Coordinates of the credit institution activity

• Author: Mariana Rodica Tîrlea
• Position: Faculty of Economic Sciences Cluj-Napoca, 'Dimitrie Cantemir' Christian University Bucharest, Cluj-Napoca, Romania
• Pages: 176-183

AGORA International Journal of Juridical Sciences, www.juridicaljournal.univagora.ro

ISSN 1843-570X, E-ISSN 2067-7677

No. 1 (2014), pp. 176-183

176

COORDINATES OF THE CREDIT INSTITUTION ACTIVITY

M. R. îrlea

Mariana Rodica îrlea

Faculty of Economic Sciences Cluj-Napoca,

“Dimitrie Cantemir” Christian University Bucharest, Cluj-Napoca, Romania

*Correspondence: Mariana Rodica îrlea, 56 Teodor Mihali St., 400591, Cluj-Napoca, Cluj,

Romania

E-mail: rodica.tirlea@cantemircluj.ro

Abstract

The Emergency Ordinance no. 99 of 6 December 2006, on credit institutions and

capital adequacy, presents the credit institution as "an entity whose business is to attract

deposits or other repayable funds from the public and to grant credits in its own account". The

2006/48/EC Directive of the European Parliament and the European Council, presents the

credit institution as "an undertaking whose business is to receive deposits and other repayable

funds from the public and to grant credits for its own account" definition that seems

appropriate, justified by the fact that, in our opinion, the concept of undertaking is assigned to

those innovative and imaginative companies that produce goods. Since money is a commodity

and economic agents that we call credit institutions produce money by reinventing themselves

every day to keep up with technology, we consider that the idea of “undertaking” formulated

by the 2006/48/EC Directive of the European Parliament and of the European Council is

appropriate and that these credit institutions be hereinafter referred to as undertakings and

therefore enterprises. We believe that the enterprise, in our case, the credit institutions, is a

matter that produces, consumes and trades services in order to achieve positive economic

effects therefore saving and lending are their direct support. Moreover, credit is the source for

financing growth and welfare, therefore the engine of the capitalist economy.

Keywords: credit institution, specific conditions, authorization, general conditions,

credit, savings, undertaking, enterprise

Introduction

1. Coordinates of the "credit institution" theoretical concept

In light of the Emergency Ordinance no. 99 of 6 December 2006, On credit institutions

and capital adequacy, published in the Official Gazette no. 1027 of 27 December 2006, article

3, paragraph (1), clause 10, the credit institution is presented as "an entity whose business is to

attract deposits or other repayable funds from the public and to grant credits in its own

account".

In the understanding of the Emergency Ordinance, by public, one should understand

"any natural person, legal person or entity with no legal personality, that doesn’t have the

necessary knowledge and experience to assess the default risk of an investment. The items that

do not fall into this categoryare: the state, central, regional and local public administration

authorities, government agencies, central banks, credit institutions, financial institutions and

other institutions”1.

The 2006/48/EC Directive of the European Parliament and the European Council,

defines the credit institution as "an undertaking whose business is to receive deposits and other

1 Emergency Ordinance no. 99 from the 6th of December 2006, On credit institutions and capital adequacy,

published in the Official Gazette no. 1027 of the 27th of December 2006.