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Law No. 33 Of 29 March 1991 Concerning Banking Activity

Original Language Title:  LEGE nr. 33 din 29 martie 1991 privind activitatea bancară

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LEGE No. 33 of 29 March 1991 on banking
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR NO. 70 of April 3, 1991



The Romanian Parliament adopts this law + Chapter 1 General provisions + Article 1 Banking activity in Romania is carried out through the National Bank of Romania and through banking companies established, based on Law no. 31/1990 31/1990, as companies. + Article 2 The National Bank of Romania is the central bank of the Romanian state, having legal personality. It is the single issue body of the state and establishes regulations in the fields of: monetary, credit, currency and payments. The National Bank of Romania refinances banking companies and provides liquidity to the banking system. The National Bank of Romania ensures the supervision of all banking companies. At the same time, the National Bank of Romania will promote, regulate and supervise banking intermediation activities The tasks of the National Bank of Romania are provided in the statute of organization and functioning approved by law + Article 3 Banking companies are legal entities whose main object of activity is the attraction of funds from legal and natural persons, in the form of non-negotiable deposits or instruments, payable on sight or term, as well as granting of credits. + Article 4 The organizational structure, management and administration of banking companies are established by their own statutes. The banking company is engaged only by the signatures of at least two leaders having the functions established by their own statutes. + Section I Banking companies, Romanian legal entities + Article 5 Banking companies, Romanian legal entities, are constituted in compliance with the provisions of Law no. 31/1990 31/1990 on companies; they cannot be constituted in the form of limited liability companies. Banking companies can be constituted and operated only on the basis of authorization issued by the National Bank of Romania. + Article 6 The documentation to be submitted for the request of the authorization and the conditions under which it may be granted will be established by norms of the National Bank of Romania The National Bank of Romania will establish rules on the minimum volume of social capital and the minimum share of varsamint at the time of subscription, which cannot be less than 50%, as well as the subscription period. + Article 7 The conditions under which the authorization can be withdrawn, both in cases when the withdrawal is imposed by law, and when it is required by the respective banking company, shall be established by norms of the National Bank of Romania. All the permits issued and those in force will be highlighted by the National Bank of Romania in a register, which will be permanently accessible to the public. + Article 8 The subscribed share capital must be fully paid up within two years from the date of establishment of the banking company. The subscribed share capital must be shed in monetary form. + Article 9 After legal formation, the banking company will have to clearly identify itself, in all its official acts, by a minimum of data: full name and social firm, subscribed share capital, address of the main office, number and date registration in the commercial register. + Article 10 In the case of merger, dissolution, liquidation or bankruptcy of banking companies, the provisions of Law no. 31/1990 on companies, as well as special norms and express opinions of the National Bank of Romania, taking into account the specific nature of banking operations. + Article 11 The merger of two or more banking companies shall be decided by each banking company as per its own status. In advance of the start of its activity, the banking company resulting from the merger is obliged to obtain the authorization of the National Bank of Romania. + Article 12 Banking companies are prohibited from entering into contracts or deals, adopting practices of any kind that would secure them dominant positions in the money, financial or currency market or engage in operations to obtain disloyal advantages. for them or for third parties. The National Bank of Romania has the right to bring legal action whenever it finds the violation of the provisions of this article. + Section II The regime of branches and branches in Romania of banks, foreign legal entities + Article 13 The establishment, operation and liquidation of subsidiaries in Romania of banking companies, foreign legal entities, shall be carried out according to Law no. 31/1990 on companies, after the recognition of these banking companies as foreign legal entities, under the conditions established by the Romanian law. The opening in Romania of branches of some foreign legal entities takes place in accordance with the provisions of the legislation on the functioning in Romania of the representatives of foreign companies and organizations. + Article 14 The exercise of the banking profession and the bank operations of the subsidiaries and branches provided in art. 13 of the present law are subject to the authorization of the National Bank of