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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LAW No. 33 of 29 March 1991 concerning banking activity published in PARLIAMENT ISSUING OFFICIAL GAZETTE NR. 70 of 3 April 1991, the Parliament of Romania adopts this law.


Chapter 1 General provisions Article 1 the banking business in Romania takes place through the National Bank of Romania and by banking companies established on the basis of law No. 31/1990 as commercial companies.


Article 2 of Romania's National Bank is the Central Bank of the Romanian State, having legal personality. It is the sole issue of the State and establish regulations in the fields of monetary, credit, foreign exchange and payments. National Bank of Romania refinance banking companies and provide liquidity to the banking system.
National Bank of Romania to supervise the activity of all the banking companies.
At the same time, the National Bank of Romania will promote, regulate and supervise the activities of banking intermediation.
Tasks of the National Bank of Romania are set out in the status of establishment and operation approved by law.


Article 3 banking companies are legal entities whose main activity is to attract funds from legal entities and physical persons, in the form of deposits or negotiable instruments payable at sight or term, as well as the granting of credits.


Article 4 organisational structure, leadership and management of the banking companies are established through its own statutes.
The banking company is employed only by the signatures of at least two leaders having the functions laid down in the statutes.


Section I banking companies, the Romanian legal person Article 5 banking companies, legal entities, shall be set up in compliance with the provisions of law No. 31/1990 on companies; they may not be constituted as a limited liability company. Banking companies can be founded and operate solely on the basis of the authorization issued by the National Bank of Romania.


Article 6 Documentation to be submitted for the authorization and the conditions under which it may be granted shall be laid down in the rules of the National Bank of Romania.
National Bank of Romania will set standards for the minimum amount of share capital and share at least vărsămînt at the time of subscription, which may not be less than 50%, and the subscription period.


Article 7 conditions under which the authorisation may be withdrawn, so when the withdrawal is imposed by law, and when it is required by the banking company, shall be determined by the rules of the National Bank of Romania.
All permits issued and the force will be highlighted by the National Bank of Romania in a register, which will be permanently accessible to the public.


Article 8 social capital subscribed must be fully paid-up term of up to two years from the date on which the company is incorporated.
The subscribed capital shall be paid up in monetary form.


After the legal Constitution of article 9, the banking company will have to clearly identify, in its official documents, through a minimum of data: full name and company social capital subscribed, principal office address, the number and date of registration in the commercial register.


Article 10 if the merger, dissolution, liquidation or bankruptcy of banking undertakings, applies the provisions of law No. 31/1990 concerning commercial companies, as well as the special rules and express opinions of the National Bank of Romania, given the specific nature of banking.


Article 11 the fusion of two or more corporations banking shall be declared by each company, according to the Bank's own statutes. In advance of commencement of its work, the resulting banking company as a result of the merger is required to obtain the authorization of the National Bank of Romania.


Article 12 shall be prohibited from banking Firms to sign contracts or arrangements, to adopt practices of any kind that they would ensure the dominant position on the market for foreign exchange, monetary or financial times to engage in operations to obtain unfair advantages for themselves or for third parties.
National Bank of Romania has the right to introduce legal action whenever found to breach the provisions of this article.


Section II-of the subsidiaries and branches Regime from Romania of banks, foreign legal persons Article 13 the establishment, operation and liquidation of subsidiaries of companies from Romania, foreign legal persons shall be conducted according to law. 31/1990 on the companies, after recognition of those corporations as legal entities foreign bank, subject to the conditions established by law.
Opening in Romania of branches of foreign legal entities banks takes place in accordance with the provisions of the legislation on the operation of companies in Romania and the representative offices of foreign economic organizations.


Article 14 the exercise of the medical profession and the banking operations of bank subsidiaries and branches. 13 of the present law are subject to the authorisation of the National Bank of Romania, in accordance with its policy towards foreign banks in Romania.


