LAW on the Status of the National Bank of Romania

no. 101 of 1998

CHAPTER I
General provisions

ARTICLE 1
The legal status


            (1) The National Bank of Romania shall be the central bank of the Romanian State, provided with legal personality.
            (2) The National Bank of Romania's registered office shall be in Bucharest, and it shall be allowed to have branch offices and agencies in the capital town and other localities throughout the country.

 

ARTICLE 2
Basic objective


            (1) The basic objective of the National Bank of Romania shall be to ensure the stability of the national currency in order to contribute to the stability of prices.
            (2) For attaining its basic objective, the National Bank of Romania shall elaborate, apply, and be responsible for the monetary, foreign exchange, credit, and payments policy as well as for the authorization and prudential banking supervision within the framework of the State's general policy, following up the normal functioning of the banking system, and participating in the promotion of a financial system specific to the market economy.

 

ARTICLE S
Collaboration with the state authorities


            (1) The National Bank of Romania shall collaborate with the local and central public authorities for the achievement of its objectives.
            (2) With a view to the achievement of its basic objective, the National Bank of Romania shall be solicited to express its opinion on the statutory instruments of the public authorities directly related to the monetary policy, banking activity, foreign exchange rules and public debts.
            (3) In the elaboration of the draft budgets of the central public administration, the National Bank of Roniania shall be consulted with regard to the establishment of the public sector's loan conditions.
            (4) For its own requirements and those of the public authorities, the National Bank of Romania shall elaborate studies and analyses on currency, foreign exchange rules, credit, banking and payment system operations.

 

ARTICLE 4
International cooperation


            (1) By power of Parliament, the National Bank of Romania may participate in international organizations with a financial, banking, monetary, or payments character, and may become a member of these organizations.
            (2) The National Bank of Romania may participate in the name of the State in foreign talks and negotiations on financial, monetary, foreign exchange, credit, and payments problems as well as in the field of banking authorization and supervision.
            (3) The National Bank of Romania shall exercise rights and fulfil obligations devolving upon Romania in her capacity as member of the International Monetary Fund, the use of the facilities of this institution of medium and long term financing for the needs of the balance of payments and consolidation of the country's international reserves inclusive.
            (4) The National Bank of Romania may negotiate and conclude agreements, conventions, or other understandings with regard to short-term loans and other banking-andfinancial operations with international financial institutions, central banks, banking and non-banking companies, on condition of their reimbursement within a term of one year.
            (5) The National Bank of Romania may conclude in its own name or in the name of the State, by order and on the State's account, settlements and payments agreements or any other contracts to the same purpose with public or private institutions having their registered office abroad.

 

CHAPTER II
The monetary and foreign exchange policy

ARTICLE 5
The monetary policy

 

            Within the framework of the monetary policy which it promotes, the National Bank of Romania shall make use of proceedings and instruments specific to operations in the monetary market, crediting of the banks, and liquidity control by compulsory minimum reserves.

 

ARTICLE 6
Monetary market operations


            The National Bank of Romania may discount, acquire, take as security, or sell debts, bonds, or other securities on the State, banks or other juristic persons, and may attract deposits from banks, under terms it considers necessary in order to realize the objectives of the monetary policy.

 

ARTICLE 7
Crediting operations


            (1) The National Bank of Romania may grant credits on terms of reimbursement, guarantee and interest, to be established by its own regulations, in agreement with the provisions of the present law.
            (2) Crediting by the National Bank of Romania on overdraft shall be prohibited.

 

ARTICLE 8
Reserves requirements


            (1) The National Bank of Romania shall establish the regulations of the reserves requirements which the banks have to keep in accounts open with it.
            (2) For foreign deposits, the reserves requirements shall be constituted only in foreign currency.
            (3) On reserves requirements, the National Bank of Romania shall grant interest rates at least at the level of the average interest rate on deposits on current account practiced by the commercial banks.

 

ARTICLE 9
Foreign exchange policy


            (1) The National Bank of Romania shall elaborate and apply the policy with regard to the rate of exchange, establishing and following up the application of the foreign exchange rules in Romania's territory.
            (2) The National Bank of Romania shall be the State's agent with regard to the application of the legal regulations aiming at the foreign exchange control of juristic persons to whom it has granted authorization and from whom it is entitled to request and receive all information and any documents required for the fulfilment of the attributions devolving upon it, being empowered to take measures for enforcing the observance of its regulations.

