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An Econometric Approach Of The Banking Risks - Case Of Central And Est European Countries

Author

Listed:
  • GABAN Lucian

    (Decembrie University, Alba-Iulia)

  • RUS Ionut - Marius

    (Babes-Bolyai University, Cluj-Napoca)

  • FETITA Alin

    (Babes-Bolyai University, Cluj-Napoca)

Abstract

In this paper we analyze the most significant aspects of performance banking on sample banks in Central and East European countries. We started with the aspects of the banking crisis began in 2007 and whose consequences are still felt today both in the EU and USA. Based on the ratios method we tried to capture the extent to which the financial crisis has had a negative impact on the sample banks from Central and East European countries. We also built two regression risks models between overall risk and ROE on the one hand, and between overdue and doubtful loans in total assets ratio and ROA on the other hand. In both cases, liquidity and solvency had an indirect influence over the risks.

Suggested Citation

  • GABAN Lucian & RUS Ionut - Marius & FETITA Alin, 2017. "An Econometric Approach Of The Banking Risks - Case Of Central And Est European Countries," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 69(2), pages 73-86, August.
    • Handle: RePEc:blg:reveco:v:69:y:2017:i:2:p:73-86
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    References listed on IDEAS

    as
    1. Ratnovski, Lev, 2013. "Liquidity and transparency in bank risk management," Journal of Financial Intermediation, Elsevier, vol. 22(3), pages 422-439.
    2. DeAngelo, Harry & Stulz, René M., 2015. "Liquid-claim production, risk management, and bank capital structure: Why high leverage is optimal for banks," Journal of Financial Economics, Elsevier, vol. 116(2), pages 219-236.
    3. Alex Fayman & Ling T. He, 2011. "Prepayment risk and bank performance," Journal of Risk Finance, Emerald Group Publishing, vol. 12(1), pages 26-40, January.
    4. Imbierowicz, Björn & Rauch, Christian, 2014. "The relationship between liquidity risk and credit risk in banks," Journal of Banking & Finance, Elsevier, vol. 40(C), pages 242-256.
    5. Dimitris Gavalas & Theodore Syriopoulos, 2014. "Bank Credit Risk Management and Rating Migration Analysis on the Business Cycle," IJFS, MDPI, vol. 2(1), pages 1-22, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial crisis; banking risks; ROA; ROE;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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