Government amends laws on NBM and financial institutions
The Law on the National Bank and Financial Institutions must be brought in line with the international banking standards. In this connection the Government approved amendments, offered by the NBM, on Wednesday.
The amendments concerns the removal of the non-conformity between the notions “bank” and “financial institution” and the specification that banks have the right to receive deposits both from physical and juridical persons, and non-bank financial institutions – only from juridical persons.
The banking capital must constitute not less than 100 million lei that meets the European standards (5 million euros). The banks must constantly maintain the equity size, which is necessary for conducting bank operations.
Article 6 of the Law on Financial Institutions fixes that the possession of 5% of shares of any bank is a considerable share in its capital. Earlier this share had to constitute 10%.
Provisions, which envisaged the NBM’s issuance of permissions for additional financial activities and permissions of other categories, were removed. Thus, from the viewpoint of the regulatory action, this reduces the number of licenses, granted to banks, and a considerable decrease of the banks’ costs, connected with the receipt of new licenses for additional financial activities.
At the same time, amendments to Article 75 of the Law on the NBM and Article 38 of the Law on Financial Institutions gave the right to depart from the need to suspend the activities of banks, foreign currency exchange offices and other persons, acting on the basis of the NBM’s licenses (permissions), only by a court’s decision. These amendments say that the NBM may apply sanctions without recurring to judicial instances. // Infotag
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