Government Emergency Ordinance (GEO) No. 98 on Supplementary Supervision of Credit Institutions

Romania

(enacted in 2006)

Government Emergency Ordinance (GEO) No. 98 on Supplementary Supervision of Credit Institutions regulates the supplementary supervision of regulated legal entities in Romania that are part of a financial conglomerate to ensure financial stability and protect depositors, insurance policy holders and investors.

The ordinance is structured as follows:

  • Chapter I Scope of application and definitions;
  • Chapter II Identifying a financial conglomerate;
  • Chapter III Supplementary supervision:
    • Scope of supplementary supervision;
    • Financial position;
    • Capital adequacy;
    • Risk concentration and intra-group transactions; and
    • Internal control mechanisms and risk management processes;
  • Chapter IV Measures to facilitate supplementary supervision:
    • Competent authority responsible for exercising supplementary supervision;
    • Criteria for appointment of coordinator;
    • Tasks of coordinator;
    • Cooperation and exchange of information between competent authorities;
    • Exchange of information;
    • Access to information;
    • Verification of information;
    • Mixed financial holding companies;and
    • Enforcement measures and sanctions;
  • Chapter V Relations with third countries:
    • Parent undertakings from third countries; and
    • Cooperation with third-country competent authorities;
  • Chapter VI Final provisions.