Friday, 28 September, the Governor of the National Bank of Romania, Mugur Isărescu, and the chairperson of the National Securities Commission (CNVM), Gabriela Anghelache, signed an agreement on financial system supervision.
The two parties - the central bank of Romania and the National Securities Commission - agreed to co-operate in optimizing supervision. The signing of the Agreement lays the ground for enhanced supervision of the financial market in our country.
Each authority will further function independently within its own scope: banking and securities and stock exchange respectively.
The NBR and CNVM commit themselves to carry out adequate and efficient supervision, mainly by coordinating the measures and actions taken by the two authorities, in order to avoid systemic crises and to develop a competitive and nondiscriminatory environment for all financial market participants.
The agreement signed on Friday is the result of the growth of the financial system in Romania in recent years, which determined interlinkages at both institutional and operational level, as well as that of the products.
The co-operation between the two institutions will contribute to the transparency, stability and integrity as well as to the well-functioning of the markets, by preventing the overlapping of supervision activities and improving supervision, as some areas in the Romanian financial system are left out of the scope of any of the above mentioned authorities.
The signing parties commit themselves to take complex joint actions meant to improve their activity regarding the licensing, regulation and supervision of the financial system.
Meetings at management level of the two institutions will be held at least once a year, with the view of solving the general issues of the financial system. To achieve this goal, a co-ordination team of representatives of both authorities (decision-makers in the field of licensing, regulation and supervision) will be set up within 90 days at most.
The supplied data and information, as well as the measures taken when implementing the provisions of the agreement are considered confidential. They may be made public only under a special procedure to be established by the two authorities. On a mutual-agreement basis, criteria and conditions for consulting and exchange of information can be set up when co-operating with other institutions such as: the Ministry for Public Finance, the Ministry of Internal Affairs and the Court of Audit. No provision of the agreement may jeopardize the rights and duties of either authority.
The agreement has been concluded for an unlimited period of time, and may be terminated only at the explicit request of one or both parties. At the same time, the agreement may be extended by recruiting or adherence of other institutions authorized by law to regulate, license and supervise the financial system. Thus, consolidated supervision of the financial market, in accordance with the practices in the EU and other developed countries, is established in Romania too, and can develop flexibly as the complexity of the financial sector grows.