Recommendations

Having regard to:

1. the provisions of Art. 3, para. (2), letter b) and para. (3) of Law No. 12/2017 on the macroprudential oversight of the national financial system and the provisions of NCMO Regulation No. 2/2017 on the methodology and procedures used for setting capital buffers and the scope of these instruments, as subsequently amended and supplemented, Articles 4-9 on the countercyclical capital buffer and Art. 1 on the application of capital buffers,
2. the objective of the countercyclical capital buffer (CCyB) to improve the banking sector’s resilience to potential losses generated by excess credit growth. The CCyB is built up in periods of excess credit growth as an add-on to the capital conservation buffer and may be released during credit crunches in order to absorb losses. The countercyclical buffer rate, expressed as a percentage of total risk exposure amount of credit institutions with credit exposures in Romania, shall range between 0 percent and 2.5 percent and shall be calibrated in steps of 0.25 percentage points or multiples of 0.25 percentage points. Where justified, a CCyB rate higher than 2.5 percent of total risk exposure amount may be set.

Whereas:

• Lending has been confirmed to continue on an accelerating trend, in contrast to the still uncertain and unsteady health environment,
• Recent developments do not show a relief of tensions surrounding macroeconomic equilibria,
• The high levels of liquidity and profitability indicators of the banking sector allow capital conservation, without creating lending constraints and hindering eligible debtors’ access to loans.

Pursuant to:

• the provisions of Art. 3, para. (1) letters b), e) and i) and the provisions of Art. 4, para. (1) of Law No. 12/2017 on the macroprudential oversight of the national financial system,

The National Committee for Macroprudential Oversight has issued this recommendation:

• Art.1 – The National Bank of Romania is recommended to keep in place the measure on raising the countercyclical buffer rate to 0.5 percent, as of 17 October 2022.
• Art.2 – Considering the high level of uncertainty over health and economic developments at national and international level, the National Bank of Romania is recommended to further monitor developments in the economy and lending.
• Art.3 – Until 17 October 2022, depending on the macroeconomic conditions and the developments in lending, the measure recommended to be implemented in accordance with Art. 1 may be subject to revision by the NCMO.

Having regard to:

• the provisions of Art. 3 para. (2) letter b) and para. (3) of Law No. 12/2017 on the macroprudential oversight of the national financial system,
• the provisions of Articles 21-24 of NCMO Regulation No. 2/2017 on the methodology and procedures used for setting capital buffers and the scope of these instruments, as amended and supplemented by NCMO Regulation No. 1 of 18 December 2020,
• the credit institutions identified as having a systemic nature pursuant to the methodology applied at national level and harmonised with the EBA Guidelines on the criteria to determine the conditions of application of Article 131(3) of Directive 2013/36/EU (CRD) in relation to the assessment of other systemically important institutions (O-SIIs) – EBA/GL/2014/10, based on the data reported as at 30 June 2021,
• the calibration of the capital buffer for other systemically important institutions – O-SII buffer – depending on the scores obtained by systemic banks in the first assessment stage (which determines the mandatory indicators recommended by the European Banking Authority), using 500-basis point buckets (the bucketing approach), which are assigned O-SII buffer values in ascending order based on systemic importance, in equal increments of 0.5 percentage points (from 0.5 percent to 3 percent), as follows:

Whereas:

• the capital buffer for other systemically important institutions (O-SII buffer) is a capital reserve that shall be set to mitigate systemic risk posed by the size of credit institutions, which does not change significantly throughout the business and financial cycles,

• the requirements on the O-SII buffer are reassessed on an annual basis, being applicable as of 1 January 2016,

• for O-SIIs with domestic capital and O-SIIs that are a subsidiary of either a G-SII or an O-SII that is an institution or a group whose parent undertaking is an EU parent institution and is subject to an O-SII buffer on a consolidated basis, the applicable O-SII buffer rate is set in accordance with the provisions of Art. 23 para. (1) and Art. 23²(2) of NCMO Regulation No. 2/2017 on the methodology and procedures used for setting capital buffers and the scope of these instruments, as subsequently amended and supplemented by NCMO Regulation No. 1 of 18 December 2020,

Pursuant to:

• the provisions of Art. 3, para. (1) letters b), c), e) and i) and the provisions of Art. 4, para. (1) letter a) of Law No. 12/2017 on the macroprudential oversight of the national financial system,

