2009年-世界发展银行全球_Republic_of_Romania___Financial_Sector_Assessment_13页_777kb

2008 Romania Financial Sector Assessment (FSA) Summary

Core Content

The 2008 Financial Sector Assessment (FSA) for Romania summarizes the key findings and recommendations from the FSAP Update report, which was conducted in the context of a severe financial crisis. It highlights both the progress made since the 2003 FSAP and the remaining challenges to financial stability and development. The FSA is intended to be read alongside the Financial System Stability Assessment (FSSA) for a comprehensive understanding of the financial sector's condition and future directions.

Main Findings

• Financial System Resilience: The Romanian financial system entered the crisis well capitalized and with high liquidity buffers. The capital adequacy ratio (CAR) was 12.3% at the end of 2008, well above the EU minimum of 8%.
• Liquidity Management: High reserve requirements (18% on lei deposits, 40% on foreign currency deposits) provide a buffer against liquidity risk.
• Macroeconomic Deterioration: The financial crisis led to a significant worsening of the macroeconomic outlook, with a sharp decline in economic activity, credit to the private sector stagnating, and a large drop in equity values.
• Exchange Rate and Interest Rates: The leu depreciated by about 25% against the Euro by early 2009, and interest rates rose sharply due to inflation pressures and liquidity constraints.
• Stock Market Decline: The Bucharest Stock Exchange capitalization fell by nearly 80% from its 2008 peak.
• Systemic Risks: While the banking system is currently stable, stress tests indicate potential undercapitalization in the future. The pension sector is judged unsustainable, posing fiscal risks.

Key Recommendations

I. Crisis Management and Safety Net

• Enhance Bank Capital: Increase capital buffers and set medium-term targets for raising CARs.
• Improve Loan Portfolio Monitoring: Strengthen oversight of credit risk and problem loan workout procedures.
• Accelerate Crisis Planning: Implement simulation exercises and improve cross-border and cross-sectoral coordination.
• Strengthen Liquidity Support: Consider additional liquidity measures, especially under emergency lending arrangements (ELA).
• Review Bank Resolution Framework: Enable swift and effective actions for distressed institutions.
• Improve Deposit Insurance: Strengthen funding arrangements and speed up payout procedures.

II. Cross-Sectoral Issues

• Regulatory Independence and Autonomy: Ensure the political independence and financial autonomy of financial regulators, aligning them with the NBR.
• Enhance Information Exchange: Improve cooperation and information sharing among regulators and the Ministry of Finance (MEF).
• Strengthen FIU Resources: Expand the capacity of the Financial Intelligence Unit (ONPCSB) to effectively manage AML/CFT responsibilities.
• Promote Risk-Based Supervision: Continue the move toward risk-based supervision and improve communication with market participants.

III. Banking Sector

• Adopt IFRS: Fully implement International Financial Reporting Standards (IFRS) for banks.
• Strengthen Judicial and Accounting Standards: Improve standards for judicial, accounting, and auditing practices.
• Enhance Communication: Improve dialogue and consultation between the NBR and regulated entities.
• Implement Principles-Based Supervision: Continue efforts to adopt a principles-based approach to supervision.
• Supervise Credit Unions: Develop an effective regulatory framework for credit unions.
• Support Basel II Implementation: Expand staff resources to complete the implementation of Basel II.

IV. Securities Markets and Intermediaries

• Develop Capital Markets: Concentrate government bond issuance on one or two maturity points until market liquidity improves.
• Amend Capital Market Law: Remove restrictions on voting rights in regulated market operators.
• Improve Primary Dealer Contracts: Revise contracts to encourage market making and establish a PD rotation policy.
• Enhance Market Infrastructure: Encourage the Central Depository to establish a correspondent relationship with Euroclear and streamline OTC trading regulations.
• Improve Transparency: Establish a trade reporting system for government bonds and require OTC trades to be reported in real time.

V. Insurance Sector

• Review Obligatory House Insurance Law: Ensure the adequacy of premiums and reserves.
• Actuarial Review of Funds: Conduct actuarial reviews of guarantee and protection funds.
• Adjust MTPL and CASCO Premiums: Review and possibly adjust premiums and reserves for these insurance classes.
• Enhance CSA Capabilities: Continue training and improve risk analysis capabilities for the Insurance Supervisory Commission (CSA).
• Strengthen Cross-Border Coordination: Implement twinning programs with other EU insurance regulators.

VI. Pension Sector

• Clarify Guarantees: Clarify the Minimum Contribution Guarantee and Weighted-Average Return Guarantee.
• Revise Investment Fees: Adjust investment management fees and establish a unique valuation methodology.
• Review Corporate Governance: Strengthen governance structures for pension fund management companies (PFMCs).
• Ensure Minimum Capital: Require PFMCs to maintain minimum capital throughout operations.
• Harmonize Deferral Rules: Align deferral rules for marketing expenses with EU standards.
• Promote Annuities Products: Develop annuities to support retirement income.
• Consider Multi-Funds and Outsourcing: Explore the possibility of multi-funds and asset management outsourcing in the long term.
• Review Exit Mechanisms: Establish clear exit mechanisms for PFMCs.

VII. Access to Financial Services

• Implement ROSC Recommendations: Apply the recommendations of the Review of the Oversight of Securities and Capital Markets (ROSC) on accounting and auditing.
• Expand Trade Registry Coverage: Include smaller companies in the trade registry.
• Accelerate Real Estate Registry Reform: Improve the efficiency and transparency of the real estate registry.
• Interconnect Databases: Consider interconnecting various databases with debtor information to enhance credit assessment.

Key Information

• The 2003 FSAP found the Romanian banking system well capitalized but noted risks from rapid credit growth and the need for improved transparency and regulation.
• The 2008 FSAP Update was conducted under exceptional circumstances, emphasizing immediate financial stability measures over long-term development.
• The financial system is vulnerable to external shocks and liquidity constraints, necessitating a strong contingency framework.
• The pension sector remains a significant fiscal risk due to poor diversification and inadequate governance.
• The insurance sector requires further capacity building and regulatory adjustments, especially in light of Solvency II.
• The securities market is underdeveloped and needs infrastructure improvements and better transparency.
• Access to financial services remains limited, with only 27% of the population having a bank account and 35% a payment card.
• The AML/CFT framework is comprehensive, but enforcement and resource allocation need improvement.

Conclusion

The FSA highlights the need for continued reforms in Romania's financial sector, particularly in areas such as capital adequacy, liquidity management, regulatory coordination, and market development. Immediate actions are recommended to enhance financial stability, while medium-term strategies focus on strengthening supervision, improving transparency, and promoting sustainable development.