The National Committee for Macroprudential Oversight (NCMO) General Board decided not to extend the period of implementation of NCMO Recommendation for the implementation of Recommendation on restriction of distributions during the COVID-19 pandemic.

Taking into account the substantial capital reserves and the prospects for the distribution of dividends in the case of credit institutions in Romania, resuming a microprudential approach is deemed appropriate as concerns the assessment of capital adequacy and the dividend distribution plans.

This approach is also substantiated by the small number of such credit institutions and the significant differences in the financial and prudential statements of banks, so that a microprudential approach could be more effective in this context.

It is worth noting that the European Central Bank announced, in July 2021, that it decided not to extend the recommendation that limited dividend distributions beyond 30 September 2021. The decision was adopted after the stress test results were published on 30 June 2021, showing that the European banking sector had sufficient capital reserves to withstand adverse shocks.