The General Board of the National Committee for Macroprudential Oversight has issued this recommendation:

The National Bank of Romania is recommended to impose, starting 1 January 2022, 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 2021, as follows: (i) 2 percent for Banca Transilvania S.A. (consolidated level), (ii) 1.5 percent for Banca Comercială Română S.A. (consolidated level), UniCredit Bank S.A. (consolidated level), BRD – Groupe Société Générale S.A. (consolidated level), (iii) 1 percent for Raiffeisen Bank S.A. (consolidated level), and (iv) 0.5 percent for CEC Bank S.A. (individual level), Alpha Bank România S.A. (individual level), OTP Bank România S.A. (consolidated level) and Banca de Export-Import a României EXIMBANK S.A. (consolidated level).

Information on updated list of systemically important banks and on the buffer for the other systemically important institutions (O-SII buffer) applicable in 2022

Having regard to:

Recommendation of the European Systemic Risk Board on identifying legal entities (ESRB/2020/12)

Pursuant to:

• the provisions of Art. 3, para. (2), letter b) and para. (3) of Law No. 12/2017 on the macroprudential oversight of the national financial system and the provisions of NCMO Regulation No. 2/2017 on the methodology and procedures used for setting capital buffers and the scope of these instruments, as subsequently amended and supplemented, Articles 4-9 on the countercyclical capital buffer and Art. 1 on the application of capital buffers,
• (2) the objective of the countercyclical capital buffer (CCyB) to improve the banking sector’s resilience to potential losses generated by excess credit growth. The CCyB is built up in periods of excess credit growth as an add-on to the capital conservation buffer and may be released during credit crunches in order to absorb losses. The countercyclical buffer rate, expressed as a percentage of total risk exposure amount of credit institutions with credit exposures in Romania, shall range between 0 percent and 2.5 percent and shall be calibrated in steps of 0.25 percentage points or multiples of 0.25 percentage points. Where justified, a CCyB rate higher than 2.5 percent of total risk exposure amount may be set.

Whereas:

• Lending has been increasing fast, its growth rate accelerating particularly during 2021, amid the recovery from the sharp economic contraction seen in the context of the pandemic outbreak.
• The tensions surrounding macroeconomic equilibria persist, especially via the twin deficits, i.e. budget and current account deficits,
• Several Member States announced their decision to raise the countercyclical buffer rate, signalling a normalisation trend of macroprudential policy across the EU, concurrently with waiving the restrictions on dividend distribution,
• The high levels of voluntary capital reserves built up by the banking sector and of liquidity indicators, exceeding the EU averages, allow capital to be conserved, without affecting the loan supply, in the context of a robust profitability in recent years,
• Eligible borrowers have access to finance, with credit institutions estimating credit standards to remain unchanged in the case of loans to non-financial corporations and for both categories of loans to households.

Pursuant to:

• the provisions of Art. 3, para. (1) letters b), e) and i) and the provisions of Art. 4, para. (1) of Law No. 12/2017 on the macroprudential oversight of the national financial system,

The National Committee for Macroprudential Oversight has issued this recommendation:

• Art. 1 – The National Bank of Romania is recommended to raise the countercyclical buffer rate to 0.5 percent from 0 percent, as of 17 October 2022.
• Art. 2 – Considering the still high level of uncertainty over macroeconomic developments at national and international level, the National Bank of Romania is recommended to further monitor developments in the economy and lending.
• Art. 3 – Until 17 October 2022, depending on the macroeconomic conditions and the developments in lending, the measure recommended to be implemented in accordance with Art.1 may be subject to revision by the NCMO.

Having regard to:

• the provisions of Art. 2 para. (1) and Art. 3 para. (1) let. b) of Law No. 12/2017 on the macroprudential oversight of the national financial system,
• NCMO Decision No. D/4/14.10.2020 that approved the set-up of a working group tasked with identifying possible solutions to support green finance,
• the significant role of climate change effects for the Romanian economy and the banking sector, in terms of both opportunities and also costs, if the transition to a green economy is delayed,
• the conclusions of the analysis of the NCMO Working Group on supporting green finance.