 

ARTICLE 10
Establishment of foreign exchange rules


            In the management of the foreign exchange rules, the National Bank of Romania shall be responsible for:
            a) the issue of regulations with regard to operations with foreign assets and gold, with a view to the protection of the national currency;
            b) the elaboration of the balance of payments and of the country~ s international investitional rating;
            c) the establishment of the rates of exchange for its own operations in the foreign exchange market calculation, and publication of the average rates of exchange for the statistic record;
            d) the authorization and withdrawal of the authorization as well as supervision of juristic persons having obtained the authorization to carry out foreign exchange transactions;
            e) the establishment of ceilings and other limits for the holding of foreign assets and operations with gold and foreign assets for juristic and natural persons;
            f) the establishment of the ceiling and conditions of running into foreign debts of juristic and natural persons coming under the incidence of the foreign exchange rules;
            g) the custody and administration of the State's international reserves.

 

ARTICLE 11
Foreign exchange regulations


            The National Bank of Romania shall elaborate regulations with regard to the monitoring and control of foreign exchange transaction in Romania's territory, and shall issue authorizations for transfers abroad, transactions in foreign exchange markets, and other specific operations.

 

ARTICLE 12
Monitoring and reporting


            For monitoring foreign exchange transactions, the juristic persons authorized to carry on foreign exchange operations shall report to the National Bank of Romania on transactions effected, using documents whose form and contents shall be established by it.

 

CHAPTER III
The monetary issue

ARTICLE 13
The exclusive issue right


            The National Bank of Romania shall be the sole institution authorized to issue token money, in the form of banknotes and coins, as legal payment means in Romania 's territory.

 

ARTICLE 14
The monetary unit


            The national currency shall be the Leu, with its subdivision, the Ban.

 

ARTICLE 15
The token money


            (1) The National Bank of Romania shall be the sole one to have the right to establish the nominal value, dimensions, weight, design and other technical features of the banknotes and coins.
            (2) Banknotes shall bear the signature of the governor and of the chief cashier of the National Bank of Romania.
            (3) The forging or counterfeiting of banknotes and coins shall constitute an offence, and shall be punished according to the law.
            (4) The legal provisions with regard to lost or stolen bearer bonds shall not apply to banknotes and coins issued by the National Bank of Romania.
            (5) The graphical illustration of the banknotes and coins shall be protected by registering with the Romanian State Office for Inventions and Marks. Any partial or integral colour reproduction of these on a scale of one to one, for publicity, information or any other commercial purposes shall be permitted only with the preliminary written agreement of the National Bank of Romania.

 

ARTICLE 16
The monetary issue programme


            (1) The National Bank of Romania shall elaborate the issue programme of banknotes and coins so as to cover the need for cash in strict agreement with the requirements of the money circulation.
            (2) The total sum of the banknotes and coins in circulation, precluding the cash reserve, shall be recorded as liabilities in the bookkeeping of the National Bank of Romania.
            (3) The amount of cash in circulation, issued by the National Bank of Romania over and above the level of international reserves established and maintained according to the provisions under Article 31, shall be fully covered by the following assets:
            a) public securities held in the investment portfolio;
            b) assets resulted from credits granted to banks and other juristic persons, under the terms of the law;
            c) cheques, bills of exchange, and other credit bonds, discounted or held in portfolio.

 

ARTICLE 17
Legal means of payment


            Banknotes and coins issued and not withdrawn from circulation by the National Bank of Romania shall represent token money that have to be accepted at face value for the payment of all public and private obligations.

 

ARTICLE 18
Issue and putting into circulation of token money


            (1) The National Bank of Romania shall ensure the printing of banknots and minting of coins, and shall take measures for the safe keeping of those that are not put into circulation as well as for the custody and destruction, when this should be necessary, of dies, inks, and of banknotes and coins withdrawn from circulation.
            (2) The National Bank of Romania shall distribute the monetary issue achieved, and administer the cash reserve in form of banknotes and coins.
            (3) Worn out or inadequate banknotes and coins shall be withdrawn from circulation and destroyed by the National Bank of Romania, and replaced with new banknotes and/or coins.
            (4) The National Bank of Romania shall replace banknotes and coins issued and not withdrawn from circulation, tax-free and without commissions.
            (5) The National Bank of Romania may refuse the replacement of banknotes and coins presenting distorsions, are illegible, or if more than forty-per-cent of their area is missing. This token money shall be withdrawn from circulation and destroyed without granting of compensations to their holders, except special cases mentioned in the bank's own regulations.
            (6) The National Bank of Romania may not be compelled to grant compensations for banknotes or coins that were lost, stolen, destroyed, counterfeited or forged.