Romania, in accordance with its policy towards the activity of foreign banks in Romania. + Chapter 2 Banking activity + Article 15 In their activity, banking companies will submit to the regulations issued by the National Bank of Romania for the application of monetary, credit, foreign exchange, payment, bank prudence and supervision of banking companies. + Article 16 All banking companies are obliged to open current accounts with the National Bank of Romania and maintain mandatory minimum reserves according to the regulations given by it. + Article 17 Banking companies can open at the National Bank of Romania and other accounts, under the conditions established by it. + Article 18 Banking companies can carry out deposit operations in sight and term, in the account, with cash and with securities consisting in attracting money resources from legal and natural persons, in order to preserve and capitalize on them. Deposits may be a bearer of interest. + Article 19 Short term credit is understood any kind of loan operation of money for a duration not exceeding 12 months. Loans whose repayment duration is between one year and five years are medium-term loans, and those that exceed the duration of five years are long-term loans. When granting loans, banking companies will aim for applicants to submit credibility for their repayment at maturity. To this end, they can ask applicants to guarantee the loan with movable and immovable property. + Article 20 After the approval of a credit, the banking companies may not cancel or reduce its amount except in justified cases, determined by the provision of unreal data by the debtor, and only after the expiry of a period of notice of at least 5 days, which will be communicated in writing to the debtor. Banking companies may immediately discontinue, without notice, the use by the debtor of an approved credit, if the debtor has violated the terms of the credit agreement or if the economic and financial situation of it no longer ensure reimbursement conditions. + Article 21 All credit and guarantee operations of the banking companies will have to be recorded in contractual documents showing clearly all the terms and conditions of these transactions. The copies of these documents will have to be kept by the banking companies and made available to the authorized personnel of the National Bank of Romania, at its request. + Article 22 Banking companies can buy, sell, keep in custody and manage monetary assets, execute transfers, clearing operations and other transfer operations, on their own or on behalf of third parties. + Article 23 Banking companies may receive securities in the pledge or in storage. Such securities may not be pledged by the receiving banking company and shall not exercise the right to vote for those securities. + Article 24 Banking companies may perform, according to the law and within the limits of the authorization granted and the means available to them, operations and related activities as: foreign exchange operations; operations with precious metals, with objects made of them and with other values with a high degree of liquidity; placement, subscription, management, preservation and trade in securities; banking consulting; guarantees; trustees, as well as other legal activities that may be assumed on its own account or on behalf of clients. + Article 25 The banking company cannot conduct the following operations: a) engaging in transactions with movable and immovable property. It is exempted transactions with buildings necessary to carry out the activity of the banking company and for the use of employees, as well as transactions with movable and immovable property b) the purchase of their own shares or their pledge to the bank's debts. The redemption of own shares in order to reduce the share capital, which will be subject to prior authorization from the National Bank of Romania, shall be exempted; c) granting loans to customers, conditional on the sale or purchase of shares of the bank; d) the receipt of deposits, securities or other values, when the banking company is in a state of cessation of payments; e) hiring in warehouse operations, if most deposits come from bank employees. The operations of investment funds and other financial operations based on the principle of mutuality shall be exempted. + Article 26 Operations and prohibited activities, other than those mentioned in art, may be specified by operating permits. 25 of the present law. + Article 27 Banking companies will allocate 20% of the annual gross profit for the constitution of reserves, until the fund thus constituted equals the capital, then a maximum of 10% until the moment when the fund reached twice the capital. After reaching this level, the allocation of amounts for the reserve fund will be made from the net profit, based on the decision of the boards of the banking companies. Banking companies may constitute risk funds to cover possible loans that can no longer be recovered, both from gross profits up to 0.5% of the total loans granted, as well as from net ones, as well as other funds. + Chapter 3 Regulation and supervision of banking + Article 28 The participation of a banking company in a firm or an enterprise whose object of activity is not related to banking activity may not exceed 20% of the capital