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New regulation for bringing the banking/capital market laws in line with the EU law

With a view of bringing the banking/capital market legislation in line with the EU law, the Order no. 82/2011 regarding the approval of the Regulation no. 20/11/2011 issued by National Bank of Romania and Romanian National Securities Commission (the “Order no. 82/2011”) has been published in the Official Gazette no. 800 – Part I of 11 November 2011.

The latter amends and supplements the Regulation no. 14/19/2006 issued by National Bank of Romania and Romanian National Securities Commission regarding the treatment of credit risk by credit institutions and investment firms according to the standard approach [in Romanian, “Regulamentul nr. 11 din 21 octombrie 2011 pentru modificarea si completarea Regulamentului Bancii Nationale a Romaniei si al Comisiei Nationale a Valorilor Mobiliare nr. 14/19/2006 privind tratamentul riscului de credit pentru institutiile de credit si firmele de investitii potrivit abordarii standard].

Order no. 82/2011 transposes certain provisions of the Directive 2010/76/EU of the European Parliament and of the Council of the EU that amends the Directives 2006/48/EC and 2006/49/EC regarding capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies.

The main amendment refers to the risk weight established at 20 % which will be assigned to exposures towards regional government and local authority. The exposure must be addressed and financed in domestic currency.

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