 

ARTICLE 19
Change of token money


            (1) The National Bank of Romania may decide to annul or withdraw from circulation of any banknotes or coins that were issued, and to replace them by putting into circulation other types of token money.
            (2) The period and modality of exchanging shall be published in the "Monitorul Oficial" (Official Gazette of Romania) and in at least two newspapers of national circulation.
            (3) At expiry of the exchanging period, the banknotes and coins withdrawn from circulation shall no longer be permitted to be used for the payment of public or private obligations, without entering into contradiction with the provisions under Article 17.
            (4) The sum total of the banknotes and coins withdrawn from circulation, but not exchanged within the established term, shall be subtracted from the total of the cash in circulation entered in the accounting records and shall be registered as income of the National Bank of Romania.

 

CHAPTER IV
Operations with banks

ARTICLE 20
Crediting of banks


            Within the framework of its monetary, foreign exchange, credit, and payments policy, the National Bank of Romania may grant credits to the banks on terms that may not exceed ninety days, guaranteed with:
            a) public securities resulting from public issues, falling due within not more than one year after the date when the guarantee was constituted by their delivery into the portfolio of the National Bank of Romania;
            b) bills of exchange and promissory notes drawn or subscribed by eligible juristic persons for the payment of commercial, industrial, or agricultural performances, according to the rules issued by the National Bank of Romania;
            c) deposit receipts or warrants issued with regard to fungible goods or other goods validly insured against loss, destruction, or deterioration risks;
            d) deposits constituted with the National Bank of Romania, or with other juristic persons agreed by the National Bank of Romania, consisting of any assets that it can sell, buy, or transact.

 

ARTICLE 21
Crediting costs and conditions


            (1) The National Bank of Romania shall establish and make publicly known the crediting conditions, the minimum level of the interest rate for credits granted to banks, and the criteria that have to be fulfilled by banks for being able to solicit credits on competitive bases.
            (2) The National Bank of Romania may establish crediting ceilings, levels of the interest rate, terms of reimbursement, and other conditions in which discretionary credits or credits on competitive bases may be granted.
            (3) For all operations carried out, the National Bank of Romania shall establish and collect interests, commissions, and other coverage forms of functioning costs and assumed risks, except operations carried out through the general running account of the State Treasury.

 

ARTICLE 22
Bank accounts


            (1) The National Bank of Romania shall open a running account for the State Treasury, for each bank, and for each branch of a bank which is a foreign juristic person, authorized to function in Romania.
            (2) The National Bank of Romania may open running settlement accounts and other accounts for resident interbanking compensation houses as well as for non-resident international institutions and central banks.
            (3) Through the running accounts there shall be carried out the final and irrevocable settlement of encashment and payment operations between accounts holders.

 

ARTICLE 23
Payment systems


            The National Bank of Romania shall issue general regulations with regard to payment instruments, shall coordinate and supervise the payment systems of national interest, and shall establish the necessary measures for the prevention and elimination of any situation that might put in danger the good functioning of the payment systems.

 

ARTICLE 24
Compensation, depositing, and payment services


            (1) The National Bank of Romania may provide compensation, depositing, and payment services through the agency of accounts opened in its records.
            (2) The National Bank of Romania may, on its own account or in the name and on the State's account, participate in compensation, depositing, and payment arrangements, or in other contracts with this purpose, concluded with central institutions or with specialist collective organizations, both public and private, having their registered office abroad.

 

ARTICLE 25
Risks prevention and limitation


            For the prevention and limitation of credit and payment risks, the National Bank of Romania shall, on request and against cost, provide collecting and distributing services, of data and information with regard to payment incidents and crediting risks in the banking system, under conditions of securing the secret of banking operations.

 

CHAPTER V
Banking supervision

ARTICLE 26
Banking authorization and prudential supervision


            (1) The National Bank of Romania shall have the exclusive competence to authorize the functioning of banks, and shall be responsible for the prudential supervision of the banks it has authorized to operate in Romania, in agreement with the provisions under the Banking Law.
            (2) In order to ensure the viability and functioning of the banking system, the National Bank of Romania shall be empowered to:
            a) issue regulations, take measures for imposing their observance, and apply the legal sanctions in cases of nonobservance;
            b) check and verify, on the basis of reports received and by inspections on the spot, the account books, accounts and any other documents of authorized banks considered to be necessary for the achievement of the bank's supervisions powers.

 

ARTICLE 27
Protection against the banking system risk


            For the purpose of limiting the payments and banking system risks, exceptionally and only from case to case, the National Bank of Romania may grant to the banks other credits, too, non-guaranteed or guaranteed with other assets than those provided under Article 20.

