CAPITAL ADEQUACY IN THE ROMANIAN BANKING SYSTEM

Socol Adela

Annales Universitatis Apulensis Series Oeconomica, 2008, vol. 1, issue 10, 42

Abstract: The purpose of this paper is to studying the existing national and international criteria and methodologies related to the banking capitals measurement. We examine the minimum requirements for banking capital and the actual status of Romanian banks in terms of solvency ratio. The paper analyzes the risk-based capital ratios through a case study at the level of a banking society from Romania. We quantify the capital charges by reference to the regulatory capital expressed as a percentage of total risk-weighted assets and by reference to the Tier 1 capital expressed as a percentage of risk-weighted assets. Our research reveals that the level of capitalization is relevant for the ability of banks to absorb the losses generated by either exogenous shocks induced by the domestic and international macroeconomic environment, or by the inappropriate management of the endogenous risks associated with banking activity.

Keywords: Solvency Indicators; Adequate Banking Capitalization; Regulatory Capital (search for similar items in EconPapers)
JEL-codes: G21 G24 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://oeconomica.uab.ro/upload/lucrari/1020081/42.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:alu:journl:v:1:y:2008:i:10:p:42

Access Statistics for this article

More articles in Annales Universitatis Apulensis Series Oeconomica from Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia
Bibliographic data for series maintained by Dan-Constantin Danuletiu ().