Opinion of the European Central Bank of 3 June 2013 on the macro-prudential oversight of the national financial system (CON/2013/39)
Date: 2013-06-03
Institutions: European Central Bank
Subjects: Romania, financial stability, financial supervision, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 3 June 2013  

on the macro-prudential oversight of the national financial system 

(CON/2013/39) 

Introduction and legal basis 

On 3 May 2013, the European Central Bank (ECB) received a request from Banca Naţională a României 

(BNR) for an opinion on a draft emergency ordinance on the macro-prudential oversight of the national 

financial system (hereinafter the ‘draft emergency ordinance’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning  of  the  European  Union and the  third  and  sixth  indents  of  Article 2(1)  of  Council  Decision 

98/415/EC  of  29 June  1998  on  the  consultation  of  the  European  Central  Bank  by  national  authorities 
regarding  draft  legislative  provisions1,  as  the  draft  emergency  ordinance  relates  to  Banca  Naţională  a 

României and rules applicable to financial institutions insofar as they materially influence the stability of 

financial  institutions  and  markets.  In  accordance  with  the  first  sentence  of  Article 17.5  of  the  Rules  of 

Procedure of the European Central Bank, the Governing Council has adopted this opinion. 

1.  

Purpose of the draft emergency ordinance 

The  draft  emergency  ordinance  establishes  the  National  Committee  for  Macro-prudential  Oversight 

(hereinafter the ‘Committee’) mandated to coordinate macro-prudential oversight of the national financial 

system  by  defining  macro-prudential  policy  and  determining  the  appropriate  instruments  for  its 
implementation2.  The  Committee’s  primary  objective  is  to  contribute  to  the  safeguarding  of  financial 

stability by strengthening the resilience of the financial system and decreasing the build-up of systemic 

risks,  thereby  ensuring  a  sustainable  contribution  of  the  financial  sector  to  economic  growth.  The 

Committee  is  also  entrusted  with:  (a)  coordinating  financial  crisis  management;  (b)  supervising 

implementation  of  European  Systemic  Risk  Board  (ESRB)  recommendations  and  measures  taken  at 

national level as a follow-up to ESRB warnings; (c) collaborating and exchanging information with the 

micro-prudential supervisory authorities, relevant authorities in the other Member States and the ESRB. 

1  
2  

OJ L 189, 3.7.1998, p. 42. 
Currently,  in  Romania,  macro-prudential  policy  at  national  level  is  not  explicitly  regulated  in  national  legislation. 
Oversight  of  the  national  financial  system  is  performed  by  BNR  (for  the  credit  institutions  sector)  and  the  Financial 
Supervisory  Authority  (for  the  capital  market,  insurance  and  private  pensions  sector).  The  legislation  governing  the 
activity of the two national supervisory authorities provides for their respective task of maintaining the financial stability 
of  the  respective  sectors.  No  single  authority  is  entrusted  with  the  exclusive  competence  of  safeguarding  the  overall 
stability of the financial system. 

 
 
 
 
                                                 
ECB-PUBLIC 

The  Committee  is  an  entity  without  legal  personality  designed  as  a  structure  for  inter-institutional 
cooperation3. It consists of representatives from BNR, the Financial Supervisory Authority (FSA) and the 

Ministry  of  Public  Finances.  It  has  the  following  governing  bodies:  the  General  Board,  a  technical 

committee  on  systemic  risk,  a  technical  committee  on  financial  crisis  management  and  a  Secretariat 

provided by BNR. 

BNR’s  Governor  is  the  president  of  the  Committee,  as  well  as  the  chairperson  of  the  General  Board, 

which will include two more representatives of BNR’s executive management, the FSA’s chairperson and 

the  Minister  for  Public  Finance. The  chairperson  of  the  Bank  Deposit  Guarantee  Fund  also  attends  the 

meetings, but has no voting right. 

Where  a  potential  risk  to  financial  stability  is  identified  based  on  the  assessments  conducted,  the 

Committee may issue recommendations and warnings to national micro-prudential supervisory authorities 

for  a  policy  response.  It  may  also  issue  recommendations  to  the  Government  for  legislative  initiatives 

aimed at safeguarding financial stability. The President of the Committee submits the Committee’s annual 

report to Parliament by 30 June of the following year. 

2. 

