FOREIGN BANKS APPETITE FOR LIQUIDITY RISK AND THE BANKING SYSTEM STABILITY. CASE STUDY FOR ROMANIA

Horaţiu Lovin
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Horaţiu Lovin: Bucharest University of Economic Studies

Theoretical and Applied Economics, 2013, vol. XX, issue Special I, 530-537

Abstract: Foreign banks own a large share of Romanian banking system and proved to be a direct contagion channel for external financial turbulences into the Romanian financial system since September 2008. From the financial stability point of view, liquidity risk emerged as a major source of turmoil for the banking system, being able to cause disruptions in lending activity. Empirical evidence points out a significant impact of credit growth and government fiscal position on liquidity risk management for foreign banks, while term deposits improve banking system resilience.

Keywords: banking sector; liquidity; risk management; contagion; financial stability. (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:xx:y:2013:i:special-i:p:530-537

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