Part I

Along with commercial and bank credit, mutual credit is a reality in 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 local credit cooperatives, is a group of credit institutions that conduct banking activities nationwide, 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 governing credit institutions set forth in Government Emergency Ordinance 99/2006. However, given their specific purpose—primarily to assist their members—the law establishes 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.

Keywords: cooperative credit organization