Recent Legislative Changes Impacting The Crediting Business And The Secondary Markets For Banking Assets

Relevant Legislative Changes. Overview

In a banking sector challenged by a high number of non-performing loans, which exceeds the European Union average, an impressive number of legislative initiatives have been promoted by the Romanian Parliament in recent years, particularly during 2016. The promoters of these initiatives cited the need to adopt these measures in order to protect consumers who had taken out loans for which, for various reasons, they faced difficulties in repaying.

The proposed enactments have been the subject of intense public debate, involving the main actors of the banking system: banks, consumers' associations and the National Bank of Romania (BNR), but also legal practitioners and economists. Legal principles, economics and business rationale have been raised to support conflicting views on the benefits versus the negative effects of these laws on consumers, the banking market and other related sectors, such as the real estate market.