Whereas:

• Inaction to fight climate changes poses a sizeable risk to both the financial system and the economy,
• The structural shift of the economy to a higher value added and environmentally sustainable economy comes as a great opportunity for Romania,
• The fundamental objective of the Committee is to contribute to safeguarding financial stability, also by strengthening the resilience of the financial system and by containing the build-up of systemic risks, thereby ensuring a sustainable contribution of the financial system to economic growth,

Pursuant to:

• the provisions of Art. 3 para. (1) let. e) and Art. 4 para. (1) let. a) and let. b) of Law No. 12/2017 on the macroprudential oversight of the national financial system,

The National Committee for Macroprudential Oversight has issued this recommendation:

I. With a view to sustainably enhancing access to finance for projects on the climate change agenda, the NCMO recommends the following:

1. Communication by national authorities to the entities in their area of competence of recommendations on a prudent approach to climate risk. The recommendations shall cover at least the following areas: (i) governance, (ii) strategy, (iii) risk management, (iv) scenario analysis and stress testing and (v) transparency. The recommendation is addressed to the National Bank of Romania and the Financial Supervisory Authority. Deadline for implementation: 31 December 2021
2. Submit to the international financial institutions (EBRD, EIB, WB, etc.), as part of the regular consultation process on their activity in Romania, the proposal to consider the following aspects for the 2021-2025 period, with a view to enhance the financing of green projects: (i) to use, to a greater extent, the portfolio guarantee scheme, rather than credit lines, for their financing, (ii) to help less bankable projects become bankable, where appropriate and (iii) to increase the technical assistance to SMEs and credit institutions for identifying, preparing, financing and implementing green projects. The recommendation is addressed to the Government. Deadline for implementation: 31 December 2021.
3. Create an interministerial group tasked with compiling the Sovereign Green Bond Framework, setting the eligibility criteria to identify the eligible projects for sovereign green bond financing and develop the necessary expertise to issue and monitor the issuance of such instruments and to prepare and submit the annual reports until the full allocation of expenses. The recommendation is addressed to the Government. Deadline for implementation: 31 May 2022.
4. Conduct an analysis on the opportunity of easing the prudential requirements for green finance, in line with similar concerns at European level, with a view to stimulate this category of lending, without affecting financial stability. The recommendation is addressed to the National Bank of Romania and the Financial Supervisory Authority. Deadline for implementation: 30 June 2022.
5. Set up a support scheme for tendering new renewables capacities based on Contracts for Difference (CfD), ensuring that the project income per MWh produced is secured for a sufficient period of time. The recommendation is addressed to the Government. Deadline for implementation: 31 January 2022.
6. Amend Government Emergency Ordinance No. 74/2020 on amending and supplementing Law No. 123/2012 – The Electricity and Natural Gas Act to allow all producers of renewables to conclude bilateral power purchase agreements (PPA) outside the centralised market, negotiating freely and directly with suppliers or end-users of electricity, with the possibility to have them concluded before the start of the construction. The recommendation is addressed to the Government. Deadline for implementation: 31 January 2022.

II. With a view to supporting the structural change of the economy towards one with a higher value added, the NCMO recommends the following:

7. Develop an industrial policy focusing on the climate change agenda, phased in annually until 2025, in correlation with the European Commission’s New Industrial Strategy for Europe, which targets two areas: green transition and digitalisation. The industrial policy should also include solutions for the relocation of global production chains linked to climate change, from abroad to Romania. The recommendation is addressed to the Government. Deadline for implementation: 31 December 2021.
8. Assign markedly higher scores, in any support scheme provided by the authorities (state aid, guarantees from credit guarantee funds, EU funds, promotion of investments, exports, etc.), to firms that make an important contribution to the climate change agenda. The recommendation is addressed to the Government. Deadline for implementation: 31 December 2021.
9. Elaborate and publish a methodology for identifying companies with domestic capital that competitively produce goods and services related to green sectors. Prepare, regularly update and publish the list of companies identified using that methodology. Engage Romania’s diplomatic and commercial representatives from abroad in promoting the companies on this list. The recommendation is addressed to the Government. Deadline for implementation: 31 December 2021.
10. Revise the Power Grid Development Plan in order to fulfil Romania’s obligations to meet the renewable energy targets by 2030, as set forth in the 2021-2030 Integrated National Energy and Climate Plan (INECP) and the Energy Strategy of Romania. A key part is played by Transelectrica, which should substantially revise its investment plans and implement them earlier. The recommendation is addressed to the Government. Deadline for implementation: 31 December 2021.
11. Launch a support scheme for new high-efficiency cogeneration capacities whose beneficiaries will be selected on the basis of a competitive tender. The recommendation is addressed to the Government. Deadline for implementation: 31 January 2022.

