MODERNIZATION AND RESTRUCTURING IN THE ROMANIAN BANKING SYSTEM UNDER THE IMPACT OF GLOBALIZATION

Loredana Ciurlau and Maria-Mirabela Florea Ianc
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Loredana Ciurlau: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU-JIU, FACULTY OF ECONOMIC SCIENCES
Maria-Mirabela Florea Ianc: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU-JIU, FACULTY OF ECONOMIC SCIENCES

Annals - Economy Series, 2020, vol. 3, 137-142

Abstract: The scope of banking activities has widened considerably. New technologies and the increasing complexity and sophistication of techniques and products have contributed to redefining the content of banking activities. They are reoriented from the administrative dimension to the technical and commercial dominance, in order to better respond to the needs of the international customers. Banks are, without a doubt, some of the economic actors most affected by financial globalization. To cope with changes in the economic environment, mainly financial liberalization and new technologies, banks have implemented a number of new strategies and policies. At the same time, in a global world, they are facing increasing risks. If by the 1970's banks were operating in a relatively stable and secure environment, the collapse of the international monetary system, which led to exchange rate instability and financial liberalization inevitably accompanied by increased financial market instability, exposed banks to new risks. Banks have to deal with risks, such as operational risks, related to organizational dysfunctions and market risks associated with changes in asset prices. Moreover, banks have relied on major innovations (securitization of receivables and derivatives) that have profoundly transformed how to approach risks. The purpose of this article is to analyze the manifestations of economic globalization, in terms of pace and intensity needed to outline the framework for analyzing the impact of globalization in the banking sector, as well as the main aspects of digitalization, the aspects of this phenomenon in the Romanian banking system, as well as the analysis and interpretation of some relevant indicators for this process.

Keywords: globalization; digitalization; banking system; performance; risk (search for similar items in EconPapers)
Date: 2020
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