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Financial Intermediation after the Financial Crisis

Author

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  • Imola Drigă

    (University of Petroşani, Romania)

Abstract

The purpose of this paper is to provide a perspective on financial intermediation in the Romanian banking system and bank profitability during and after the financial crisis. The global financial crisis that occurred in 2007 had a great impact and significant negative effects on the real economy, as well as on the banking system. Mainly because of external adverse macroeconomic developments, economic downturn caused by the crisis, weak or negative economic growth and poor economic environment, bank lending declined dramatically and the banking system registered extremely high levels of nonperforming loans due to a continuous deterioration in the quality of loan portfolios. As a result, bank profitability was severely affected and since 2010 the profitability of the Romanian banking system entered in a negative territory.

Suggested Citation

  • Imola Drigă, 2017. "Financial Intermediation after the Financial Crisis," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 17(2), pages 43-50.
    • Handle: RePEc:pet:annals:v:17:y:2017:i:2:p:43-50
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    File URL: https://www.upet.ro/annals/economics/pdf/2017/p2/Driga.pdf
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    References listed on IDEAS

    as
    1. Elod Takáts & Christian Upper, 2013. "Credit and growth after financial crises," BIS Working Papers 416, Bank for International Settlements.
    2. TOMULEASA, Ioana-Iuliana & COCRIŞ, Vasile, 2014. "Measuring The Financial Performance Of The European Systemically Important Banks," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 18(4), pages 31-51.
    3. Peterson K. Ozili, 2019. "Non-performing loans and financial development: new evidence," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 20(1), pages 59-81, January.
    4. Imola Drigă & Codruța Dura & Loredana Cristea, 2016. "The Impact of the Financial Crisis on Bank Profitability," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 16(2), pages 5-12.
    5. Bogdan-Gabriel MOINESCU, 2012. "Determinants Of Nonperforming Loans In Central And Eastern European Countries: Macroeconomic Indicators And Credit Discipline," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 10, pages 47-58, December.
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    Cited by:

    1. Imola Drigă, 2018. "Systemic Risk and Macroprudential Policy in the Banking Sector," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 18(2), pages 21-28.
    2. Mirela Monea, 2018. "Comparative Analysis of Performances in Banking Sector," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 18(2), pages 61-68.

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    More about this item

    Keywords

    international financial crisis; financial intermediation; nonperforming loans; bank profitability;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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