Inner control within the non-banking financial institutions

Troaca, Victor (2009): Inner control within the non-banking financial institutions.

Abstract

The non-banking financial institutions take an extremely important place inside the financial market and therefore play an apprecialble role in the economy. Taking into account the specific nature of the operations that these operators are authorized to develop, it is necessary for their activity to be subject to an efficient internal control and also to be well-structured. To assure the organization and functionning of an efficient control inside all the non-banking financial institutions, the authority for reglementation and supervision the specific market, namely the National Bank of Romania has adopted a compulsory regulation for these operators, with reference to the inner control. The organization and development of inner control inside the non-banking institutions is a responsability of their board councils, which can assure themselves-by means of an efficient inner control - that the activities developped inside the respective institutions are according to the legal regulations and internal procedures and at the same time the accomplished operations make efficiency and profitableness

• Item Type: MPRA Paper
• Language: English
• Keywords: non-banking financial institution/ inner control/ committe of audit/ inner control organizing
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance > G38 - Government Policy and Regulation; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General

References

1.Order of Government no.28 of January the 2th 2006, regarding the regulation of some fiscal-financial measure, Official Gazette of Romania, Part I, no.89 of January the 31st, 2006

2.The National Bank of Romania, Norm no.18 from September the 5th, 2006 regarding the organization and inner control, administration of significant risks, as well as the development of inner audit of non-banking financial institutions