Part II

Along with commercial and bank credit, mutual credit is a fundamental part of any national banking system. Although there is currently only one cooperative credit network operating in Romania, credit cooperatives have a long tradition in the Romanian banking system.

The credit cooperative network, consisting of the central credit union and the credit cooperatives, is a group of credit institutions that conduct banking activities at the national level, with specific territorial limitations at the level of each credit cooperative.

Both central credit unions and credit cooperatives are established and operate in accordance with the general rules regarding credit institutions contained in Government Emergency Ordinance 99/2006. However, given their specific purpose—primarily to assist cooperative members—the law sets forth specific conditions for the organization and operation of members of the credit cooperative network. In addition, strict prudential requirements have been adopted, in accordance with relevant international provisions, namely the Basel II Capital Accord.