THE FINANCIAL STABILITY OF THE ROMANIAN BANKING SYSTEM IN THE EUROPEAN CONTEXT

Nicolae BALTEÅž, and Maria-Daciana RODEAN (Cozma)
Additional contact information
Nicolae BALTEŞ,: “Lucian Blaga†University, Sibiu, Romania
Maria-Daciana RODEAN (Cozma): “Lucian Blaga†University, Sibiu, Romania

EcoForum, 2017, vol. 6, issue 1, 43

Abstract: Reforms to the European banking system aim to increase commercial banks’ ability to withstand various shocks and volatility of the current economic and social environment. Changes to European and international legislative framework aimed among other things, the level of capital adequacy and quality of loan portfolios, which are most affected by the turmoil arising in financial markets. Thus, it was considered appropriate to studying these two groups of prudential ratios, over a period of 9 financial years (2007-2015) at 8 banking systems in Europe: Austria, Czech Republic, France, Germany, Greece, Italy, Hungary and Romania. The results obtained showed that the Romanian banking system has an adequate level of capital, although the quality of loan portfolios has significantly decreased, especially in the last period of the research. National Bank of Romania’s involvement in the significant reduction of risk and sovereign debt crisis contributed to the increase of comparability of the Romanian banking market with the European market. Major problems have been reported in the Greek and Italian banking systems, largely affected by the sovereign debt crisis.

Keywords: total own funds rate; tier 1 capital rate; non-performing loans rate; the provisioning coverage of equity; capital adequacy level; quality of loan portfolios. (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ecoforumjournal.ro/index.php/eco/article/view/521/333 (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:scm:ecofrm:v:6:y:2017:i:1:p:43

Access Statistics for this article

EcoForum is currently edited by Association of Educational and Cultural Cooperation Suceava

More articles in EcoForum from "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department. Contact information at EDIRC.
Bibliographic data for series maintained by Iulian Condratov ().