NCMO meeting of 17 October 2024

This year’s third meeting of the General Board of the National Committee for Macroprudential Oversight (NCMO) was held on 17 October 2024.
During the meeting, Board members assessed analyses and adopted measures concerning macroprudential policy and systemic risk, namely: (i) examining the regular analysis on the recalibration of the countercyclical capital buffer, (ii) evaluating the regular analysis on the identification of systemically important institutions, (iii) reviewing the results of the regular analysis on the systemic risk buffer, and (iv) not applying through voluntary reciprocity the macroprudential policy measures adopted by Italy and Denmark.
In addition, the NCMO General Board was informed of: (i) the impact of credit institutions’ funding plans on the flow of credit to the real economy, (ii) the systemic risks to financial stability identified by NCMO member authorities as per their specific area of competence, (iii) the characteristics and risks associated with banking sector exposures to the government sector, (iv) the systemically important non-financial corporations in Romania, and (v) the calendar for national measures adopted pursuant to ESRB recommendations.
The NCMO General Board approved NCMO Recommendation No. R/4/2024 on the countercyclical capital buffer in Romania. The buffer rate is kept at 1 percent, amid the persistence of systemic risks, especially from a geopolitical perspective, as well as of tensions surrounding macroeconomic equilibria. Key liquidity and solvency indicators in the local banking sector stand above the European average and allow the build-up of capital buffers, given the policy of aligning to the overall European tendency of using macroprudential instruments to enhance the resilience of credit institutions.
The NCMO recommendation and decisions were unanimously approved by the NCMO General Board.
The NCMO 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 macroprudential 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.