A new National Committee for Macroprudential Supervision that is about to be created, to reunite representatives of the National Bank of Romania, the Financial Supervisory Authority and the Ministry of Public Finance, will be responsible with the coordination process of macroprudential supervision at national level, according to a draft emergency ordinance put up for public discussions.
Among the responsibilities of the new committee will be the identification of risks to financial stability, the issuance of recommendations and warnings to prevent or diminish risks and the monitoring of their implementation, as well as drawing up a macroprudential policy strategy.
Moreover, the committee will coordinate the management of financial crises through the identification of the necessary measures to be taken so as to reduce the risk of contamination in the case of a systematic impact of the possible difficulties the participants in the financial market will be compelled to deal with.
'The addressees of the recommendations will be either the microprudential financial supervisory authorities or the Romanian Government. Following such recommendations or warnings, the addressees will have to adopt the recommended measures or to operate in the sense of reducing the risks about which they received the warning. If not, they will have to answer in relation to their lack of action,' reads the substantiation note.
The draft also provides for the obligation of the independence of the National Bank of Romania being preserved, as provided for unde Art. 130 of the Treaty on the Functioning of the European Union, with regard to decisions concerning macroprudential policy.
Decision making inside the National Committee for Macropudential Supervision will be entrusted to a general board of nine members, namely the governor (the chair of the board), the first deputy governor, two deputy governors and the chief economist of the Central Bank, the chairman and the first deputy chairman of the Financial Supervisory Authority, and two representatives of the Government named by the prime minister.
Moreover, considering the responsibilities of the Bank Deposit Guarantee Fund in the process of solving the situation of such credit institutions that are found in distress, the manager of these institutions will participate in the meetings of the committee, without being entitled to vote.
'This structure of the decision making body is meant to ensure compliance with the recommendations CERS/2011/3 European Systemic Risk Board, according to which the central bank must play a major role in what regards the macroprudential policy. Given that every member of the general board is entitled to vote, no other decision of the BNR to the contrary can be adopted.'
The National Committee for Macroprudential Supervision and the members of the general board will not ask for or accept any instructions from any authority, institution or public or private entity.
According to the recommendations of the European Systemic Risk Board, the responsibility for the macroprudential policy can only be entrusted to a single institution or to a board made up of the authorities whose actions have a significant impact on financial stability at a national level. AGERPRES