Camera de Comert Elvetia - Romania / Chamber of Commerce Switzerland - Romania

The new Banking Law has brought an extension and specification of the relevant legal banking terminology. The key word “credit institute” now stands for banks, credit cooperatives, building and loan associations and all other organizations similar to the banks. Furthermore the appearance and definition of that terms like associated companies, financial holdings or associated operating groups of persons should be greeted as a significant improvement.

Compared to the original version of the Banking Law, the scope of permitted banking activities has been extended by the new Banking Law. Apart from the enumeration of the classical banking activities (e.g. acceptance resp. granting of credits, payments, bank transfers, issuance of guarantees, transactions on own account or on account of clients etc.), new types of transactions such as futures and option contracts, placement and management of securities and other financing instruments are mentioned, as well.

According to the provisions of the new Banking Law, duly authorized employees are also permitted to occupy the position of Head of the Bank, notwithstanding the obligation to be members of the Management Board. The Head of the Bank shall be in any case an employee of the bank, and can be a member of the Management Board. The Head of the Bank is in charge of the effective daily business of a bank. In the event that the Heads of the Bank are at the same time members of the Management Board, the Management Board has to be built up in a manner in which the managing directors, which are not Heads of the Bank, represent the majority of its members. This means that according to the new regulations, the power to represent a bank in relation to third parties can be delegated to so-called “authorized representatives” (which are not members of the Management Board).

The means by which a capital increase may be performed have been limited by the new Banking Law. Capital cannot be raised by means of reserves from differences in exchange or differences from the reevaluation of assets.

The function of censor of a joint stock company is performed by a chartered audit accountant in case of credit institutes. The audit can only be executed by authorized audit companies (and not auditors, which are natural persons) on the basis of a service agreement concluded with the credit institute.

 

Attorneys – Tax Advisers – Auditors

28C, General Constantin Budisteanu Str., RO-010773 Bucharest

Tel.: 0040 21 312 58 88

Fax: 0040 21 312 58 89

E-mail: nslbuc@noerr.ro