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Risk Analysis of the Romanian Banking System – an Aggregated Balance Sheet Approach

Author

Listed:
  • Eugen MITRICA

    (The Bucharest Academy of Economic Studies, Romania)

  • Liliana MOGA

    (Dunarea de Jos University of Galati, Romania)

  • Andrei STANCULESCU

    (The Bucharest Academy of Economic Studies, Romania)

Abstract

The paper presents a risk analysis for the current Romanian banking system. The analysis is conducted from the point of view of prudential rules and also from the point of view of Romanian banking system’s exposure to foreign funds, considering the consequences of these features, concerning the soundness and reliability of the banking system. The analysis found a manageable risk level, apparently, although during 2009 and 2010 the expansion of risk indicators was accelerated, but finally, in the late 2010, there are some signs of stabilization. The exposure of Romanian banking system to foreign funds was another important risk source. The exposure to foreign funds had an important decrease during 2009, but in 2010 it seems to stabilize.

Suggested Citation

  • Eugen MITRICA & Liliana MOGA & Andrei STANCULESCU, 2010. "Risk Analysis of the Romanian Banking System – an Aggregated Balance Sheet Approach," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 177-184.
    • Handle: RePEc:ddj:fseeai:y:2010:i:2:p:177-184
    as

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    File URL: http://www.ann.ugal.ro/eco/Doc2010_2/Mitrica_Moga_Stanculescu.pdf
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    References listed on IDEAS

    as
    1. Jose A. Lopez, 1999. "Using CAMELS ratings to monitor bank conditions," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue jun.
    2. Ron J. Feldman & Jason Schmidt, 1999. "What are CAMELS and who should know?," Fedgazette, Federal Reserve Bank of Minneapolis, vol. 11(Jan), pages 1-13.
    3. Mathias Dewatripont & Jean-Charles Rochet & Jean Tirole, 2010. "Lessons from the Crisis," Introductory Chapters, in: Balancing the Banks: Global Lessons from the Financial Crisis, Princeton University Press.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Rodica-Oana IONITA, 2014. "A new approach of the relationship between banking crisis, financial dependence and growth in Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(Special), pages 221-229, June.
    2. repec:agr:journl:v:6(595)(supplement):y:2014:i:6(595)(supplement):p:221-229 is not listed on IDEAS
    3. repec:jes:wpaper:y:2012:v:4:p:707-725 is not listed on IDEAS

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    More about this item

    Keywords

    prudential rules; exposure; Basel accords; capital adequacy; Romanian banking system;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other

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