 

CHAPTER VI
Operations on the State's account

ARTICLE 28
Account of the State's Treasury


            (1) The National Bank of Romania shall hold in its records the general current account of the State's Treasury, opened on the name of the Ministry of Finance.
            (2) The functioning of the general current account of the State's Treasury and the recording of operations in this account shall be established by conventions concluded between the National Bank of Romania and the Ministry of Finance.

 

ARTICLE 29
Operations with the State's Treasury


            (1) The National Bank of Romania shall receive the receipts for the general current account of the State's Treasury, and carry out payments within the limit of available funds in this account.
            (2) The National Bank of Romania shall not take commissions at the settlement of operations through the general current account of the State's Treasury, opened in its records and shall pay interest on the funds available in this account.
            (3) In the course of the budgetary year, in order to cover the temporary discrepancy between receipts and payments in the general current account of the State's Treasury, the National Bank of Romania may grant loans with reimbursement terms of not more than one hundred and eighty days, and under terms of interest at market level, on the basis of agreements concluded with the Ministry of Finance.
            (4) The sum total of the loans granted may not exceed in any budgetary year the equivalent of seven-per-cent of the State budget's revenue achieved in the preceding year, and the permanent balance of the loans granted and not repaid shall not at any moment exceed the sun total resulted from the doubling of the National Bank of Romania' s capital and reserve fund.
            (5) The National Bank of Romania may act as the State's agent in the establishment of the banks eligible to receive deposits of the State's Treasury, under terms that shall be established together with the Ministry of Finance.

 

ARTICLE 30
Operations with public securities


            (1) In the case of agreements concluded beforehand with the Ministry of Finance, and conformably to the bank's own regulations, the National Bank of Romania may act as agent on the State's account, with regard to:
            a) the placement of issues of public securities and other negotiable securities by which the Romanian Government is running into debt;
            b) the exercise of the functions of recording, depositing, and transfer agent of public securities;
            c) the payment of the capital, interests, commissions, and of relating expenses;
            d) the executions of settlements in the general current account of the State's Treasury;
            e) other operations in accordance with the objectives and main responsibilities of the central bank;
            f) the carrying out of payments relating to the above through accounts opened in its records, of those relating to the issuers debt service and other dealing and operation costs inclusive.
            (2) Loans on the basis of public securities shall be carried out conformably to agreements concluded between the National Bank of Romania and the Ministry of Finance, by which at least the following elements shall be established: the value of the loan, the falling due term, the rate of interest, and mode of calculation of the interest over the whole duration of the credit, the cost of the debt service as well as data with regard to negotiable public securities issued for each loan.

 

CHAPTER VII
Operations with gold and foreign assets

ARTICLE 31
International reserves


            (1) While observing the general rules with regard to liquidity and the specific risk of foreign assets, the National Bank of Romania shall establish and maintain international reserves under such conditions that it may periodically determine their exact size, reserves formed cumulatively or selectively from the following elements:
            a) gold held in the treasury within the country or deposited abroad;
            b) foreign assets in form of banknotes and coins, or available funds in bank accounts or at other financial institutions abroad, expressed in those currencies and held in those countries established by the National Bank of Romania;
            c) any other reserve assets recognized at international level, the right to effect purchases from the International Monetary Fund within the framework of the reserve instalment inclusive, as well as the holding of special drawing rights;
            d) bills of exchange, cheques, bills payable to order as well as bonds and other securities, whether negotiable or not, issued or guaranteed by non-resident juristic persons, classified in the first classes by risk appreciation agencies, recognized at international level, expressed and payable in foreign exchange in acceptable places for the National Bank of Romania;
            e) treasury bills, debentures and other public securities, issued or guaranteed by foreign governments or by intergovernmental financial institutions, whether negotiable or not, expressed and payable in foreign currency in places acceptable for the National Bank of Romania.
            (2) The National Bank of Romania shall, together with the Ministry of Finance, follow up the maintenance of the international reserves at a level that it appreciates as adequate for the State's foreign transactions;
            3) If there should be a danger of the decrease of the international reserves to a level that might put in peril the State's international transactions, as well as in the case in which the decrease should have taken place, the National Bank of Romania shall present to the Government and Parliament a report on the position of the international reserves and the causes that have led or might lead to such a reduction. The report shall contain recommendations and proposals of measures of the National Bank of Romania required for the prevention or remediation of the situation.

