Government Emergency Ordinance (GEO) No. 99 on Credit Institutions and Capital Adequacy

Romania

(enacted in 2006)

Government Emergency Ordinance (GEO) No. 99 on Credit Institutions and Capital Adequacy regulates all credit institutions and financial investment companies and lays down the principles concerning their prudential supervision, as well as the supervision of payment systems and financial instruments settlement systems in Romania. According to Part II of this ordinance, credit institutions may be set up and may operate as banks, credit co-operative organizations, savings banks for housing, mortgage loan banks, and electronic money institutions.

This ordinance repeals: (i) Law No. 58 on Banking Activity and its Amendments; (ii) GEO No. 97 on credit co-operative organizations; and (iii) other regulations as specified in Article 422 of this regulation.

The ordinance is organized as follows:

  • Part I Common Provisions for Credit Institutions: 
    • Title I General Provisions: includes minimum requirements for taking up and pursuit of business, and authorization & treatment of credit institutions;
    • Title II Operational Requirements: includes organization and management, banking secrecy and the relationship with clients, risk mitigation requirements, financial statements and audit, and disclosure by credit institutions; and
    • Title III Supervision and Disclosure Requirements for the National Bank of Romania: includes supervision of credit institutions & branches, exchange of information and professional secrecy, disclosure by the National Bank of Romania, supervision and power of sanction, special procedures & manners of appeal, and provisions applicable to financial investment companies.
  • Part II Specific Provisions:
    • Title I Banks;
    • Title II Savings Banks for Housing: includes specific provisions on authorization and withdrawal of authorization, specific requirements for carrying out activity, specific regulations and measures, and promotion of collective saving and lending for housing;
    • Title III Mortgage Loan Banks;
    • Title IV Electronic Money Institutions;
    • Title V Credit Co-Operative Organizations: includes authorization of credit co-operative organizations, specific provisions on establishment and operation, specific provisions on operational requirements, supervision of credit co-operative organizations, and bankruptcy of central bodies; and
    • Title VI Payment Systems.
  • Part III Infringements and Transitory and Final Provisions.

Law No. 227 approving Ordinance No. 99 on Credit Institutions and Capital Adequacy can be found under “Related Laws/Regulations.”