of recommendations on macroprudential policy and systemic risk laid down in the IMF’s “Romania: Financial Sector Assessment Program”.

Following the discussions, the members present at the meeting unanimously approved the macroprudential policy measures below: :

1. NCMO Recommendation No. R/5/2018 on the countercyclical capital buffer in Romania, whereby the National Bank of Romania is recommended to maintain the countercyclical buffer rate at 0 (zero) percent and to monitor developments in household indebtedness.
2. NCMO Recommendation No. R/6/2018 on the capital buffer for other systemically important institutions in Romania, whereby the National Bank of Romania is recommended to impose, starting 1 January 2019, a capital buffer for other systemically important institutions (O-SII buffer), on an individual or consolidated basis, as applicable, calculated based on the total risk exposure amount for all the credit institutions identified as having a systemic nature based on the data reported as at 30 June 2018, as follows: (i) 2 percent for Banca Comercială Română S.A. (consolidated level), Raiffeisen Bank S.A. (consolidated level), Banca Transilvania S.A. (consolidated level), and CEC Bank S.A. (individual level), (ii) 1.5 percent for OTP Bank Romania S.A. (consolidated level) and (iii) 1 percent for UniCredit Bank S.A. (consolidated level), BRD-Groupe Société Générale S.A. (consolidated level), Alpha Bank România S.A. (individual level) and Garanti Bank S.A. (individual level).
3. NCMO Recommendation No. R/7/2018 on the systemic risk buffer in Romania, whereby the National Bank of Romania is recommended, while implementing NCMO Recommendation No. R/9/2017, to make the semi-annual re-assessment and set the 12-month reference interval for the average values of the indicators based on which the systemic risk buffer is determined, as well as the level at which credit institutions apply this buffer, namely on individual and/or consolidated level.

As regards the capital buffer for other systemically important institutions (O-SII buffer), members discussed its manner of implementation in 2019. A final decision in this respect will be published after the expiry of the prior notification period (30 days) to the ESRB, EC, EBA and to the relevant national competent and designated authorities, in line with the applicable European regulations.

Moreover, the NCMO approved the action plan for implementing the recommendations laid down in the IMF’s “Romania: Financial Sector Assessment Program” and the joint assessment procedure at NCMO level of systemic risks.

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.