Press release on credit institutions
05.09.2001
Notice is hereby given that in accordance with the legal provisions in force the central bank is responsible for licensing, regulating the activity and supervising banks and credit co-operatives. Credit co-operatives shall be directly supervised by the National Bank of Romania only after being licensed.
The legal framework in place allows other entities functioning as commercial companies or having a different legal status to carry out activities specific to credit institutions. They allowed to take deposits or raise other reimbursable funds from the public and grant credits without being licensed by the relevant authorities.
The mushrooming of these entities resulted in the development of a pseudo-bank market. The best-known forms are mutual aid systems affiliated to commercial companies acting as administrators of the funds raised, systems such as "mutual aid funds" ("CAR"), or pyramid schemes.
The National Bank of Romania hereby draws the general public's attention to the fact that the activity of such entities is not subject to a specific licensing, regulation and supervision regime by a relevant authority. Thus, neither the Bank Deposit Guarantee Fund nor any other guarantee institution covers the risk attached to such investments, irrespective of the manner and purpose for which funds are raised.