 

ARTICLE 32
Management of international reserves


            The National Bank of Romania shall be authorized, under the terms established by itself and which it can periodically modify, to carry out the following operations:
            a) to buy, sell, and make other transactions with gold bullions and coins, and with other precious metals;
            b) to buy, sell, and make other transactions with foreign exchange;
            c) to buy, sell and make other transactions with treasury bills, debentures, and other bonds issued or guaranteed by foreign governments or intergovernmental financial organizations;
            d) to buy, sell, and make other transactions with transferable securities issued or guaranteed by central banks, international financial institutions, banking and non-banking companies;
            e) to open and maintain accounts at central banks and monetary authorities, banking companies, and international financial institutions;
            f) to open and maintain accounts and carry out correspondent operations for international financial institutions, central banks and monetary authorities, financial an banking companies, intergovernmental financial organizations from abroad, as well as for foreign governments and their agencies.

 

CHAPTER VIII
Leadership and management

ARTICLE 33
Leadership of the National Bank of Romania


            (1) The National Bank of Romania shall be led by a managing board.
            (2) The executive leadership of the National Bank of Romania shall be exercised by the governor, prime-vice-governor, and two vice-governors, under the terms established by the standing orders approved by the managing board.
            (3) The activity of the managing board shall be regulated by the provisions under the present law and by the regulations of the National Bank of Romania.

 

ARTICLE 34
The Managing board


            (1) The Managing board of the National Bank of Romania shall decide, under the terms of the law, on:
            a) the policies in the monetary, foreign exchange, credit, and payments fields, prosecuting their carrying out;
            b) measures in the field of the authorization and prudential supervision of the banks it has authorized;
            c) the main directions in the management of operations, and responsibilities devolving upon the staff of the National Bank of Romania;
            d) the internal organization, indemnities, salaries, and other money dues of the staff;
            e) the temporary delegation of its competencies to the executive management, when special situation might impose this solution.
            (2) The Managing board of the National Bank of Romania shall be composed of nine members, as follows:
            a) a chairman, who shall also be governor of the National Bank of Romania;
            b) a vice-chairman, who shall also be prime-vice-governor;
            c) seven members, two of which shall also be vice-governors while the other five members shall not be employees of the National Bank of Romania.
            (3) Members of the Managing board of the National Bank of Romania, with nomination of the executive leadership, shall be appointed by Parliament at the proposal of the specialist standing committees of the two Chambers of Parliament.
            (4) Appointments shall be made over a period of six years, with possibility of renewal of the mandate.
            (5) In case of vacancies on the Managing board, the vacant seats shall be completed on the respective function and only for the period remaining until the expiry of the mandate of the replaced people, with observance of the provisions under para. (3).
            (6) Dismissal from office of any member of the Managing board shall be made by Parliament, at the proposal of the specialist standing committees of the two Chambers of Parliament, for each case in part, if:
            a) the respective member is no longer eligible in conformity with the provisions under Art. 35;
            b) against the respective member was passed a criminal sentence with imprisonment, and the sentence is final;
            c) during the mandate, the respective member has undertaken visibly inadequate actions substantially detrimental to the interests of the National Bank of Romania.
            (7) No member of the Managing board of the National Bank of Romania shall be changed from office for other reasons and by another proceedings than that provided under para. (6).
            (8) Appointments, withdrawals, and dismissals from office of members of the Managing board of the National Bank of Romania shall be published in the "Monitorul Oficial" (Official Gazette of Romania).
            (9) In the sittings of the Managing board of the National Bank of Romania may participate the minister of finance and the director of the State Treasury, without voting right.

 

ARTICLE 35
Incompatibilities and interest conflicts


            (1) Members of the Managing board of the National Bank of Romania may not be members of Parliament or members of a political party, and may not belong to the judicial authority or the public administration.
            (2) Members of the Managing board of the National Bank of Romania and employees with management functions of the National Bank of Romania shall be prohibited, directly or indirectly, to represent some interest of financial, commercial or any other kind that might put them in a position in which their personal interest would enter into conflict with their obligations and duties towards the National Bank of Romania.
            (3) Without express approval of the Managing board of the National Bank of Romania:
            a) for the duration of their mandate, the governor, prime-vice-governor, and vice-governors shall not devote their professional capacity to other interests than those of the National Bank of Romania, and they shall not hold any other office, remunerated or honorary, in trading, financial, banking or non-banking companies, except didactic activities;
            b) over the duration of their employment with individual labour contract at the National Bank of Romania, noemployee of the bank may concomitantly hold another office, remunerated or honorary, in a trading company or at another business organization which, by its statutory activity, aims at obtaining profit.

