Challenges for Banks in Romania in the International Economic Crisis (original) (raw)

The Implications Of The Global Crisis On The Financial Performances Of The Romanian Banking System

2010

The increase of financial crisis in 2008 helped to bring the recession in developed countries and the reduction of acceleration in the economies of emerging countries. Moreover, the degree of vulner-ability in emerging countries has increased through their dependence of external financing. Mutual potentiation of negative developments in financial markets and the real economy determinates a vola-tile environment, stressing the

The Romanian Banking System -Past, Actuality, Perspectives

Annals of Faculty of Economics, 2012

The way crossed by the Romanian banking system until the present time is one governed by profound reforms which have been made in regards to the European Union. The strategies embraced by Romanian banks, in 1990 and until the present time, are meant to develop and to improve the performances so that they can compete with European banks and they can respond in an efficient manner to the customers' needs. The purpose of this paper is to underline the main stages of evolution of the Romanian banking system since 1990 and to lay emphasize the perspectives on its evolution in the context of the actual economic crisis. By going through the stages previously mentioned in this paper , we can see that the Romanian banking system evolved positively, from the moment of the transition to the market economy, but in order for it to be functional and to contribute to the development of the economy as a whole, aspects related to the the supervision of the financial stability should be taken into consideration and in order to assure the stability of the financial system, the increase of the administrative capacity of the Central Bank should be considered, as well as balancing the structure of the creditation process, on coins, the improvement of the banking assets' quality, the qualitative study of the NBR's surveillance process, managing the contagion risk, etc. In order to achieve these objectives, the documentation by the investigation of a significant volume of works has been done, by scientifically acknowledged publications, analysis being applied, by deduction method and a significant volume of quantitative information was submitted to professional judgment. Concerns regarding this subject have been found in various paper works and in specialized books. We mention here the doctoral thesis of Elena Teodorescu Georgescu "The evaluation pattern of credit institutions' prudential surveillance efficacy", the author of this work David Delia, with the work "Contributions regarding the improvement of the banking accountancy dealing with credits granted to non-financial clients" and so on. An outstanding attention payed to this subject was the one of the governor of the National Bank of Romania, Mugur Isarescu, who issued a series of articles and books on this subject. Also, Silviu Cerna, Aurelian Paul Berea, Vasile Dedu, Nicolae Danila approached in their books the problem regarding the evolution of the Romanian banking system. The National Bank of Romania offers to its users, information regarding the evolution of the banking industry through the Reports of Financial Stability and The Annual Report. The results of the research and the general conclusions regarding the concern on the evolution of the Romanian banking system are presented at the end of the work.

Trends Regarding the Evolution of the Romanian Banking System in Relation to the Ones Belonging to Central and Eastern European Countries

Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie, 2014

This paper aims at highlighting the aspects concerning the impact suffered by the Central and Eastern European banking systems since the onset of the financial global crisis. The focus of the paper is on the position of the Romanian banking system in relation to the Central and Eastern European countries, mainly those countries which were former members of the Communist bloc, in terms of both the prudential and banking profitability indicators. Hence, a comparative case study has been conducted, at a macroeconomic level, regarding the evolution stage of the Romanian banking system in the context of the financial crisis, based on several representative banking systems in Central and Eastern Europe such as Czech Republic, Hungary, Poland and Russia. The conclusion from these studies is that in Romania, the banking system has made significant progress over the transition to a market economy, as the Romanian banks have been embracing banking strategies intended to improve performance. H...

Structural and Qualitative Analysis of the Romanian Banking System

Economics and Applied …, 2010

The banking sector, the predominant component of the Romanian financial system, had a relatively stable structure in the period 2005-2009 and has experienced significant consolidation, particularly in the years 2005-2006, this being sustained mainly by the restructuring and privatization process, but also by Romania's EU accession perspective and the competitive environment in this area. Given the new status of Romania as EU member country, the competition in the banking system has increased significantly, leading to both structural changes, but also to changes in levels of analysis indicators of banking structure and performance. Following this analysis, it appears that, recently, our country's banking system saw a dynamic and unprecedented diversification resulting from the economic development of the society and adaptation to EU requirements, and we can say that in Romania there is, now, a modern and competitive banking system, which provides circulation of the domestic economy and provides banking products and services in accordance with trends in the European banking sector.

