NBR opens up the banking sector to any EU player

As of January 1 2007, any commercial or mortgage credit bank, any leasing or consumer finance company registered in an EU member state and authorised by the central bank in the country of residence, can open branches in Romania or provide services directly, without going through the lengthy process of becoming authorised by the NBR (the National Romanian Bank). These institutions are not required to come up with starting capital, and the operations that the institutions would conduct in Romania fall under the supervision of the central bank, which monitors the parent bank, in collaboration with the NBR. These provisions are part of the draft to modify the banking law, called “Law on credit institutions and on capital adjustment,” which was adopted by the NBR in its final form and which is to be pushed forward by the Ministry of Finance so as to be enacted in Parliament by the end of the year, in line with commitments made to the EU. Local banks are already starting to feel the pressure of competition from European banks which do not even have a Romanian branch, but which come with unbeatable offers to grant funding for projects, especially for municipalities, but also for certain big companies.