CREDIT RISK MANAGEMENT WITH THE PURPOSE OF OPTIMIZING THE PERFORMANCES OF THE FINANCIAL INSTITUTIONS

Barbulescu Marinela and Brinzea Victoria-Mihaela
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Barbulescu Marinela: UNIVERSITY OF PITESTI, PITESTI, ROMANIA Author-Name: HAGIU ALINA
Brinzea Victoria-Mihaela: UNIVERSITY OF PITESTI, PITESTI, ROMANIA

Annals - Economy Series, 2014, vol. 1, 208-212

Abstract: Any loan transaction is accompanied by a risk: the probability that the borrower will not honor its commitment. The assessment of the risk is of paramount importance to the lender, since the enterprises are quite frequently facing difficulties (default, bankruptcy), and, since the consequences of these difficulties seriously affect the economy. Regarding the creditor, the existence of this risk affects his hope to earn profit from the lending operations and increases the likelihood of encountering serious difficulties, if the debtor is not able to repay the loan.

Keywords: credit risk; financial institutions; prudential management; ratio; regulation. (search for similar items in EconPapers)
Date: 2014
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