Only 20% of Pillar III funds to be invested in banks

At the end of August, the distribution of optional pension funds was as follows: 70.77 percent in state bonds, 11 percent in corporate traded bonds, 10.11 percent in bank deposits, and the remainder in shares and mutual funds.

Players will be obliged to maintain a high level of liquidity, and make use of the risk management system, as the externalizing of asset administration and investment of assets will not be allowed. Investments of private pension funds may be placed in a proportion of up to 30 percent of assets in bonds and other commodities issued by Romanian local public administration authorities, states of the European Union (EU) or the European economic space.

For investments in third-party state-issued bonds, the supervisory authority has proposed a limit of 15 percent of assets, while the limit for municipal bonds issued outside the European space is 10 percent.

CSSPP has also proposed sub-limits for each investment category. Lei and foreign currency denominated bank accounts may not exceed 5 percent, the limit that will be applicable also to lei and freely convertible foreign currency denominated deposit certificates in EU banks for a period of up to 180 days.