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September 30, 2020

President Iohannis asks Parliament to re-examine bill establishing National Committee for Macroprudential Supervision

President Klaus Iohannis is asking Parliament to re-examine a bill on macroprudential supervision of the national financial system that provides for the establishment of a national committee in the area.

According to the request for re-examination submitted by Iohannis to Senate President Calin Popescu-Tariceanu, some provisions of the law on macroprudential supervision of the national financial system lack predictability and clarity.

Under the new bill, the National Committee for Macroprudential Supervision would be created as an a body for inter-organisational cooperation, without a legal personality, among the National Bank of Romania (BNR), the Financial Supervision Committee (ASF) and the Government. The main aim of the committee is contributing to the safeguarding of financial stability by consolidating the capability of the financial system to withstand shocks by diminishing the accumulation of systemic risks.

The bill says that in order for the necessary measures to prevent or diminish systemic risks nationwide, National Committee for Macroprudential Supervision would issue recommendations to the Government for the initialisation of legislative projects, as well as recommendations and warnings to BNR and ASF.

Iohannis argues that both the Romanian and the European legislation recommendations do not entail obligation to follow them. He adds that EU recommendations are non-binding acts that do not follow the judicial regime mentioned in the Constitution; consequently, their implementation in the national legislation has to take into account national regulations without being above the national legislation.

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