Romania could become member of the European Single Supervisory Mechanism next year, according to Bogdan Olteanu, deputy governor of Romania’s National Bank (BNR). The mechanism, which is part of the European Banking Union, will start functioning in November 2014.

Under this new system, the European Central Bank will directly supervise the largest banks in the euro zone but also in other member states which may decide to join the Mechanism, while the national supervisors will continue to monitor the remaining banks. The main task of the ECB and the national supervisors, working closely together within an integrated system, will be to check that banks comply with the EU banking rules and to tackle problems early on.

“The steps we need to take are not simple, on one hand we must perform an evaluation of local banks’ assets, which is ongoing, on the other hand an extremely complex institutional legislative reform is needed to transfer part of Romania’s sovereignty to that part of the European Union which decides to be part of the Banking Union, a new euro zone plus, if you want,” Olteanu explained.

He added: “It is an honor for Romania that probably, in the beginning, the euro zone plus will be made of the euro zone and Romania. We are the first ones and still the only ones who affirmed this intention to enter the Banking Union as quickly as possible.”

editor@romania-insider.com