Romania: Financial Sector Assessment Program-Technical Note-Macroprudential Policy Framework and Tools

IMF Staff Country Reports, June 8, 2018

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Canonical URL: Romania: Financial Sector Assessment Program-Technical Note-Macroprudential Policy Framework and Tools

This Technical Note analyzes the implementation of macroprudential policy framework and tools in Romania.
Publication date: June 8, 2018.
The National Bank of Romania (NBR) has a long experience in implementing macroprudential policy measures.
The NBR monitors several indicators to assess the build-up of systemic risk, many of which are derived from the nation-wide credit register and related data sources.

The institutional framework for macroprudential policymaking has recently been revised and contains a clear mandate and well-defined objectives.
NBR’s role seems constrained despite the revised framework.
The macroprudential policy toolkit should be strengthened further to address risks identified in the Financial Sector Assessment Program’s risk analysis.
The systemic risk buffer should be calibrated carefully to address risks stemming from the strong sovereign-bank nexus.

NBR monitors several indicators to assess the build-up of systemic risk.
Many indicators are derived from the nation-wide credit register and related data sources.

Strengthen the macroprudential policy toolkit to address identified risks.
Carefully calibrate the systemic risk buffer to address risks stemming from the strong sovereign-bank nexus.

Subject: Banking, Credit, Financial institutions, Financial sector policy and analysis, Macroprudential policy, Money, Mortgages, Systemic risk, Systemic risk assessment
Keywords: banks' balance sheets, CR, Credit, equity holding, funding pattern, FX bank lending, FX liquidity risk, FX loan, Global, ISCR, Macroprudential policy, Mortgages, parent bank, sovereign-bank nexus, Systemic risk, Systemic risk assessment