The Impact Of Household Sector Risks To The Soundness Of The Romanian Banking System
AbstractThe paper focuses, primarily, on assessing if risks associated to household sector havea significant impact on Romanian banking system’s soundness and stability, by establishing whichhousehold specific variables are the most important and have to be monitored. We have consideredseveral representative prudential and performance banking system’s indicators and we haveperformed a regression for each one, against a set of 12 explanatory variables, concerninghouseholds’ balance sheet, their net earnings, the dynamics of unemployment rate, the degree ofindebtedness, banking system’s exposure to currency risk associated to households. Our empiricalfindings suggest that banking system profitability, expressed as return on equity, and liquidityindicator are the most influenced by households’ financial behavior and the evolutions on the labormarket.
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Bibliographic InfoArticle provided by Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia in its journal Annales Universitatis Apulensis Series Oeconomica.
Volume (Year): 1 (2009)
Issue (Month): 11 ()
Contact details of provider:
banking system vulnerability; prudential indicators; householdsâ€™ financial position; logisticregression;
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
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- Shubhasis Dey & Ramdane Djoudad & Yaz Terajima, 2008. "A Tool for Assessing Financial Vulnerabilities in the Household Sector," Bank of Canada Review, Bank of Canada, vol. 2008(Summer), pages 47-56.
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