The National Committee for Macro-prudential Supervision (CNSM) has scheduled an extraordinary meeting today, its first of this year. It was called for by the National Bank of Romania (BNR), which proposed a discussion on OUG 114/2018, according to Mediafax. The Finance minister Eugen Teodorovici and National Bank of Romania governor Mugur Isarescu will meet for the first time this year to discuss the tax on banks’ financial assets.
This tax varies between 0.1 percent and 0.5 percent, increasing every 0.5 percentage point of the ROBOR average over 2 percent quarterly.
Currently, the CNSM General Council is made up of three members of the BNR and two of the Financial Supervisory Authority (ASF), according to the institution’s website: Mugur Isarescu (BNR Governor and CNSM President), Florin Georgescu (First Deputy Governor of the National Bank of Romania) Liviu Voinea (BNR Deputy Governor, Financial Stability Coordinator), Leonardo Badea (ASF President) and Elena Doina Dascălu (First Vice-President of ASF).
The three representatives of the Public Finance Ministry (MFP) are added to the six: Eugen Orlando Teodorovici (Minister), Attila Gyorgy (State Secretary responsible for promoting the legal framework for financial markets) and Tiberiu Valentin Mavrodin (State Secretary in charge of Management Coordination treasury and public debt).
Also, Petre Tulin, the General Manager of the Bank Deposit Guarantee Fund, attends the meetings of the General Council of the CNSM, but has no voting rights.
Teodorovici said last week that he would have wanted an ordinary meeting, as it would be the first CNSM meeting this year, and that the Ministry would also propose other topics on the agenda.
“A topic was added to the agenda by the National Bank – Ordinance 114. On our part, besides the subject, there are still another eight or nine very important topics – from the way the National Bank, alongside of the other banks are involved in this fixation of ROBOR and the way in which lending to individuals is done. Here (on the last topic mentioned above) will have to find a very clear answer to the question ‘Why has credit lending for mortgages been limited if the government supports or wishes to support the construction area?’”, said Teodorovici.
The minister did not say what he meant about the limitation, but since the beginning of this year the debt ratio has been limited. For consumer and mortgage loans, the leverage ratio is at most 40 percent of the net income for RON and 20 percent for foreign currency loans both for the banks and for IFNs. The exception is the purchase of the first dwelling, which will have a maximum leverage rate of 5 percent higher, respectively 45 percent and 25 percent. Previously, when when indebtedness was not limited, the market average was 55-60 percent, but it could reach 80 percent.