 

ARTICLE 36
Attributions of the governor of the National Bank of Romania


            (1) The governor of the National Bank of Romania shall dispose measures for the execution of the legal provisions, of the decisions of the Managing board as well as of other regulations with regard to the National Bank of Romania. The governor may delegate some of his powers to the prime-vice-governor and vice-governors, under the terms established by the Managing board.
            (2) The governor shall appoint in office the staff from the central machinery of the National Bank of Romania, and the directors of the branch banks and agencies.
            (3) The governor shall represent the National Bank of Romania in relations with third parties, signing all treaties and agreements concluded, directly or through persons empowered by him.
            (4) In the name of the Managing board, the governor shall present to Parliament before the 30th of June of the following year, the annual report of the National Bank of Romania, which shall include:
            a) the main economic, financial, monetary, and foreign exchange evolutions;
            b) the monetary policy in the preceding year and orientations for the following year;
            c) banking prudential supervision and regulation;
            d) activities of the National Bank of Romania, annual report, and profit and loss account.
            (5) In case of absence or impossibility to act, the governor shall be replaced by the prime-vice-governor.

 

ARTICLE 37
The auditing commission


            (1) The auditing commission, consisting of five members, one of whom is chairman, shall be appointed under the terms of Article 34 paragraphs (3) and (4).
            (2) The auditing commission shall check the observance of the legal rules with regard to the estimation of the National Bank of Romania '5 assets, drawing up of the balance sheet and of the profit and loss account in agreement with the records, the existence of the values in the safe as well as of the bonds in property or received as security, guarantee or in custody, as well as the execution of the revenue and expenses budget.
            (3) The auditing commission shall annually draw up a report on the balance sheet and the profit and loss account, as well as on the execution of the revenue and expenses budget.

 

ARTICLE 38
External survey


            The accounts and records of the National Bank of Romania may be subject to the examination of firms of financial audit selected by the Managing board on an auction basis.

 

CHAPTER IX
Financial returns

ARTICLE 39
Capital of the National Bank of Romania


            (1) The capital of the National Bank of Romania shall be of Lei one hundred billion, and shall belong entirely to the State. The increase of the capital shall be effected by the partial utilization of the net annual profit up to a level equivalent with five-per-cent of the aggregate monetary liabilities from the balance at the end of each financial year.
            (2) The capital of Lei one hundred billion shall be constituted by taking over the capital of Lei five billion, registered on December 31, 1997, and by appropriating the sum of Lei ninety-five billion from the reserve fund of the National Bank of Romania.
            (3) The aggregate monetary liabilities of the National Bank of Romania shall be established as sum total of the banknotes and coins in circulation and transferable securities issued, as well as of the credit balances of all open accounts, by holders, in its records.

 

ARTICLE 40
The reserve fund


            The reserve fund of the National Bank of Romania shall be constituted within the limit of a quota of twenty-percent of the gross profit until this should get equal to the bank's own capital, after which the respective quota shall be reduced to ten-per-cent until the reserve fund should get equal to double the bank's own capital, and subsequently the quota shall be established at five-per-cent.

 

ARTICLE 41
Scheme of accounts


            (1) The National Bank of Romania's operations shall be recorded in keeping with the bank's own scheme of accounts advised by the Ministry of Finance, on financial years basis, beginning on January 1, and ending on December 31.
            (2) The National Bank of Romania shall maintain accounts and records, and set up yearly reports reflecting the financial operations and results, commissions constituted for non-performant credits inclusive, in accordance with the legislation in the field and the accounting principles accepted at international level for central banks.

 

ARTICLE 42
The revenue and expenses budget


            The annual revenue and expenses budget shall be approved by the Managing board of the National Bank of Romania, and shall be verified in execution by the auditing commission.

 

ARTICLE 45
The profit and loss account


            (1) For each financial year, the National Bank of Romania' s profit or loss shall be calculated in accordance with international accounting standards, as difference between revenue and expenses from operational activities.
            (2) In case the value of assets in the balance sheet of the National Bank of Romania should decrease below the sum total of engagements, reserve fund, and the bank's own capital, the Ministry of Finance shall transfer to the National Bank of Romania, at its request, negotiable public securities at market price in the necessary sum to cover this deficit. These public securities shall be redeemed within five years from the net profits realized by the National Bank of Romania, or they shall be renegotiated.

 

ARTICLE 44
Revaluation of assets and liabilities


            The National Bank of Romania shall annually carry out the revaluation of assets and liabilities expressed in gold, silver, other precious metalls and stones, special drawing rights and foreign currency, as a result of the modification of their value or rate of exchange in Lei, and the differences resulted shall be recorded in a special revaluations account.

