THE QUALITY OF LIQUIDITY RISK MANAGEMENT IN COOPERATIVE BANK UNIREA BRASOV

Carmina Elena Constantinescu, Liliana Aurora Constantinescu and Camelia Cristina Dragomir
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Carmina Elena Constantinescu: Lucian Blaga University of Sibiu
Liliana Aurora Constantinescu: Dimitrie Cantemir University
Camelia Cristina Dragomir: University Spiru Haret, Transilvania University of Brasov

Revista Economica, 2022, vol. 74, issue 4, 7-17

Abstract: An integrated banking risk management system presupposes the existence and functionality of policies, procedures and tools designed to identify, assess and eliminate/assume the risk to which the banking institution is exposed. There is a set of specific operations and procedures that generate banking risk. In addition, banking companies have to deal with risks that are not specific to them. With the national and international expansion of electronic credit system, financial markets have become much more fragile, the degree of uncertainty has increased, adding to all this the multiplication of risks specific to the financial-banking system due to the pandemic crisis. Therefore, the most common cause of losses and insolvency of credit institutions is due to the difficulty of dealing with events that may occur but have not been foreseen, as is the case with the COVID-19 pandemic. In this paper, we conducted a research targeting banking companies in the current crisis circumstances, analysing the issue of risk management in credit institutions. This approach is the basic pillar of this paper, which, in addition to the traditional aspects of banking management, also considers how the challenges and critical issues during crises become a test of competence for managers in order to overcome less predictable situations. The scientific approach undertaken focuses on the liquidity risk in credit institutions derived from studying the activity of the Cooperative Bank UNIREA Brașov. This paper concludes that, in the context of the global financial crisis and the pandemic due to the SARS-CoV-2 coronavirus, there have been major changes in the operating environment of the credit institutions and indicates a reassessment of the techniques and methods applied in banking management.

Keywords: banking system; liquidity risk management; sustainability; COVID-19 pandemic (search for similar items in EconPapers)
JEL-codes: F65 G21 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:blg:reveco:v:74:y:2022:i:4:p:7-17

DOI: 10.56043/reveco-2022-0032

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