Source: http://www.cnsmro.ro/en/politica-macroprudentiala/lista-recomandarilor/
Timestamp: 2019-04-23 10:36:07+00:00

Document:
the objective of the countercyclical capital buffer (CCB) is to improve the banking sector’s resilience to potential losses generated by excessive credit growth. The CCB is built up in periods of excessive credit growth as an add-on to the capital conservation buffer and may be released during credit crunches in order to absorb losses. The countercyclical buffer rate is expressed as a percentage of total risk exposure amount of credit institutions with credit exposures in Romania, shall range between 0 percent and 2.5 percent and shall be calibrated in steps of 0.25 percentage points or multiples of 0.25 percentage points. Where justified, a CCB rate higher than 2.5 percent of total risk exposure amount may be set.
with regard to household lending, measures have been taken to limit the indebtedness level (the DSTI ratio).
Having regard to the fact that total indebtedness currently remains below the alert threshold and setting a countercyclical buffer rate above 0 (zero) percent is, thus, not necessary, the National Bank of Romania is recommended to maintain the countercyclical buffer rate at 0 percent.
The National Bank of Romania is recommended, while implementing NCMO Recommendation No. R/9/2017, to make the semi-annual re-assessment and set the 12-month reference interval for the average values of the indicators based on which the systemic risk buffer is determined, as well as the level at which credit institutions apply this buffer, namely on individual and/or consolidated level.
The National Bank of Romania is recommended to impose, starting 1 January 2019, a capital buffer for other systemically important institutions (O-SII buffer), on an individual or consolidated basis, as applicable, calculated based on the total risk exposure amount for all the credit institutions identified as having a systemic nature based on the data reported as at 30 June 2018, as follows: (i) 2 percent for Banca Comercială Română S.A. (consolidated level), Raiffeisen Bank S.A. (consolidated level), Banca Transilvania S.A. (consolidated level), and CEC Bank S.A. (individual level), (ii) 1.5 percent for OTP Bank Romania S.A. (consolidated level) and (iii) 1 percent for UniCredit Bank S.A. (consolidated level), BRD-Groupe Société Générale S.A. (consolidated level), Alpha Bank România S.A. (individual level) and Garanti Bank S.A. (individual level).
Having regard to: (1) the provisions of Art. 3, para. (2), letter b) and para. (3) of Law No. 12/2017 on the macroprudential oversight of the national financial system and the provisions of NCMO Regulation No. 2/2017 on the methodology and procedure used for setting capital buffers and the scope of these instruments, namely Articles 4-9 on the countercyclical capital buffer, as well as Art. 1 on the applicability of capital buffers, (2) the objective of the countercyclical capital buffer (CCB) to improve the banking sector’s resilience to potential losses generated by excessive credit growth. The CCB is built up in periods of excessive credit growth as an add-on to the capital conservation buffer and may be released during credit crunches in order to absorb losses. The countercyclical buffer rate, expressed as a percentage of total risk exposure amount of credit institutions with credit exposures in Romania, shall range between 0 percent and 2.5 percent and shall be calibrated in steps of 0.25 percentage points or multiples of 0.25 percentage points. Where justified, a CCB rate higher than 2.5 percent of total risk exposure amount may be set. Whereas: Regarding the countercyclical capital buffer, it should be noted that: – the analysis on the excessive growth of credit and private indebtedness showed that total indebtedness (non-financial corporations and households) further stayed below the alert threshold that signals excessive credit growth; however, the differential between the value of the alternative indicator and the signalling threshold narrowed since the previous analysis, reaching -0.03 percentage points in March 2018 and 0.93 percentage points in June 2018 respectively versus -0.45 percentage points in December 2017; – at sectoral level, there are still signals indicating the build-up of vulnerabilities related to household lending; – residential property prices continued to increase at a fast pace, their annual growth rate coming in at 6.43 percent in nominal terms in March 2018 (1.41 percent in real terms over the same period), standing above the 6 percent alert threshold recommended by the European Commission, yet further below the 10 percent signalling threshold. At the same time, the deviation of residential property prices from their long-term trend remains above the alert threshold. Pursuant to: – the provisions of Art. 3, para. (1), letters b), e) and i) and the provisions of Art. 4 para. (1) of Law No. 12/2017 on the macroprudential oversight of the national financial system, The National Committee for Macroprudential Oversight has adopted this recommendation: Having regard to the fact that total indebtedness currently remains below the alert threshold and setting a countercyclical buffer rate above 0 (zero) percent is, thus, not necessary, the National Bank of Romania is recommended to maintain the countercyclical buffer rate at 0 percent and to monitor developments in household indebtedness.
In its meeting of 21 May 2018, the NCMO General Board approved the Overall Macroprudential Strategy Framework of the National Committee for Macroprudential Oversight.
The National Bank of Romania and the Financial Supervisory Authority are recommended to implement, where applicable, the macroprudential instruments for achieving the intermediate objectives included in the Overall Macroprudential Strategy Framework of the National Committee for Macroprudential Oversight, according to the Annex to this Recommendation. The Government is recommended to support the NCMO’s macroprudential policy for the purpose of safeguarding financial stability.
Art. 3, para. (1) and para. (2), as well as Art. 4, para. (1) of Law No. 12/2017 on the macroprudential oversight of the national financial system, The National Committee for Macroprudential Oversight has adopted this recommendation: Having regard to the fact that total indebtedness currently remains below the alert threshold and setting a countercyclical buffer rate above 0 (zero) percent is, thus, not necessary, the National Bank of Romania is recommended to maintain the countercyclical buffer rate at 0 percent and to monitor developments in household indebtedness.
the provisions of Art. 1, para. (2) and Art. 2, para. (1) of Law No. 12/2017 on the macroprudential oversight of the national financial system, the persistence of structural imbalances regarding the soundness of non-financial corporations in Romania, which entail notable negative consequences on the stability of the Romanian financial system, NCMO Recommendation No. R/6/2017 to the Government, via the Ministry of Public Finance, and the National Bank of Romania to make an in-depth analysis of these challenges. Pursuant to: the provisions of Art.3, para. (1), let. e), together with those of Art. 4, para. (1), let. b) of Law No. 12/2017 on the macroprudential oversight of the national financial system, The General Board of the National Committee for Macroprudential Oversight has issued this recommendation:The Government is recommended to assess the opportunities to improve the regulatory framework governing non-financial corporations, after having consulted with businesspersons and social partners.
The Government is recommended to assess the opportunity of recalibrating the “First Home” programme from a social perspective by revising the requirements to access this programme while preserving a sustainable level of indebtedness.

References: Art. 3
 Art. 1
 Art. 3
 Art. 4

Art. 3
 Art. 4
 Art. 1
 Art. 2
 Art.3
 Art. 4