III. With a view to enhancing transparency, improving reporting and the availability of climate change-related information and raising awareness on the impact of climate change in society and the financial system, the NCMO recommends the following:

12. Create a dashboard to monitor climate change risks to the banking sector, which should be regularly updated and disseminated. Conduct annual stress tests on climate risk-related issues and publish the results. The recommendation is addressed to the National Bank of Romania. Deadline for implementation: 31 December 2021.
13. Introduce in the NBR’s Central Credit Register information on green loans, starting from the European taxonomy. The recommendation is addressed to the National Bank of Romania. Deadline for implementation: 30 June 2022.
14. Require large companies and recommend SMEs to publish data (the latter voluntarily), in digital format (online platform), according to uniform and transparent specifications and definitions. The recommendation is addressed to the Government. Deadline for implementation: 30 June 2022.
15. Encourage non-financial reporting by SMEs via: (i) the publication of a simplified reporting model, (ii) the digitalisation of reporting and (iii) the allocation of funds to increase the reporting capacity of SMEs, including by compiling guidelines. Set up an automated framework for monitoring the reporting of non-financial statements. The recommendation is addressed to the Government. Deadline for implementation: 30 June 2023.
16. Develop the climate change governance architecture (adaptation and mitigation), involving the relevant ministries, the Presidential Administration, the scientific environment, the private sector, the NBR, the FSA, credit institutions, international financial institutions, NGOs, etc. The recommendation is addressed to the Government. Deadline for implementation: 31 January 2022.

Having regard to:

Recommendation of the European Systemic Risk Board on identifying legal entities (ESRB/2020/12)

Pursuant to:

• the provisions of 3 para. (1) let. f) and k), para. (2) let. a) and b) and para.(4), together with those of Art. 4 para. (1) let. a) of Law No. 12/2017 on the macroprudential oversight of the national financial system,

The National Committee for Macroprudential Oversight has adopted this recommendation

1. The National Bank of Romania and the Financial Supervisory Authority are recommended to the extent permitted by law and subject to the principle of proportionality:

a) to require or, where applicable, to continue to require, all legal entities involved in financial transactions under their supervisory remit to have a legal entity identifier (LEI);

b) when drafting, imposing, or amending financial reporting obligations, to include or, where applicable, to continue to include, in such obligations an obligation to identify by way of an LEI:

– the legal entity subject to the reporting obligation; and

– any other legal entity about which information must be reported and which has an LEI;

c) to identify or, where applicable, to continue to identify, by way of its LEI, any legal entity about which they publicly disclose information and which has an LEI.

2. For the purposes of this Recommendation, an LEI refers to a legal entity identifier and means a 20-character reference code to uniquely identify legally distinct entities that engage in financial transactions and associated reference data and which is based on the ISO standard 17442 developed by the International Organization for Standardization.

Having regard to:

• the provisions of Art. 3, para. (2), letter b) and para. (3) of Law No. 12/2017 on the macroprudential oversight of the national financial system and the provisions of NCMO Regulation No. 2/2017 on the methodology and procedures used for setting capital buffers and the scope of these instruments, as subsequently amended and supplemented, Articles 4-9 on the countercyclical capital buffer and Art. 1 on the application of capital buffers,
• the objective of the countercyclical capital buffer (CCyB) to improve the banking sector’s resilience to potential losses generated by excess credit growth. The CCyB is built up in periods of excess credit growth as an add-on to the capital conservation buffer and may be released during credit crunches in order to absorb losses. The countercyclical buffer rate, expressed as a percentage of total risk exposure amount of credit institutions with credit exposures in Romania, shall range between 0 percent and 2.5 percent and shall be calibrated in steps of 0.25 percentage points or multiples of 0.25 percentage points. Where justified, a CCyB rate higher than 2.5 percent of total risk exposure amount may be set.

Whereas:

• In the current context, the banking sector has a key role in financing the real economy in order to strengthen economic recovery.
• Measures for easing macroprudential requirements, which were aimed at this instrument as well, were widely adopted across the European Union with the purpose of supporting the real economy.
• The dynamics at macroeconomic level continue to be difficult to assess, the economic recovery expected in 2021 being strongly influenced by the vaccination progress.