Chapter 2 article 15 the banking business in their business, banking companies shall be subject to the rules and regulations issued by the National Bank of Romania for the implementation of monetary policy, credit, currency, finance, banking and insurance supervisory prudentei of banking companies.


Article 16 All banking companies are obliged to open accounts at the National Bank of Romania and to maintain minimum reserves according to the rules given by it.


Article 17 banking companies can open the National Bank of Romania and other accounts, the terms set out therein.


Article 18 banking companies can perform operations and deposits, accounts, cash and securities 16.00 in attracting of monetary resources from legal entities and individuals, in order to preserve their and fruit bearing. Deposits may be interest-bearing.


Article 19 through the short-term credit means any kind of transaction of loan monies for a period not exceeding 12 months. Sub-loans whose repayment duration is between one and five years old are medium-term loans, while those exceeding five years are long-term loans.
The granting of credit, banking companies will ensure that applicants submit their credibility for reimbursement at maturity. To this end, they may ask applicants to guarantee the loan with movable and immovable property.


Article 20 After approval of credit, banking companies cannot cancel or reduce the amount thereof than in duly justified cases, arising from the provision by the borrower's current data, and only after the expiry of a period of notice of at least five days, which will be communicated in writing to the debtor.
Banking companies may immediately, without prior notice, the debtor's use of a loan approved, where the debtor has violated the terms of the contract or where the economic and financial situation of it no longer ensure repayment.


Article 21 All credit and guarantee operations of banking firms will be recorded in the contract documents clearly indicating all terms and conditions of such transactions. Copies of these documents will be kept by the banking companies and made available to authorized personnel of the National Bank of Romania, at the latter's request.


Article 22 banking companies can buy, sell, hold in custody and manage monetary assets, can execute transfers, clearing operations and other non-cash transactions, on their own account or for account of a third party.


Article 23 banking companies may receive titles as security or in storage. These securities may not be pledged by the company, and that bank may not exercise voting rights related to their respective titles.


Article 24 banking companies can perform under the law and within the limits of the authorization granted, and of the means available to them, and related activities such as foreign exchange operations; operations with precious metals, objects made from these and other values with a high degree of liquidity; placement, underwriting, management, storage and trading of securities; banking consulting; safeguards; attorneys and other legal activities which can be undertaken on own account or for account of customers.


Article 25 banking Company cannot carry out the following operations: a) engaging in transactions with movable and immovable property. Real estate transactions are exempt for the banking company's business and for the use of employees, as well as transactions with movable and immovable property in execution of claims;
  

(b) purchase or own) pledging their bank debt account. Redemption of own shares shall be exempt in order to reduce the share capital, which shall be subject to prior authorisation on behalf of the National Bank of Romania;
  

c) granting loans to customers, subject to the sale or purchase of shares of the Bank;
  

d) receipt of deposits, securities or other valuables, when banking company is located in the State of cessation of payments;
  

e) engaging in deposit operations, though most come from deposits at Bank employees. It exempts investment funds operations and other financial transactions based on the mutualitatii principle.
  


Article 26


Through operating authorizations can be specified prohibited activities and operations, other than those referred to in article 1. 25 of this law.


Article 27 banking companies will allocate 20% of the annual gross profit for formation of reserves until the Fund thus constituted the equivalent capital, then a maximum of 10% until the Fund has gotten two times higher than the capital. After reaching this level, the allocation of the reserve fund amounts will be made from net profit, on the basis of a decision of a Board of Directors of banking companies.
Banking companies can constitute risk funds to cover any loans that cannot be recovered, both from gross profits to a maximum of 0.5% of total loans, as well as from the net, as well as other funds.


Chapter 3 of the regulation and supervision of banking activity Article 28 participation by an undertaking in a banking company or undertaking whose main activity is unconnected with the banking business may not exceed 20% of the share capital of the company or enterprise.


