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An approach to measuring credit risk in a banking institution from Romania

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Listed:
  • Nora CHIRIȚĂ

    (Bucharest University of Economic Studies, Romania)

  • Ionuț NICA

    (Bucharest University of Economic Studies, Romania)

Abstract

Studying the behavior of banking systems both at the macroeconomic level and with the external environment, as well as at the level of financial institutions associated with their dynamic character, in the current context is in the attention of all specialists. Risk quantification is an important aspect in making strategic decisions regarding maintaining financial stability and maintaining a high level of performance of any banking institution. The complexity of current financial systems around the world makes it difficult to create indicators that accurately assess the systemic risk of any institution. This paper has shown that an incorrect credit risk assessment can lead to a decrease in the performance of banking units and can generate a systemic shock that can affect both financial networks and the national or global economy.

Suggested Citation

  • Nora CHIRIȚĂ & Ionuț NICA, 2020. "An approach to measuring credit risk in a banking institution from Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(623), S), pages 65-78, Summer.
    • Handle: RePEc:agr:journl:v:2(623):y:2020:i:2(623):p:65-78
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    References listed on IDEAS

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    11. Ionuț NICA & Nora CHIRIȚĂ, 2020. "Conceptual dimensions regarding the financial contagion and the correlation with the stock market in Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(622), S), pages 75-86, Spring.
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    Cited by:

    1. Ionuț NICA, 2020. "Simulation of financial contagion effect using the NetLogo software at the level of the banking network," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(624), A), pages 55-74, Autumn.

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