Pursuant to

• the provisions of Art. 3, para. (1) letters b), e) and i) and the provisions of Art. 4, para. (1) of Law No. 12/2017 on the macroprudential oversight of the national financial system,

The National Committee for Macroprudential Oversight has issued this recommendation:

In view of the developments in loans to the private sector, as well as of the economic and financial dynamics recorded lately at national and international level, the National Bank of Romania is recommended to maintain the countercyclical buffer rate at 0 (zero) percent. Moreover, the NBR is recommended to further monitor developments in the economy and lending at aggregate and sectoral levels, with a focus on the impact of the COVID-19 pandemic on household and corporate financing by credit institutions.

• The European Banking Authority Guidelines on the specification and disclosure of systemic importance indicators – EBA/GL/2020/14, issued under Art. 16 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing an European Supervisory Authority (European Banking Authority);
• Articles 15 to 20 of NCMO Regulation No. 2/2017 on the methodology and procedures used for setting capital buffers and the scope of these instruments, as subsequently amended and supplemented, specifying the NCMO tasks to identify and to report data of G-SIIs.

Whereas

• EBA/GL/2020/14 are also addressed to designated authorities referred to in Art. 131 para. (1) of Directive 2013/36/EU, other than the competent authorities, i.e. to the National Committee for Macroprudential Oversight (NCMO) at a national level;

• Directive 2013/36/EU regulates the activity of: (i) credit institutions, under the supervisory scope of the National Bank of Romania and of (ii) investment firms, supervised by the Financial Supervisory Authority;

• So far, no global systemically important institutions (G‑SII) were identified within the Romanian banking system, given the relatively small-sized institutions on the domestic banking market. An entity can be classified as G-SII where its leverage ratio exposure measure exceeds EUR 200 billion (as provided for in para. 6 of EBA/GL/2020/14) on a consolidated or individual basis;

• Pursuant to Art. 16 para. (3) of

Regulation (EU) No 1093/2010, competent authorities and financial institutions shall make every effort to comply with the guidelines, by implementing provisions into their practices.

Pursuant to:

– the provisions of Art. 3, para. (1), letters c) and k), para. (2), let. b), and para. (4), together with those of Art. 4, para. (1), let. a) ofLaw No. 12/2017 on the macroprudential oversight of the national financial system,

The General Board of the National Committee for Macroprudential Oversight has issued this recommendation:

The National Bank of Romania and the Financial Supervisory Authority, in their capacity as sectoral financial supervisory authorities, are recommended to comply with the provisions of the European Banking Authority Guidelines on the specification and disclosure of systemic importance indicators – EBA/GL/2020/14 from the date when there are relevant institutions (G-SIIs) within their jurisdiction and to ensure their enforceability against the relevant institutions.

Having regard to:

• 3 para. (2) let. a) of Law No. 12/2017 on the macroprudential oversight of the national financial system
• ESRB Recommendation on restriction of distributions during the COVID-19 pandemic (ESRB/2020/7)
• Recommendation ESRB/2020/15 amending Recommendation ESRB/2020/7 on restriction of distributions during the COVID-19 pandemic
• The major role played by the financial system in economic recovery in the context of the COVID-19 pandemic crisis

Pursuant to:

• the provisions of Art. 3, para. (1) let. f) and the provisions of Art. 4, para. (1) let. a) of Law No. 12/2017 on the macroprudential oversight of the national financial system,

The National Committee for Macroprudential Oversight has adopted this recommendation:

1. The National Bank of Romania and the Financial Supervisory Authority, in their capacity as competent authorities, are recommended to request credit institutions, investment firms, insurance and reinsurance companies under their supervisory remit to refrain at least until 30 September 2021 from undertaking any of the following actions, which have the effect of reducing the quantity or quality of own funds at consolidated and/or individual level:
   • (a)Make a dividend distribution or give an irrevocable commitment to make a dividend distribution;
   • (b)Buy-back ordinary shares;
   • (c)Create an obligation to pay variable remuneration to a member of a category of staff whose professional activities have a material impact on the financial institution’s risk profile.

The exception to this are financial institutions that apply heightened caution in carrying out any of those actions and the resulting reduction does not exceed the conservative threshold set by their competent authority.

