Regulation no. 9/2020 issued by the National Bank of Romania (NBR)

18/09/2020 

NBR published a regulation on the management of settlement risk and the granting by the NBR of credit facilities in the ReGIS system (i.e. the national real-time gross settlement system of payments in domestic currency provided by the NBR).

The Regulation sets out:

A) Rules for managing settlement risk

A credit institution participating in the ReGIS system, whose net position, following a net basis settlement, is cleared in the account opened with ReGIS and which does not have its own rules for managing the clearing risk in ReGIS, must put in place financial guarantees in RON for the benefit of the NBR. 

The financial guarantees can be cash collateral or certain eligible assets blocked in SaFIR (the financial instruments depository and settlement system, acting as Central Securities Depository for the government securities issued on the interbank market, the certificates of deposit issued by the NBR and other fixed- income financial instruments set by NBR’s board).

B) Rules on the granting by the NBR of credit facilities for the streamlining of settlement in the ReGIS system

Intraday credit

• Offered on an interest-free basis to eligible participants via repo transactions with settlement on the same day.
• Eligible participants are credit institutions that:
  • Are participants in the ReGIS and SaFIR systems
  • Comply with the criteria for operations undertaken by NBR on the currency market and for monetary facilities offered by NBR and abide by the same risk management rules.
• If the assets from the repo transactions are not recovered, the participant can request the NBR to transform the intraday credit into a credit facility.

Credit facilities for card payment systems - with an interest rate equal to the interest rate of the Lombard credit established by the NBR, plus 3%.