Law No. 93 on Non-Banking Financial Institutions

Romania

(enacted in 2009)

Law No. 93 on Non-Banking Financial Institutions was enacted to make regulation of NBFIs in Romania more consistent with Company Law No. 31 and Ordinance No. 99 on Credit Institutions and Capital Adequacy, and to remove some legal limitations on micro-financing companies.

This law addresses, among others, the following issues:

  • Establishes that NBFIs can offer mortgage loans & micro-financing, undertake certain foreign exchange operations, and issue credit cards;
  • Determines under which criteria National Bank of Romania (NBR) can qualify an activity as authorized lending activity;
  • Establishes that NBR is in charge of authorization and registration of NBFIs, including a special register where NBFIs are required to report to NBR’s credit information bureau;
  • Allows NBFIs to manage public funds granted as microcredit funds by governmental agencies;
  • Specifies that only NBFIs, credit institutions, and financial institutions regulated by Ordinance No. 99/2006 can acquire credit portfolios;
  • Regulates confidentiality of personal information acquired from clients;
  • Allows NBFIs to pledge own shares for its debts and grant loans secured by pledges over its shares;
  • Increases types of legal entities with which NBFIs can merge; and
  • Requires NBFIs to comply with consumer protection legislation.

This law repeals, among others, the following regulations:

  • Law No. 240/2005 on micro-financing companies;
  • Part I, Title I of Ordinance No. 28/2006 on NBFIs; and
  • Ordinance No. 200/2002 on mortgage loan companies.

DISCLAIMER: Due to the fact that an English translation was unavailable for this law, information for this summary has been taken from secondary sources and not from review of the actual legal text.