Canada    FinTech Guide    Chapter 7    Romania

7. Loan Services / Factoring / Loan Broking / Finetrading
Romania  Romania

There are no reservations with respect to the loan-giving, factoring, brokerage, finetrading and ancillary services in Romania. In the last years, there has been an increased emphasis on consumer protection in the financial field, with the consumers and the National Authority for Consumer Protection submitting various claims in front of the courts in relation to abusive clauses.

Legal Affairs

Loan-giving, factoring and finetrading: Any type of crediting activities performed in Romania are supervised by the National Bank of Romania and entities performing such activities must obtain a license either as a credit institution or as a non-banking financial institution. Factoring and finetrading services are also classified as crediting activities, thus requiring a prior authorization of the entity providing the services. Such services may also be performed by entities authorized as credit institutions in other Member States of the European Union based on the passporting provisions. The minimum share capital requirement of a credit institution may vary and is calculated in accordance with the law on credit institutions and the regulations of the National Bank of Romania. The licensing requirements are generally in line with the European Union banking legal framework. The minimum share capital of a non-banking financial institution is of EUR 200,000 or EUR 3,000,000, depending on the types of activities performed and the size of the balance sheets of the relevant entities. Loan-brokerage: The loan-brokerage activity is regulated under Romanian law in relation to loans granted to consumers. An entity providing mortgage loans brokerage services must register itself with the National Authority for Consumer Protection as a mortgage credit intermediary. In order to obtain a license as a mortgage credit intermediary, the relevant entity must: (i) obtain a professional insurance in the amount of EUR 460,000 for each individual claim and, in aggregate, EUR 750,000 per calendar year for all claims; (ii) register itself as a personal data operator with the National Supervisory Authority for Personal Data Processing and; (iii) prove that: 1. it has a good reputation; 2. it has an appropriate level of knowledge; and 3. no insolvency proceedings are opened against it. Mortgage loans brokerage services may also be performed by entities authorized in other Member States of the European Union as credit intermediaries based on the passporting provisions. With respect to credit intermediaries for loans other that mortgage loans, although there are certain requirements such entities have to comply with in relation to the information provided to consumers, no license is required.

Economic Conditions

The credit intermediaries market (including intermediaries providing their services online) was valued at RON 1.5bn in 2016, with more than 150 credit intermediaries acting across Romania. The factoring services market (including entities providing factoring services online) was valued at over EUR 4bn in 2016, registering a 10% increase compared to 2015.

Contributing Authors

Tuca Zbârcea Asociatii

Gabriela Anton
Bucharest, Romania

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018