IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/18132.html
   My bibliography  Save this paper

Capital adequacy and risk management - premises for strengthening financial system stability

Author

Listed:
  • Bunea-Bontaş, Cristina Aurora
  • Lăzărică, Marinela
  • Petre, Mihaela Cosmina

Abstract

In the last decades, we have witnessed the progressive integration of European financial system, as a result of the cumulative effect of markets' liberalization, innovation and globalisation, and of harmonization of the regulations and implementation of financial reforms by the EU Member States. In this context, increased risk of financial instability necessarily requires the development of standards and codes of best practices in order to improve financial system integrity and stability, and to insure the health of the global banking and financial markets. From this perspective, the Basel II Accord represents a true revolution, aiming the improvement of the consistency of capital regulations internationally and better operational risk management practices. As a member of the EU, Romania is currently through the stages of implementation of Basel II, starting 1st of January 2008. As a central bank, NBR main objectives are: to adapt national legislation; to coordinate the efforts of credit institutions to develop new strategies regarding solvency, capital adequacy and measurement system for each risk category; to impose the disclosure requirements for financial reports and to adapt the IT system.

Suggested Citation

  • Bunea-Bontaş, Cristina Aurora & Lăzărică, Marinela & Petre, Mihaela Cosmina, 2009. "Capital adequacy and risk management - premises for strengthening financial system stability," MPRA Paper 18132, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:18132
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/18132/1/MPRA_paper_18132.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Teodora Barbu & Georgeta Vintila, 2007. "The Consolidation on Banking Supervision in the Context of a Pan European Banking System," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 3(3(508)), pages 53-60, March.
    2. Miru, Oana Maria & Hetes-Gavra, Roxana & Nicolescu, Ana Cristina, 2008. "Applying Basel II Requirements in Romania," MPRA Paper 12613, University Library of Munich, Germany.
    3. Bogdan Firtescu, 2007. "Actual stage of development for basel ii and effects on romanian financial system soundness," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 54, pages 83-88, November.
    4. Andreas Jobst, 2007. "Consistent Quantitative Operational Risk Measurement and Regulation: Challenges of Model Specification, Data Collection and Loss Reporting," IMF Working Papers 2007/254, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. M. Bee & J. Hambuckers & L. Trapin, 2019. "Estimating Value-at-Risk for the g-and-h distribution: an indirect inference approach," Quantitative Finance, Taylor & Francis Journals, vol. 19(8), pages 1255-1266, August.
    2. Eugenia Matiş & Carmen Bonaci, 2011. "Reactions Versus Perceptions Within the Romanian Banking Sector in Times of Crisis and Reorganization," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(1), pages 38-64, September.
    3. Stacia Howard, 2009. "Stress testing with incomplete data: a practical guide," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Proceedings of the IFC Conference on "Measuring financial innovation and its impact", Basel, 26-27 August 2008, volume 31, pages 344-355, Bank for International Settlements.
    4. Balogh Peter & BOLOCAN DRAGOS-MIHAIL, 2010. "The Management Of Credit Risk According To Internal Ratings- Based Approach," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 665-671, December.

    More about this item

    Keywords

    Basel II Accord; capital adequacy; financial system stability; minimum capital requirements; risk management; risk-weighted assets;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:18132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.