Some Problems on the Romanian Bank Segment in the European Union

Eirp Proceedings, 2010

Present article is the take a short glance at the Romanian bank segment after the accession to the European Union. The analysis deals with three major topics. In the first part the regulation environment is in focus, dealing mostly the actual situation of the preparation works in the banks. The second part is dedicated to market environment, market players, ranges of products and the technical-technological background. The third part is about the macroeconomic environment of the Romanian bank segment. The aim of the article is the take a short glance at the Romanian bank segment one year after the accession to the European Union. The analysis will focus on three major topics: regulation environment, market environment and macroeconomic environment of the bank segment in Hungary. Regulation environment It can be told about the legal regulation of the bank segment that the legal regulation system is considerably similar, almost the same, due to the structural reforms and the legal harmonization process of the last fifteen years. The main task of Romanian banks is related to the regulation environment: the preparation for meeting the capital requirements of Basel is in process at full speed, which will be obligatory also for the already EU member Romanian bank segment from 2006. Let us have a look at this issue in details.

The Analysis of Financial and Prudential Banking Indicators in the Romanian Banking Sector During the Crisis and Postcrisis

2015

The current dynamics of the worldwide banking system and the changes that have taken place generally in the banking systems around the world and particularly in the banking system in Romania, became the main reason we chose to make the research in this field. The Romanian banking system has gone through several steps in order to achieve the convergence to international provisions. The financial and prudential banking indicators are important signals of health of the banking sector as a whole, and their study has been a constant concern for various national and international financial institutions such as National Bank of Romania, IMF, ECB, World Bank but also for the researchers in the field, and their analysis in the Romanian banking system represents a research of great topical interest.

Structural and qualitative analysis of the Romanian banking system in the context of European monetary integration

The banking sector, the predominant component of the Romanian financial system, had a relatively stable structure in the period 2005-2009 and has experienced significant consolidation, particularly in the years 2005-2006, this being sustained mainly by the restructuring and privatization process, but also by Romania's EU accession perspective and the competitive environment in this area. Given the new status of Romania as EU member country, the competition in the banking system has increased significantly, leading to both structural changes, but also to changes in levels of analysis indicators of banking structure and performance. Following this analysis, it appears that, recently, our country's banking system saw a dynamic and unprecedented diversification resulting from the economic development of the society and adaptation to EU requirements, and we can say that in Romania there is, now, a modern and competitive banking system, which provides circulation of the domestic economy and provides banking products and services in accordance with trends in the European banking sector.

The direction of the financial sectors involvement in overcoming crisis: A case study of Romania

African Journal of Business Management, 2010

In the present economic circumstances of economical-financial crisis on a worldwide level, for the Romanian economy, the financial sector, being a key factor, have a great importance for supporting economic growth. The aim of this paper is to analyse the finance-growth relation in Romania, using quarterly data and applying statistical methods for a period of nine years. As such, we measure the qualitative development in the banking sectors using the interest rate margin and the value of total credit. Due to specific characteristics of the economic situation in Romania and other previous studies related to economic growth and credit market development, our results provide the answer to the question of whether or not the economic growth rate is always sustained by the financial sector development. The major findings and conclusion are that, in Romania, a short-run increase of bank loan and interest rate margin determines a decrease of economic growth, given by the coefficients of regression equation.

Banking Models Under the Impact of the Post-Crisis Organizational Changes Apt to Confer Sustainable Financial Stability-Romanian Experience

The AMFITEATRU ECONOMIC journal, 2012

The global financial crisis led to substantial changes in the operating environment of banks. Reforming the regulatory framework of financial and banking activity and the increase role of state in banking systems in many countries are important factors that involve major changes in the organizing of banking activity, the strategies adopted, the business models practiced, etc. Based on these considerations, the paper examines trends in banking models after the 2007 crisis. The analysis of the banking models is performed from the perspective of the deep organizational changes that affected the banking environment and sustainable financial stability. The study focuses on the analysis of the banking sustenability and the business model in the Romanian banking system, in the context of the post-crisis organizational changes. The profound interdependence of the Romanian banking system with the banking systems of the European countries and the international tendencies in financial regulation are important factors that influence the business models of the Romanian banks. The banking model practiced in Romania continues to be the traditional one. Currently, the most important challenges of the Romanian banking system are the growth of the non-performing loans, the loans in foreign currency to unhedged borrowers, the pressure to meet the Basel III requirements, as well as the possibility that the exposure of foreign banks towards Romania to decrease.