From 1998 to 2002, FSVC, with funding from the U.S. Agency for International Development (USAID), supported the development of Romania’s financial sector through targeted reforms in pension systems, insurance, capital markets, commercial banking, and central banking.
FSVC’s technical assistance program provided customized training and support to public and private financial institutions across Romania, focusing on strengthening institutional capacity and promoting sustainable development within the financial sector. Key counterparts included the National Bank of Romania, the Ministry of Labor, private commercial banks, insurance companies, securities market participants, and self-regulatory organizations.
Program Impact
- Pension Reform: FSVC facilitated the establishment of a sustainable multi-pillar pension system by designing a legislative and regulatory framework for private pension funds, and developing strategic plans for implementing second- and third-pillar pension systems. FSVC also trained prospective investors in basic investment principles, and Ministry of Labor and parliamentary staff in pension reform issues.
- Insurance Reform: FSVC supported the creation of a competitive and market-responsive insurance sector by establishing a pilot diploma program with the Insurance Institute and providing training for private insurance companies.
- Capital Markets Reform: FSVC improved the transparency, liquidity, and competitiveness of Romania’s capital markets, and provided technical assistance on issuer disclosure documents and derivatives market regulation, corporate governance and disclosure practices, and market integration through the adoption of best practices and international collaboration.
- Commercial Banking: FSVC bolstered the institutional capacity of Romanian banks by offering technical assistance on risk management, strategic planning, and product development.
- Central Banking Reform: FSVC advanced Romania’s central banking infrastructure by advising the National Bank of Romania on monetary policy and payment systems, supporting the establishment of a Monetary Policy Department, aiding in the acquisition of inter-bank and retail payment systems, and helping develop proprietary econometric modeling capabilities.