 

ARTICLE 45
Determination and utilization of the net profit


            (1) The gross profit of the National Bank of Romania shall be constituted only from the net revenue from the operational activity.
            (2) The net favourable differences from revaluations, after deduction of net losses from operations shall be appropriated to the special revaluations account.
            (3) The net profit of the National Bank of Romania shall be appropriated and used in the following order of priorities:
            a) for increasing the bank's own capital up to a level equivalent to five-per-cent of the aggregate monetary liabilities recorded in the balance sheet at the end of each financial year;
            b) for redeeming public securities transferred to the National Bank of Romania by the Ministry of Finance, under the terms provided by Art. 43 para. (2);
            c) for constituting a development fund;
            d) for the participation in the profit fund of employees, within the limit of ten-per-cent;
            e) for other destinations to be established by the Managing board of the National Bank of Romania;
            f) the remaining profit shall be totally transferred to the state budget not later than June 1 of the following finnancial year.

 

ARTICLE 46
Distribution of net losses


            If, during a financial year, the National Bank of Romania should record a net loss, this shall be distributed as follows:
            a) if the net loss is composed of net losses from net unfavourable differences and operations from revaluations, the sum total of net losses from operations shall be borne, in order, from the reserve fund, and from the bank's own capital, and the sum total of unfavourable differences from revaluations shall be allocated to the special revaluations account;
            b) if the net loss is composed of net income from operations and net unfavourable differences from revaluations, the net income from operations shall be constituted as gross profit, and the net unfavourable differences from revaluations shall be allocated to the special revaluations account;
            c) if the net loss is composed of net losses from operations and net favourable differences from revaluations, the net loss shall be covered, in order, from the reserve fund, and from the bank's own capital;
            d) if the net loss shall not be covered from the reserve fund, the bank's own capital, and the available funds from the special revaluations account, for the remaining sum the Ministry of Finance shall transfer to the National Bank of Romania public securities, under the terms provided under Art. 43 para. (2).

 

ARTICLE 47
Registration responsibility


            For possible payment or registration errors in the holders' accounts, the National Bank of Romania shall be responsible only up to the limit of the sum of money erroneously paid or entered in the account, corresponding penalties included, which shall be transferred to the state budget, borne by the holders of account in the cases provided by law, if the bank is informed by a written complaint before expiry of the term established and communicated to the holders of account.

 

ARTICLE 48
Publication of the balance sheet


            The annual balance sheet and the profit and loss account of the National Bank of Romania, certified by the auditing commission, after their adoption by the Managing board, shall be published in the "Monitorul Oficial" (Official Gazzette of Romania).

 

CHAPTER X
Final provisions

ARTICLE 49
Applicable legislation


            (1) The operations of the National Bank of Romania shall be subject to the general legislation, to the extent to which the Banking Law and the present law shall not otherwise dispose.
            (2) The commercial operations carried out by the National Bank of Romania, which are reflected in the revenue and expenses budget, in the annual balance sheet, and in the profit and loss account shall be subject to the subsequent control of the State Audit Office.

 

ARTICLE 50
Regulations of the National Bank of Roman
ia


            (1) The National Bank of Romania shall be empowered to issue the necessary regulations for putting into practice and imposing the observance of the legal provisions.
            (2) The regulations of the National Bank of Romania may be in form of rules, orders, norms, and circular letters, having a mandatory character for public and private juristic persons as well as for natural persons.

 

ARTICLE 51
Statistical information


            (1) The National Bank of Romania shall contribute to the bringing into line of the rules and practices with regard to the collecting, processing, and distribution of statistical information in its fields of competence.
            (2) The National Bank of Romania shall collect primary statistical information that is necessary for the fulfilment of its legal attributions, from public authorities, banks, financial institutions, and other natural and juristic persons.
            (3) The banks and other private or public juristic persons, authorized by or having accounts with the National Bank of Romania shall be under an obligation to supply it with any data or information requested for implementing the attributions established by law.
            (4) The National Bank of Romania may publish such data and information, fully or in part, but only in aggregated form.