2. In calibrating the conservative threshold, competent authorities should pay due regard to:

(a) the objective of this Recommendation, in particular the need for financial institutions to maintain a sufficiently high level of capital in order to mitigate systemic risk and to contribute to economic recovery, taking into account the risks of a deterioration of the solvency position of the real sector in view of the pandemic,

(b) the assurance that the overall level of distributions of financial institutions is significantly lower than in the recent years prior to the COVID-19 crisis,

(c) the specificities of each sector within the respective competent authority’s supervisory remit.

3. The National Bank of Romania and the Financial Supervisory Authority are recommended to engage in bilateral dialogue with financial institutions under their supervisory remit, before the latter undertake any of the actions mentioned in point 1 letter (a) or (b).
4. The competent authorities are recommended to apply the following criteria to the implementation of this Recommendation:
   • (a) pay due regard to the principle of proportionality, taking into account, in particular, the nature of financial institutions and their ability to contribute to the mitigation of systemic risk from a financial stability perspective that arises from the COVID-19 crisis and to the economic recovery;
   • (b) avoid regulatory arbitrage;
   • (c) regularly assess the impact of restrictions on distributions they have imposed in light of the objectives of this Recommendation.

   In order to implement point 1 letters (a) and (b) of this Recommendation and to assess whether it is appropriate to apply the restrictions at sub-consolidated or at individual level, competent authorities are recommended to adhere to the following principles:

   (a) Principle 1: Whilst taking into account the need to prevent or mitigate systemic risk to financial stability in their Member State and in the Union, competent authorities should support the smooth functioning of the internal market and recognise the need for the financial sector to provide a sustainable contribution to economic growth in Member States and the Union as a whole.

   (b) Principle 2: Competent authorities should ensure that any restriction does not entail disproportionate adverse effects on the whole or parts of the financial system in other Member States or in the Union as a whole.

   (c) Principle 3: Competent authorities should closely cooperate with each other and with the relevant resolution authorities, including in colleges, where applicable.

Having regard to:

1. the provisions of Art. 3, para. (2), letter b) and para. (3) of Law No. 12/2017 on the macroprudential oversight of the national financial system and the provisions of NCMO Regulation No. 2/2017 on the methodology and procedures used for setting capital buffers and the scope of these instruments, as subsequently amended and supplemented, namely Art. 4-9 on the countercyclical capital buffer, as well as Art. 1 on the application of capital buffers,
2. the objective of the countercyclical capital buffer (CCyB) to improve the banking sector’s resilience to potential losses generated by excess credit growth. The CCyB is built up in periods of excess credit growth as an add-on to the capital conservation buffer and may be released during credit crunches in order to absorb losses. The countercyclical buffer rate, expressed as a percentage of total risk exposure amount of credit institutions with credit exposures in Romania, shall range between 0 percent and 2.5 percent and shall be calibrated in steps of 0.25 percentage points or multiples of 0.25 percentage points. Where justified, a CCyB rate higher than 2.5 percent of total risk exposure amount may be set.

Whereas:

• The COVID-19 pandemic had a strong impact on the national economy throughout 2020, with effects also on the lending activity;
• While the economic revival in the second part of the year exceeded expectations, and the start of the vaccination campaign has strengthened the prospects of overcoming the health crisis, the high uncertainty surrounding the timing and the intensity of recovery in the period ahead further renders macroeconomic developments difficult to assess.
• In the current context, the banking sector has a key role in financing the real economy in order to cushion the impact of the COVID-19 crisis, with measures for easing macroprudential requirements being widely adopted across the European Union.

Pursuant to:

• the provisions of Art. 3, para. (1) letters b), e) and i) and the provisions of Art. 4, para. (1) of Law No. 12/2017 on the macroprudential oversight of the national financial system,

The National Committee for Macroprudential Oversight has issued this recommendation:

In view of the developments in loans to the private sector, as well as of the significant uncertainties surrounding the economic and financial developments at national and international level generated by the spread of COVID-19 infections, the National Bank of Romania is recommended to maintain the countercyclical buffer rate at 0 (zero) percent. Moreover, the NBR is recommended to further monitor developments in the economy and lending at aggregate and sectoral levels, with a focus on the impact of COVID-19 pandemic on household and corporate financing by credit institutions.