Article 29 loans granted by a bank to a single debtor company may not exceed 20%, aggregate capital and reserves of the respective company and banking.
It is considered a single debtor any person or group of natural or legal persons who are economically related among themselves. Sub-loans granted to borrowers who are in special relationships with the banking company or its staff, including family, will be permitted only under conditions and regulations issued by the National Bank of Romania.


Article 30 banking companies are obliged to communicate to the National Bank of Romania credits their customers, exceeding the minimum amount for reporting established by the National Bank of Romania.


Article 31 banking companies are obliged to submit monthly Banca Naţională a României their financial situations, developing from elements of the balance sheet and the profit and loss account, as well as other information required by the National Bank of Romania.
Leading banking company to a group of banks shall submit the data referred to in the preceding paragraph for his own unit, as well as for the entire group.


Article 32 banking companies are obliged to allow the National Bank of Romania to examine records, accounts and transactions, exclusively for banking supervision purposes.


Article 33 Houses, savings, credit unions and other credit companies, and investment funds are supervised by the supervisory bodies of their own associations.


Article 34 National Bank of Romania is the only agent of State tasked to oversee foreign exchange transactions conducted by banking companies, in which purpose will determine how their reporting.


Article 35 the Finance Ministry will submit to the National Bank of Romania about the irregularities committed by the taxation of banking companies.


Article 36 For the Romanian banking supervision companies that operate abroad, National Bank of Romania shall cooperate with the banking supervisory authorities of the States concerned.
Information on foreign banks conducting in Romania can be supplied to the banking supervisory authorities of the country of origin, only under conditions of reciprocity.


Chapter 4 Article 37 deposit insurance in order to protect the rights of depositors, it may create one or more funds for deposit insurance money held by banking companies in favour of individuals.
These funds may be established by public or private financial institutions in times of the Romanian State. They will operate on the basis of the authorisation given by the National Bank of Romania and under its supervision.
Every banking company benefiting from such insurance schemes will mention this separately on its header and at its headquarters.


Chapter 5 compensations Homes interchange Article 38 in order to compensate for the overall settlement and mutual debt of the banking companies can set up houses of interbank compensation.


Article 39 apart offsets and multilateral disbursements between banks, interbank compensation offices can facilitate the making of loans between banks on reciprocal within one working day.


Article 40 of the Homes set up compensation based on law No. 31/1990 and operates on the basis of the authorization Banca Naţională a României and specific work rules approved by it.


Chapter 6 balance sheet, profit and loss account and their control in article 41 in accordance with the Statute and the rules of its own, National Bank of Romania will set rules on balance sheet banking firms, the profit and loss account, keeping of accounting and control them.


Article 42 of the company's balance sheet and Bank profit and loss account will not be accepted as having legal validity by the law without having been checked and signed by the auditing Commission of the company.


Article 43 For verification and confirmation sheet, banking companies will be able to use licensed accountants and certified public accountants.


Article 44 the balance sheet and the profit and loss account will be published by the Bank in the society as soon as possible after their approval by the general meeting of shareholders or of another organ of leadership, according to the provisions of law No. 31/1990 on the companies and the specific regulations issued by the National Bank of Romania.


Chapter 7 banking firms Staff Article 45 managers of a company responsible for banking activities in front of the general meeting of the shareholders of the National Bank of Romania. They must be persons of good repute who may not have suffered or have caused through their bank failures. National Bank of Romania may establish rules and norms and other ethical and professional quality and activity of a manager of the company, as well as for banking activity banking staff.


Chapter 8 of professional secrecy in the banking business to a company Article 46 Bank Staff subject to the provisions of this law shall not be entitled to use or disclose, neither during nor after it has stopped raining, facts or data, which are made public, it would harm the interests of any prestige banking companies fold or any client. The above provisions shall also apply to persons who obtain information on the nature of those auditioning in reports or other official papers.


