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Evolution Of Non-Performing Loans In The European Union And Romania

Author

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  • Cãtãlin Emilian HUIDUMAC PETRESCU
  • Adelina Elena STAN

Abstract

The financial crisis caused the debtors’ inability to repay their loans, which led to an increase in the level of non-performing loans (NPLs). The high stock of non-performing loans prejudice to the performance of commercial banks by generating a low level of income, reducing their profitability and decreasing the capital levels. Amid this development, during the post-crisis period, one of the main objectives of the banking sector, both at European Union and national level is to eliminate the potential risks by decreasing the rate of NPLs. This paper seeks to perform an analysis of the evolution of NPLs, and also highlighting the main tools used by commercial banks and central authorities to diminish the level and the impact of such credits.

Suggested Citation

  • Cãtãlin Emilian HUIDUMAC PETRESCU & Adelina Elena STAN, 2019. "Evolution Of Non-Performing Loans In The European Union And Romania," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 238-247, November.
    • Handle: RePEc:rom:mancon:v:13:y:2019:i:1:p:238-247
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    References listed on IDEAS

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    1. Constantin ANGHELACHE & Gabriela Victoria ANGHELACHE & Madalina – Gabriela Anghel & Georgiana NITA, 2016. "General Notions on Banking Risks," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 64(5), pages 7-10, May.
    2. Gheorghe MOROsAN & Iulian CONDRATOV & Aurica Trandafira SOFIAN, 2017. "The Credit Influence On The Economic Growth In Romania," The USV Annals of Economics and Public Administration, Stefan cel Mare University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 17(1(25)), pages 118-128, June.
    3. Shekhar Aiyar & Wolfgang Bergthaler & Jose M Garrido & Anna Ilyina & Andreas Jobst & Kenneth H Kang & Dmitriy Kovtun & Yan Liu & Dermot Monaghan & Marina Moretti, 2015. "A Strategy for Resolving Europe's Problem Loans," IMF Staff Discussion Notes 15/19, International Monetary Fund.
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