The changes in the banking system according to Government Emergency Ordinance no. 98/2006 are effective and applicable to the banking system as of January 1st, 2007, except for certain provisions related to financial investment services companies whose application by the Romanian National Securities Commission has been postponed until January 1st, 2008. The Government Emergency Ordinance no. 98/2006 provides additional supervision of the credit institutions, insurance and/or reinsurance companies, financial investment services companies and investment management companies belonging to financial conglomerates (the “GEO 98/2006″), the Government Emergency Ordinance no. 99/2006 regarding credit institutions and capital adequacy (the “GEO 99/2006″), and a significant number of application norms issued by the National Bank of Romania and the Romanian National Securities Commission.
Tthe field of application of the GEO 99/2006 includes the conditions of access to the banking activity and of carrying it out in Romania by credit institutions, the prudential supervision of the credit institutions, financial investment services companies and payment and settlement systems for financial markets. The GEO 99/2006 applies to credit institutions, Romanian legal entities, including the branches abroad thereof, and for the credit institutions in other member states, third party states respectively, in what concerns their activity carried out in Romania. As a novelty, we note the application of the GEO 99/2006 to holding-like financial companies, which, together with the GEO 98/2006 sets the premises for a uniform and coherent supervision of financial groups (holdings or financial conglomerates) either at the level of Romania or for the whole activity in the member states of the European Union.