of the respective firm or enterprise. + Article 29 Loans granted by a bank to a single debtor cannot exceed, cumulatively, 20% of the capital and reserves of that banking company. Any person or group of natural or legal persons who are economically related to each other shall be considered a single debtor. Loans granted to debtors in special relations with the banking company or its staff, including family, will be allowed only under the conditions of the regulations issued by the National Bank of Romania. + Article 30 Banking companies are obliged to communicate to the National Bank of Romania loans granted to their clients, which exceed the minimum amount for reporting established by the National Bank of Romania. + Article 31 Banking companies are obliged to submit monthly to the National Bank of Romania their financial statements, consisting of elements of the balance sheet and profit and loss account, as well as other data required by the National Bank of Romania. The leading banking company of a group of banks will present the data set out in the previous paragraph both for its own unit and for the whole group. + Article 32 Banking companies are obliged to allow the National Bank of Romania to examine their records, accounts and operations, exclusively for the purposes of banking supervision purposes. + Article 33 Savings banks, mutual aid houses, credit unions, other credit companies, as well as investment funds are also supervised by the supervisory bodies of their own associations. + Article 34 The National Bank of Romania is the only agent of the state tasked to supervise the foreign exchange transactions carried out by banking companies, in which purpose it will determine how to report them. + Article 35 The Ministry of Finance will refer the fiscal irregularities committed by banking companies to the National Bank of Romania. + Article 36 For the supervision of Romanian banking companies operating abroad, the National Bank of Romania cooperates with the banking supervisory authorities of the respective states. Information on foreign banks carrying out activities in Romania can be provided to the banking supervisory authorities of the country of origin, only under reciprocity conditions. + Chapter 4 Deposit insurance + Article 37 In order to protect the rights of depositors, one or more funds may be set up to provide money deposits held by bank companies in favour of individuals. These funds will be able to be constituted by public or private financial institutions or by the Romanian state. They will operate based on the authorization given by the National Bank of Romania and under its supervision. Every banking company that benefits from such deposit insurance will mention this distinctly on its letterhead and its premises. + Chapter 5 Interbank compensation houses + Article 38 In order to compensate and settle the mutual claims of the banking companies, interbank compensation houses may be set up. + Article 39 Apart from compensations and multilateral settlements between banks, interbank compensation houses may facilitate the making of mutual loans between banks within one working day. + Article 40 The compensation houses are established under Law no. 31/1990 and operates on the basis of the authorization of the National Bank of Romania and the specific working norms approved by it. + Chapter 6 Balance sheet, profit and loss account and their control + Article 41 In accordance with its own statute and norms, the National Bank of Romania will establish rules on the balance sheet of banking companies, profit and loss account, accounting and control. + Article 42 The balance sheet of the banking company and the profit and loss account will not be accepted as having legal validity by the authorities in law, without having been verified and signed by the censors committee of the banking company. + Article 43 To verify and confirm the balance sheet, banking companies will be able to use authorized accountants and accountants. + Article 44 The balance sheet and the profit and loss account will be published by the banking company as soon as possible after their approval by the general meeting of the shareholders or other management body, according to the provisions of Law no. 31/1990 on companies and specific regulations issued by the National Bank of Romania. + Chapter 7 Staff of banking + Article 45 The leaders of a banking company answer for their professional activity in front of the general meeting of shareholders and the National Bank of Romania. They must be people with a good reputation, who have not suffered or not been caused by their banking bankruptcies. The National Bank of Romania can also establish other ethical and professional rules and norms for the quality and activity of a banking company leader, as well as for the activity of banking staff. + Chapter 8 Professional secrecy in banking + Article 46 The staff of a banking company subject to the provisions of this law does not have the right to use or disclose, neither during the activity, nor after its termination, facts or data that, become public, would harm the interests or prestige of any banking companies or any of its clients. The above provisions also apply to persons who obtain information, of the nature of those shown, from reports or other official