Article 47 any member of a Board of Directors, as well as all persons who participate in the activity of banking companies are obliged to keep professional secrecy. Disclosure of professional secrecy can only be made in terms of legal proceedings, in accordance with the authorization of the Board of Directors of the Bank which require it.
The company's banking staff may not wear out in personal banking information, held or who took the knowledge in any way.
The provisions of paragraphs 1 and 2. 1 and 2 shall also apply to persons who obtain, from control and surveillance activity or of reports and other official papers, information on the nature of those shown above.


Article 48 the name depunatorului or the account holder, and recorded in his accounts operations constitute trade secrets.


Chapter 9 Offences and penalties Article 49 the following facts Constitute offences if, under the provisions of the criminal law and the conditions in which they were committed, are not crimes: a) rules issued by the National Bank of Romania in application of this law;
  

b) fictionalized and real without coverage.
  


Article 50 in cases where offences referred to in the preceding article may be applied, only legal persons, one of the following sanctions: a) written warning;
  

b) obliging banking in society without fault take remedial action measures of the effects of the contravention, including the imposition of the measures for curbing the company;
  

c) applying fines may not exceed 1% of the share capital of the Bank, if, though avertizata, banking company continuing offence;
  

d) withdrawal.
  


Article 51 the finding contraventions and penalties provided for in article 10. 49 and art. 50 are made of specific individuals authorized by the Board of Directors of the National Bank of Romania.
Against the minutes of misbehavior can be done from within the Court complaint in which illustrious irregularity. The provisions of this law shall be completed with the laws concerning the establishment and settlement irregularities.
Fines collected revenue in the budget shall be made to the Central Administration of the State.


Article 52 in case of violation of the rules of prudence Bank, National Bank of Romania may decide, on a case by case basis, specific measures of supervision and banking society conservation to preserve, repair and restore the financial position of the company.


Chapter 10 final and transitory provisions Article 53 banking companies can organize a professional association to represent collective interests towards public authorities, to study issues of common interest, to promote cooperation, to inform members of the Association and the public and to organize the services of common interest. The Professional Association of banks will work with the National Bank of Romania.



Article 54 the founders of a company, as well as managers, directors and censors its termination will covering the situation of paying or will violate the authorization granted and the provisions of this law, will be deprived of their membership under the decision of the National Bank of Romania, even prior to the initiation of judicial action.


Article 55 of the Implementation Agreement with the provisions of this law of the Bank's assets and liabilities existing firms will be made according to a set of National Bank of Romania.


Article 56 shall be prohibited for any company or operator does not have the authorization of the Bank or company operating as their staff to use a name, a form of advertising, and any expression that might suggest the idea that banking is a business.


Article 57 All organisational changes which have occurred in the activity of banking companies are subject to the provisions of law No. 31/1990 on the companies.


Article 58 this Act shall take effect within 30 days of its publication in the Official Gazette of Romania.


Article 59 within the time limit provided for in art. 58, National Bank of Romania will develop regulations pursuant to the provisions of this law.


Article 60 on the date of entry into force of the present law shall repeal the Decree nr. 61 of 27 February 1974 on the approval of the National Bank of the Socialist Republic of Romania and the Romanian Foreign Trade Bank to pay interest from the accounts in foreign currency availability, published in the Official Gazette nr. 25 of 1 March 1974, Decree nr. 160 of 7 May 1986 concerning the establishment, organization and functioning of the financial-banking Council, published in the Official Gazette nr. 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.
The PRESIDENT of the ASSEMBLY of DEPUTIES this MARTIAN D was adopted by the Senate at its meeting on 25 March 1991.
Academic SENATE PRESIDENT ALEXANDRU BÂRLĂDEANU pursuant to art. 82 lit. m) of Decree-Law No. 92/1990 to elect the Parliament and President, promulgăm law concerning banking activity and we have its publication in the Official Gazette of Romania.
ROMANIAN PRESIDENT ION ILIESCU — — — — — — — — — — — — — — — — — — — — —