ROMANIA Law and Practice Contributed by: Sergiu-Traian Vasilescu, Luca Dejan, Bogdan Rotaru and Ana-Maria Bută, VD Law Group
grammes like IMM Invest ease collateral require - ments. For corporates, underwriting is more complex and involves financial due diligence, industry risk analysis, credit ratings, and structured financ - ing. Loans are highly customised, often includ - ing syndicated financing and flexible repayment structures. While consumer loans follow strict rules, SME and corporate loans depend largely on bank risk policies, but all lenders must comply with BNR credit risk regulations. 4.3 Sources of Funds for Fiat Currency Loans In general, loans in Romania are funded through bank deposits, lender-raised capital, securitisa - tion and P2P lending, each with different regula - tory implications. Bank deposits are the main source for banks, strictly regulated under BNR rules, includ - ing reserve requirements and deposit guaran - tees. Banks must hold a portion of deposits as reserves with BNR, ensuring liquidity and finan - cial stability. Depositors are protected through the Bank Deposit Guarantee Fund, which guar - antees deposits up to EUR100,000 per deposi - tor in case of a bank failure. Lender-raised capital, including bonds, equity and interbank loans, follows capital markets laws and BNR prudential regulations. The issu - ance of bonds and raising of capital through equity is regulated by Law No 297/2004, ensur - ing transparency and fairness in the capital mar - kets. Interbank lending is governed by regula - tions that ensure liquidity and the solvency of financial institutions, with BNR overseeing capi - tal adequacy and risk management.
Securitisation allows banks to sell loan portfolios to investors, freeing up capital for new loans. This process is regulated by Law No 31/2006, which sets the rules for structuring and issuing asset-backed securities. P2P lending is emerging and is governed by the EU Crowdfunding Regulation (Regulation (EU) 2020/1503), providing a framework for platforms that match borrowers with lenders. While the regulation is relatively lighter in oversight com - pared to traditional banking, it includes increas - ing consumer protection measures, requiring platforms to adhere to transparency and risk- management standards. 4.4 Syndication of Fiat Currency Loans Syndicated loans are seen in Romania, espe - cially for large-scale financing. The process involves lead arrangers or bookrunners who negotiate loan terms with the borrower and invite other financial institutions to join the syndicate. Each lender contributes a portion of the loan and shares in the risks and rewards. The loan’s terms are documented in a syndicat - ed loan agreement. Syndicated loans in Roma - nia are governed by the Romanian Civil Code, Banking Law, and EU regulations, with oversight from the BNR to ensure financial stability and compliance with Basel III requirements.
5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails
Generally, payment processors in Romania or anywhere within the EU must use existing pay - ment rails, generally compliant with the EU’s PSD2 and SEPA framework.
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