Aspects Regarding Banking Risks In A Global Economy

Bank risk being generated by a series of operations and procedures must be regarded as a conglomerate or a complex of risks, in most cases independent, in that they may have common causes. All operations and procedures that are carried out permanently generate risk exposure. In practice, according to the recommendations of the National Bank of Romania, commercial banks in Romania identify the following groups of risks: credit risk, market risk (including currency risk), operational risk (including legal risk), risk of asset and liability management (including liquidity risk and interest rate risk), external events risk and strategic risk. Due to the importance it attaches to the management of banking risks, the National Bank of Romania has implemented a series of normative acts aimed at ensuring a prudent abhorrence of the Romanian banks for the risks inherent in their activity. In practice, commercial banks strictly comply with all the requirements submitted by the NBR, namely: setting up mandatory reserve funds for attracted deposits, forming reserves for reductions for credit losses, maintaining the structure of the loan portfolio in accordance with the credit policy, maintaining capital total norms and the adequacy of the risk-weighted capital within the limits set by the NBR, the compliance with the limits regarding the open currency deposit, the liquidity of the bank, the granting of loans and other requirements.