works. + Article 47 Any member of a board of directors, as well as all persons participating in the activity of banking companies, are obliged to keep professional secrecy. The disclosure of professional secrecy may be made only in a judicial proceeding, in accordance with the authorization of the board of directors of the banking company to which it is requested. The staff of the banking company may not, for personal use, use the banking information it holds or which it has become aware of in any way. Provisions of para. 1 and 2 shall also apply to persons who obtain, from the control and surveillance activity or from reports and other official works, information of the nature of those shown above. + Article 48 The name of the depositor or the account holder as well as the operations recorded in his accounts constitute professional secrets. + Chapter 9 Contraventions and penalties + Article 49 The following facts are contraventions if, according to the provisions of the criminal law and the conditions in which they were enjoyed, there are no crimes: a) non-compliance with the norms issued by the National Bank of Romania in application of b) performing fictitious operations and without real coverage. + Article 50 In the cases of contraventions provided for in the previous article, one of the following sanctions may apply only to legal persons: a) written warning; b) the obligation of the banking company at fault to take measures to remedy the effects of the contravention, including the imposition of measures to limit the company's operations; c) the application of fines that cannot exceed 1% of the bank's share capital, if, although warned, the banking company continues the contravention; d) withdrawal of authorisation. + Article 51 Finding of contraventions and application of sanctions provided in art. 49 49 and art. 50 are made by persons empowered by the Board of Directors of the National Bank of Romania. Against the minutes of contravention you can make a complaint to the court within which the contravention was enjoyed. The provisions of this law are completed with the legal provisions on the finding and resolution of contraventions The fines collected are made to the budget of the central state administration. + Article 52 In case of serious violation of banking prudence rules, the National Bank of Romania may decide, on a case-by-case basis, special measures for the supervision and preservation of the banking company to preserve, remedy and restore the financial position of the respective banking companies. + Chapter 10 Final and transitional provisions + Article 53 Banking companies can organize a professional association that represents their collective interests towards public authorities, study issues of common interest, promote cooperation, inform members of the association and the public and organise services of common interest. The professional association of banks will work with the National Bank of Romania. + Article 54 The founders of a banking company, as well as its administrators, directors and censors, who will conceal the cessation of payments situation or violate the authorization granted and the provisions of this law, will be deprived of their quality by decision of the National Bank of Romania, even before the opening of the judicial action. + Article 55 The agreement with the provisions of the present law on the assets and liabilities of the already existing banking companies will be made according to a chart established by the National Bank of Romania. + Article 56 It shall be prohibited to any firm or economic agent that has no operating authorization as a banking company or their staff to use a designation, an advertising form, as well as any expression that might suggest the idea that it is a company Banking. + Article 57 All organizational changes in the activity of banking companies are subject to the provisions on advertising of Law no. 31/1990 31/1990 on companies. + Article 58 This law shall enter into force within 30 days from the date of publication in the Official Gazette of Romania. + Article 59 Within the period provided in art. 58, the National Bank of Romania will develop regulations in application of the provisions of this law + Article 60 On the date of entry into force of this Law, the Decree no. 61 61 of 27 February 1974 on the authorization of the National Bank of the Socialist Republic of Romania and the Romanian Foreign Trade Bank to grant interest on the availability of foreign currency accounts, published in the Official Bulletin no. 25 25 of 1 March 1974, Decree no. 160 160 of 7 May 1986 on the establishment, organization and functioning of the Financial-Banking Council, published in the Official Bulletin no. 27 27 of 9 May 1986, as well as any other provisions to the contrary. This law was adopted by the Assembly of Deputies at its meeting on 25 March 1991. PRESIDENT OF THE ASSEMBLY MARTIAN DAN This law was passed by the Senate at its meeting on March 25, 1991. SENATE PRESIDENT academician ALEXANDRU BIRLADEANU Pursuant to art. 82 lit. m) of Decree-Law no. 92/1990 for the election of the Romanian Parliament and President, promulgam the Law on banking activity and we have its publication in the Official Gazette of Romania. ROMANIAN PRESIDENT ION ILIESCU ---------------------