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

Ioan Nistor (), Mirela-Oana Pintea () and Maria Ciupac-Ulici
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Ioan Nistor: Babes Bolyai University, Faculty of Economics and Business Cluj-Napoca, Romania

Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), 2010, vol. 2010SE, 149-160

Abstract: 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 difficulties of forecasting the magnitude of the impact on short and medium term of the global crisis on macroeconomic developments in our country. Romanian banking sector is very affected, there are made changes of interest rate of monetary policy, of interest rates charged on loans and deposits, while the banks’ bad debts are increasing. The year 2009 brought with it the decrease in the financial performances of the credit institu-tions especially due to the constitution of provisions for the outstanding loans. The provisions exploded at the beginning of the year, conditions in which banks have recorded losses in January and February and, despite a slight recovery in March, first quarter results ware negative. On the other side the operational profits are still good so it depends on how each bank will be able to deal with the loans with problems in order to obtain a decrease in their provisions. The banking system from Romania should find rapid solutions in order to improve their financial results through to improving the banking indebtedness for the entities depending on credits and in this way it contributes to accelerate the process of businesses development through credits.

Keywords: banks; provisions; loans; profitability; solvency; liquidity. (search for similar items in EconPapers)
JEL-codes: G21 H81 (search for similar items in EconPapers)
Date: 2010
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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