FACTORII DETERMINANȚI AI PROFITABILITĂȚII SISTEMULUI BANCAR ROMÂNESC

Irina Raluca BUSUIOC Witowschi and Florin-Alexandru Luca
Additional contact information
Irina Raluca BUSUIOC Witowschi: The Doctoral School of Economics and Business Administration, "Al.I. Cuza" University, Iasi, Romania

Management Intercultural, 2014, issue 30, 21-29

Abstract: Romanian banking system recorded a negative rate of return in recent years. Therefore, this study focuses on identifying the main factors which contributed to decline of profitability in Romanian banks in the last years so that possible weaknesses and vulnerabilities to be corrected and removed. For this purpose we first did a review of the literature on bank performance studies and classification of profitability determinants followed by an empirical study. The empirical study was applied on 16 romanian banks for the period 2006 – 2012 and take into account bank-specific factors, industry-specific factor and macroeconomic factors. The estimation results suggest that profitability of Romanian banks, measured by return on average assets, is strongly influenced by the capital adequacy, the ratio of non-performing loans, deposit and cost-to-income ratio. Regarding industry-specific factor and macroeconomic factors the results are as we expected but without a statistically significant relationship.

Keywords: Profitabilitate bancară; Factori determinanți; Sistemul bancar românesc; Rentabilitatea activelor (search for similar items in EconPapers)
JEL-codes: C33 G21 G32 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://seaopenresearch.eu/Journals/articles/MI_30_2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cmj:interc:y:2014:i:30:p:21-29

Access Statistics for this article

Management Intercultural is currently edited by Romanian Foundation for Business Intelligence

More articles in Management Intercultural from Romanian Foundation for Business Intelligence, Editorial Department
Bibliographic data for series maintained by Serghie Dan ().