The National Committee for Macroprudential Oversight (NCMO) was established pursuant to Law No.12/2017 on the macroprudential oversight of the national financial system. The adoption of this law ensures (i) the implementation of the ESRB Recommendation on the macro-prudential mandate of national authorities (ESRB/2011/3), (ii) the legal framework for implementing the ESRB Recommendation on intermediate objectives and instruments of macro-prudential policy (ESRB/2013/1) and (iii) the transposition of provisions concerning the implementation of macroprudential instruments set forth in Sections I and II, Chapter 4, title VII of Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms supplemented by Directive 2019/878/EU of the European Parliament and the Council of 20 May 2019 amending Directive 2013/36/EU with regard to exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures.

The NCMO became operational on 11 April 2017, within the 30-day time frame set by law, when the first committee meeting was organised and the General Board members were appointed. The NCMO is an interinstitutional cooperation structure without legal personality, comprising representatives of the National Bank of Romania (NBR), the Financial Supervisory Authority (FSA) and the Government. The director of the Bank Deposit Guarantee Fund participates in the General Board meetings as an observer.

The NCMO’s mission is to coordinate the macroprudential oversight of the national financial system, by setting the macroprudential policy and the appropriate instruments for its implementation.

The fundamental objective of the National Committee for Macroprudential Oversight is to contribute to safeguarding financial stability, also by strengthening the financial system’s resilience and by containing the build-up of systemic risks, thereby ensuring a sustainable contribution of the financial system to economic growth.

In achieving its fundamental objective, the NCMO is operationally independent.

Once the NCMO became operational, the tasks of the National Committee for Financial Stability (CNSF) in the field of financial stability and macroprudential policies, as well as those related to financial crisis management, were taken over by the newly-established entity. Specifically, the tasks concerning the adoption of recommendations and advisory opinions for the implementation of the macroprudential policy¹ were transferred to the NCMO. All recommendations on implementing the macroprudential measures adopted by the NCFS, as an inter-institutional cooperation entity, prior to the NCMO establishment, remain valid if they are not contrary to the recommendations subsequently issued by the NCMO.

The National Bank of Romania (NBR), the Financial Supervisory Authority (FSA) and the Government, in their capacity as NCMO members, may put forward, during the NCMO General Board meetings, analyses and lines of action in the field of financial stability and macroprudential policy, according to their responsibilities. The warnings and recommendations issued by the NCMO aim to mitigate the risks and vulnerabilities identified in the national financial system and may be addressed to the NBR and the FSA, in their capacity as national financial supervisory authorities at a sectoral level. At the same time, the NCMO may issue recommendations addressed to the Government for the purpose of safeguarding financial stability.

The macroprudential measures adopted by the National Bank of Romania regarding the implementation of capital buffers

¹ Pursuant to legal provisions (Art. 1261 of Government Emergency Ordinance No. 99/2006 on credit institutions and capital adequacy, as approved, amended and supplemented by Law No. 227/2007, as subsequently amended and supplemented), during the transition period until the interinstitutional structure for coordinating the macroprudential oversight of the national financial system becomes operational, the NCSF adopted recommendations with regard to the capital buffers that may be applied to credit institutions.