I. Introduction
Non-Banking Financial Institutions (NBFIs) represent a vital component of Romania's financial system, offering financial services and products complementary to those provided by banks. These entities, regulated by Law no. 93/2009, play an essential role in facilitating access to financing for individuals and legal entities, thereby contributing to economic development and the promotion of financial inclusion.
The scope of activity of NBFIs is varied, encompassing financial leasing companies, credit institutions, factoring companies, as well as other entities offering financial services, excluding traditional banking operations. By the nature of the services provided, NBFIs address a diverse market segment, offering personalised solutions for the financing needs of consumers and small and medium-sized enterprises.
II. The legal framework and applicable regulations
II.1. Law no. 93/2009 on non-banking financial institutions
Law no. 93/2009 constitutes the cornerstone of NBFI regulation in Romania. It defines the operational and supervisory framework under which NBFIs may operate, establishing strict rules on authorisation, minimum capital, solvency and conduct towards consumers. Key provisions include requirements for the establishment and operation of NBFIs, the obligation to obtain authorisation from the National Bank of Romania (NBR) or the Financial Supervisory Authority (FSA), and obligations relating to transparency of information and consumer protection.
II.2. Regulation no. 20/2009
Adopted by the NBR, Regulation no. 20/2009 complements NBFI legislation by detailing authorisation and prudential supervision procedures. It emphasises the importance of maintaining adequate solvency and prudent risk management. The Regulation also introduces detailed requirements for financial reporting and continuous monitoring of regulatory compliance, including strict rules on transparency of information presented to clients.
II.3. Emergency Ordinance no. 50/2010 on consumer credit agreements
Emergency Ordinance no. 50/2010 brought significant changes to the way NBFIs may conclude credit agreements with consumers, aimed at improving information transparency and ensuring a higher level of consumer protection. It introduces the "European Standard Information Sheet", which summarises the financial conditions of the credit, including the interest rate, APR, loan duration, total amount payable and the right of withdrawal.
II.4. Emergency Ordinance no. 52/2016 and its impact on NBFIs
Emergency Ordinance no. 52/2016 amended and supplemented some of the provisions of EO no. 50/2010, further emphasising consumer protection and introducing additional rules on the advertising of credit products. It also brought important clarifications regarding the calculation of the Annual Percentage Rate (APR), providing consumers with better tools for comparing credit offers.
III. Types of NBFIs in Romania
- Credit institutions — offer loans for consumers and professionals, including consumer credit, residential mortgages and SME financing
- Financial leasing companies — allow clients to use movable or immovable assets in exchange for periodic payments, with an option to purchase at the end
- Factoring companies — allow businesses to sell unpaid invoices for immediate access to funds, improving cash flow management
- Payment institutions — offer a range of services including fund transfers, electronic payment systems and electronic money issuance
IV. The functioning and regulation of NBFIs
To operate as an NBFI in Romania, entities must obtain authorisation from the FSA or the NBR, depending on the specific type of financial activities conducted. NBFIs are subject to prudential requirements including minimum capital requirements, exposure limits and rules on liquidity and risk management. They must also maintain an adequate level of own funds relative to the volume and type of activities conducted.
V. The impact of NBFIs on the Romanian economy
One of the most important roles of NBFIs is facilitating access to financing for segments that may not meet the criteria of traditional banks. NBFIs particularly support SMEs, which are the engine of economic growth, through tailored financing solutions such as financial leasing, working capital loans and factoring. NBFIs are also often at the forefront of financial innovation, introducing new products and services that respond to the constantly changing requirements of consumers and businesses.
VI. Challenges for NBFIs
The main challenges include the need to remain compliant with a rapidly evolving legal framework, growing competition from other NBFIs, traditional banks and fintech companies, and access to financing and capital costs — particularly for newly entered market participants or those with a higher risk profile.
VII. Opportunities for NBFIs
Digitalisation offers significant opportunities: the adoption of artificial intelligence in credit processes, diversification of the product and services portfolio, formation of strategic partnerships with fintech companies, and orientation towards sustainability and green finance.
VIII. Future perspectives
The prospects for the NBFI sector are positive: adoption of blockchain technology, expansion into new markets, and green financing. Adaptability, innovation and a client focus remain key elements for the success of NBFIs in the future. The NBFI sector in Romania is reaching a pivotal moment, opening the way for significant opportunities for expansion and technological innovation.
