2005年-世界发展银行全球_Capital_Markets_and_Non-bank_Financial_Institutions_in_Romania___Assessment_of_Key_Issues_and_Recommendations_for_Development_112页_2mb

Summary of Capital Markets and Non-bank Financial Institutions in Romania

Core Content

This document provides an assessment of the development status and challenges of capital markets and non-bank financial institutions (NBFIs) in Romania, particularly in the context of its approach to aligning with European Union (EU) financial standards. It outlines key issues and policy recommendations aimed at enhancing the financial sector's infrastructure and regulatory framework.

Main Objectives

• To evaluate the development of capital markets and NBFIs in Romania.
• To identify structural and regulatory challenges.
• To propose policy reforms and action plans for improving financial sector development.

Key Issues and Challenges

Macroeconomic and Sectoral Environment

• Romania's financial sector, including capital markets and NBFIs, is less developed compared to EU-15 and CE-3 countries.
• The macroeconomic environment has shown improvement, but most constraints on NBFIs and capital markets are structural.
• Challenges include:
  • Perceptions of political and investment risk.
  • Corruption and a weak judiciary.
  • Weak corporate governance.
  • Limited presence of institutional investors.
  • Narrow supply of financial instruments and insufficient yield curve benchmarks.
  • Uneven tax incentives and inadequate use of deductibility.
  • Perceptions of complexity and cost in securities issuance.
  • Restrictions on the size of securities issues and investment policies.

Capital Market Development

• Financial assets in Romania at the end of 2003 were approximately US$22.1 billion, or 39% of GDP.
• Banks account for 84% of the country's financial assets.
• Capital market indicators lag behind EU-15 countries, with insurance penetration at only 1% compared to 3-4% in CE-3 countries.
• The development of corporate bonds, government bonds, and municipal bonds is limited due to legal and regulatory constraints.

NBFIs Development

• Insurance penetration is low but growing.
• Pension funds and mutual funds are underdeveloped, with assets under management (AUM) in Romania being significantly lower than in EU-15 and CE-3 countries.
• Leasing and factoring sectors are in early stages of development.

Key Policy Recommendations

Legal and Regulatory Reforms

• Adoption of the new Capital Market Law aligned with EU directives.
• Implementation of secondary legislation and regulations.
• Legal separation of life and non-life insurance operations.
• Capital requirements adjustments to better reflect risk coverage.
• Regulatory framework for financial conglomerates.
• Legal reform for municipal and corporate bonds to support their development.

Capacity Building

• Conduct functional/capacity assessment reviews for supervisory authorities.
• Develop infrastructure, staffing, and skills for regulatory bodies.
• Improve internal reporting, enforcement, and transparency.

Corporate Governance

• Revise company law to strengthen joint stock companies and supervisory boards.
• Require public disclosure of significant shareholders and control relationships.
• Align financial reporting with international standards.
• Develop a corporate governance code and an institute of directors.

Market Infrastructure

• Introduce a centralized registry for all securities.
• Implement RTGS (Real-Time Gross Settlement) system to improve payment and settlement infrastructure.
• Develop standardized master repurchase agreements.
• Enhance transparency in the government securities market through issuance calendars and improved auction mechanisms.

Equity Mobilization and Credit Enhancement

• Develop a mortgage default insurance scheme to support higher LTV mortgages.
• Introduce mortgage-backed securities (MBS) with partial credit guarantees.
• Explore public-private partnership (PPP) frameworks to mobilize private investment in infrastructure.
• Establish a credit bureau to enhance credit information availability.
• Consider an alternative trading system (ATS) to improve market activity.

Institutional Development

• The government is working on a comprehensive legislative package for housing finance, including mortgage loan, bond, and securitization laws.
• A national credit rating agency is recommended to be established, with ties to international agencies.
• Infrastructure for property and company registries needs to be upgraded to support financial activities.

Conclusion

Romania has made progress in aligning its financial sector with EU standards, but significant structural reforms and capacity building are still required to develop its capital markets and NBFIs. The focus should remain on improving legal and regulatory frameworks, enhancing corporate governance, and strengthening market infrastructure to attract investment and support economic growth.