ANALYSIS OF THE MARKERS WHICH COULD HAVE SIGNIFICANT INFLUENCE OVER THE POTENTIAL EXPOSURE OF THE BANK

Marin Tole () and Nicoleta Cristina Matei ()
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Marin Tole: Romanian-American University, Bucharest, Romania
Nicoleta Cristina Matei: Romanian-American University, Bucharest, Romania

The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, 2009, vol. 9, issue Special, 221-229

Abstract: The paper focuses in particular on the analysis of basic whose development can cause potential exposure of the bank. Also, it highlights the need to improve the process of risk management in the Romanian banking system. We have analyzed the evolution of income, expenses and profit whose fluctuating trend would lead to major risks if the management of capital flows hadn’t been prudent and carefully made. Also, the examined rates have fluctuating values, being related to the development of assets and liabilities during the period 2005 to 2007. Measures taken for prudent management aim at increasing both the debt, but also moneys and liabilities, so the bank could avoid major risks in addition to other factors, and potential exposure should be as low. The perusal of revenue trends, expenses, taxes, liabilities, claims, deposits, assets, etc. proves that risk management requires solid knowledge in the management of capital flows in order for the bank exposure to avoid becoming potential. The analysis highlights the vulnerability, but also the strengths of the banking system during certain periods of activity development. Measures to be taken by the bank manager for the bank's strategy to be performing, should comply with the principle related to the decrease of likelihood of risk occurrence and its potential exposure.

Keywords: Banking risk payment system; credit system; potential exposure; intermediate financial asset; profit (search for similar items in EconPapers)
Date: 2009
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