Among the responsibilities of the new committee will be the identification of risks to financial stability, the issuance of recommendations and warnings to prevent or diminish risks and the monitoring of their implementation, as well as drawing up a macroprudential policy strategy.
Moreover, the committee will coordinate the management of financial crises through the identification of the necessary measures to be taken so as to reduce the risk of contamination in the case of a systematic impact of the possible difficulties the participants in the financial market will be compelled to deal with.
'The addressees of the recommendations will be either the microprudential financial supervisory authorities or the Romanian Government. Following such recommendations or warnings, the addressees will have to adopt the recommended measures or to operate in the sense of reducing the risks about which they received the warning. If not, they will have to answer in relation to their lack of action,' reads the substantiation note.
The draft also provides for the obligation of the independence of the National Bank of
Decision making inside the
Moreover, considering the responsibilities of the
'This structure of the decision making body is meant to ensure compliance with the recommendations CERS/2011/3 European Systemic Risk Board, according to which the central bank must play a major role in what regards the macroprudential policy. Given that every member of the general board is entitled to vote, no other decision of the BNR to the contrary can be adopted.'
According to the recommendations of the European Systemic Risk Board, the responsibility for the macroprudential policy can only be entrusted to a single institution or to a board made up of the authorities whose actions have a significant impact on financial stability at a national level.
(c)2014 Agerpres, Bucharest, Romania
Visit Agerpres, Bucharest, Romania at www1.agerpres.ro/english
Distributed by MCT Information Services