Impact of Credit Restructuring on the Quality of Bank Asset Portfolio. A Cluster Analysis Approach

Nicolae Dardac (), Teodora Cristina Barbu () and Iustina Alina Boitan ()
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Nicolae Dardac: The Bucharest Academy of Economic Studies, Romania
Teodora Cristina Barbu: The Bucharest Academy of Economic Studies, Romania
Iustina Alina Boitan: The Bucharest Academy of Economic Studies, Romania

Acta Universitatis Danubius. OEconomica, 2011, issue 3(3), 162-173

Abstract: In this paper we proposed an analysis of the financial crisis impact on the procedures for management of loan portfolios in several banking systems. Despite ample liquidity injection programs implemented by major central banks and government actions, credit risk remains a key challenge of the current banking systems. On a medium term, the high percentage of bad loans has become a structural vulnerability. To maintain an acceptable quality of loan portfolios and not to damage the prudential and profitability indicators, credit institutions in EU member states have proceeded to apply various techniques for credit restructuring. The quantitative analysis carried out in the last part of the paper revealed a relatively moderate granularity of banking systems considered, in terms of capitalization, volume of bank reserves and net provisions, in response to the persistent trend of loan portfolio deterioration.

Keywords: financial crisis; credit portfolio; credit restructuring methods; cluster analysis (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:dug:actaec:y:2011:i:3:p:162-173

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