 

ARTICLE 52
Special guarantees


            (1) Agreements, contracts, or any other crediting arrangements concluded by the National Bank of Romania shall constitute writs of execution, in case of non-payment, for the whole balance of the payable claim, corresponding interest or other costs inclusive.
            (2) The financial or judicial state bodies shall execute the National Bank of Romania' s claim on the basis of a simple notification on its part.
            (3) In case the debtor should fail to fulfil his assumed commitments, the National Bank of Romania shall have the right to institute proceedings for the recovery of the debt by execution of the guarantees, thus:
            a) total or partial sale, on the debtor's account, of bonds and deeds given as guarantee, within not more than three days, by a simple summons by an extrajudicial act;
            b) out of the income resulted from the sale shall be recovered the claims, advances, interests, and any other expenses incurred by the National Bank of Romania, and the possible surplus shall be remitted to the debtor.

 

ARTICLE 53
Operations in favour of third parties


            (1) The National Bank of Romania may carry out some operations in favour of third parties only on condition of tendering the documents it considers necessary. Whenever it considers necessary, the National Bank of Romania may request the constitution of real or personal guarantees.
            (2) Except cases in which the present law authorizes it expressly, the National Bank of Romania shall not grant financial aid in form of credits, commitment of resources, integral or partial taking over of obligations corresponding to a loan or other debts contracting instruments, assumption of a debt, or of adjoining liabilities, or in any other form.
            (3) By observance of the provisions under para. (2), the National Bank of Romania may:
            a) invest its financial resources in transferable securities with a high degree of liquidity, issued by financially reliable debtors;
            b) acquire rights of any kind that can be turned to good account in the course of the execution of its claims;
            c) grant credits for each of its employees for dwellings, and consumer durable goods, with interest at the level of the average monthly interest at commercial banks.

 

ARTICLE 54
Fiscal facilities

           
            The National Bank of Romania '5 capital, reserve fund and risk commissions, ingots, coins, and other objects of gold, silver, and other precious stones and metals shall be exempt from rates and taxes.

 

ARTICLE 55
The professional banking secret


            (1) Members of the Managing board and employees of the National Bank of Romania shall be under an obligation to keep the secret on any information not destined for publication, of which they should have been apprised in the course of the exercise of their office, and they shall not use this information for obtaining personal advantages, any infraction to this rule being punished according to the law.
            (2) The disclosure of the professional banking secret may be done within the framework of a judicial procedure, only in the conditions approved by the Managing board of the National Bank of Romania.

 

ARTICLE 56
Indemnities


            Members of the Managing board ot the National Bank of Romania and auditors shall receive indemnities.

 

ARTICLE 57
Participation with capital


            The National Bank of Romania may not directly or indirectly participate with capital in any trading company or self-managed public company, except in its own banknote printing and coin minting enterprises and other companies that might contribute to the achievement of its attributions.

 

ARTICLE 58
Real estate


            The National Bank of Romania may invest in real estate only for its own functioning requirements and for the collective needs of the staff established by its Managing board.

 

ARTICLE 59
Public relations


            (1) All regulations issued by the National Bank of Romania shall be published in the "Monitorul Oficial" (Official Gazette of Romania).
            (2) The National Bank of Romania shall open and maintain a public register of its regulations published in the "Monitorul Oficial" (Official Gazette of Romania).
            (3) The National Bank of Romania shall periodically publish an annual statement, reports on the payments balance, and the Country's international investitional rating, bulletins with regard to the evolution of the currency and of credit, studies and other materials including information destined for publicity.

 

ARTICLE 60
Sanctions

 

            (1) For non-observance of the regulations issued by the National Bank of Romania, in casses not falling under the incidence of the Banking law, the executive management of the National Bank of Romania may apply the following sanctions:
            a) written warning;
            b) a fine from Lei one million to ten million; fines collected shall be made revenue to the state budget;
            c) partial or total suspension of the authorization granted by the National Bank of Romania, over a period of up to ninety days;
            d) withdrawal of the authorization granted by the National Bank of Rpmania.
            (2) Contestations shall be formulated within fifteen days after communication of the sanction and shall be solved by the Managing board of the National Bank of Romania within not more than thirty days after their reception.
            (3) The decisions of the Managing board of the National Bank of Romania may be contested at the Supreme Court of Justice within fifteen days after their communication.

 

ARTICLE 61
Coming into force


            The present law shall come into force within thirty days after its publication in the "Monitorul Oficial" (Official Gazette of Romania).

 

ARTICLE 62
Abrogations

 

            The Law No. 34/1991 on the Status of the National Bank of Romania, published in the "Monitorul Oficial" (Official Gazette of Romania), Part I, No. 70 of April 3, 1991 as well as any provisions to the contrary shall be abrogated after the date of coming into force of the present law.

 

Published in the "Monitorul Oficial" (Official Gazette of Romania), Part I, No. 203 of June 1, 1998

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