Romania

This Technical Note analyzes the implementation of the macroprudential policy framework and tools in Romania. The National Bank of Romania (NBR) has long experience in implementing macroprudential policy measures. The NBR monitors several indicators to assess the buildup of systemic risk, many of which are derived from the nationwide 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, but the NBR’s role seems constrained. It is recommended that the macroprudential policy toolkit 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.