General observations 

The consulting authority asked for an ECB opinion on an urgent basis4. The ECB draws the consulting 

authority’s  attention  to  the  second  sentence  of  Article  4  of  Decision  98/415/EC  pursuant  to  which  the 

ECB  must  be  consulted  ‘at  an  appropriate  stage’  in  the  legislative  process.  This  implies  that  the 

consultation should take place at a point in the legislative process that affords the ECB sufficient time to 

carefully  examine  the  draft  legislative  provisions  and  to  adopt  its  opinion  in  the  required  language 

versions  and  which  also  enables  the  relevant  national  authorities  to  take  the  ECB’s  opinion  into 

consideration before the draft legislative provisions are adopted. 

3. 

Specific observations 

3.1  The  Committee’s  tasks  include  identifying  systemically-relevant  financial  institutions  and  any 
other  tasks  related  to  macro-prudential  oversight,  as  specified  in  Union  legal  acts5.  Under  the 

proposed directive on access to the activity of credit institutions and the prudential supervision of 
credit institutions and investment firms6 (hereinafter the ‘proposed directive’), Member States are 

to designate a public authority that is responsible for setting the countercyclical buffer rate for that 
Member  State7.  Such  a  designated  authority  may  also  be  attributed  the  task  of  identifying 

3  
4  

5  
6  

7  

Article 1 of the draft emergency ordinance. 
Due to the deadline of 1 July 2013 for the implementation of Recommendation ESRB/2011/3 of the European Systemic 
Risk Board  on the macro-prudential mandate of national authorities (OJ C 41, 14.2.2012, p. 1). 
Article 3(1) of the draft emergency ordinance. 
Proposal for a Directive of the European Parliament and of the Council on the access to the activity of credit institutions 
and  the  prudential  supervision  of  credit  institutions  and  investment  firms  and  amending  Directive  2002/87/EC  of  the 
European Parliament and of the Council on the supplementary supervision of credit institutions, insurance undertakings 
and 
at: 
in 
http://register.consilium.europa.eu/pdf/en/13/st07/st07746.en13.pdf). 
Article 126(1) of the proposed directive. 

conglomerate 

(2011/0203 

investment 

available 

financial 

(COD) 

firms 

a 

2 

 
 
                                                 
ECB-PUBLIC 

systemically important institutions8, setting a systemic risk buffer9 or taking specific measures to 
address  macro-prudential  concerns10.  The  latter  tasks  may  also  be  attributed  to  the  competent 

authority. The ECB understands that the draft emergency ordinance may have to be reviewed upon 
entry  into  force  of  the  proposed  directive  and  proposed  regulation11  to  determine  whether  the 

Committee  is  a  designated  authority  and  to  reflect  the  tasks  laid  down  thereof  for  designated 

authorities.  

3.2  The  ECB  welcomes  the  express  provisions  of  the  draft  emergency  ordinance  stating  BNR’s 
independence with regard to macro-prudential policy decisions12 and the institutional independence 
of the Committee13, in line with Article 130 of the Treaty, 

3.3  This  opinion  does  not  prejudice  the  conclusions  of  the  follow-up  assessment  of  the  above 

mentioned  recommendation,  which  the  ESRB  will  issue  in  accordance  with  Article  17  of 

Regulation  (EU)  No  1092/2010  of 

the  European  Parliament  and  of 

the  Council  of 

24 November 2010  on  European  Union  macro-prudential  oversight  of  the  financial  system  and 
establishing a European Systemic Risk Board14. 

This opinion will be published on the ECB’s website.  

Done at Frankfurt am Main, 3 June 2013. 

[signed] 

The President of the ECB 

Mario DRAGHI 

8  
9  
10 

Article 124a of the proposed directive. 
Article 124d of the proposed directive. 
Article 443a of the proposal for a regulation of the European Parliament and of the Council on prudential requirements 
for 
at: 
firms 
http://register.consilium.europa.eu/pdf/en/13/st07/st07747.en13.pdf). 
See footnote 10. 

(2011/0202 

institutions 

investment 

available 

(COD) 

credit 

and 

11  
12    Article 13 of the draft emergency ordinance. 
13  

Pursuant to Article 2(2) of the draft emergency ordinance, the Committee and the General Board members may not seek 
or take instructions from public authorities or institutions or any public or private bodies. 
OJ L 331, 15.12.2010, p. 1. 

14  

3