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Romanian commercial banks and credit risk in financing SME

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Author Info
Covaci, Brindusa

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Abstract

Romania’s integration in the European Union brought about some major changes in our banking system. One of the direct consequences is the fierce competition between banks for supremacy on the market. According to this, the Romanian banks saw in the SMEs sector a true potential for reaching their goal and they proceeded to conquer it by conceiving unique products, specially designed to reach the financial needs of this segment. Moreover, banks often come up with new attractive offers and cost reductions for the SMEs (Small and Mediu Sized Enterprises) sector. In this context, some answers need to be done: the effective risk banks accept to take by providing the offers, specific risks in financing this sector, the problem of the balance between risk and profit return (or market share increase).

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File URL: http://mpra.ub.uni-muenchen.de/14790/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14790.

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Date of creation: 23 Nov 2008
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Handle: RePEc:pra:mprapa:14790

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Related research
Keywords: credit risk; risk management; financing SME; bank policies;

Find related papers by JEL classification:
D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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This page was last updated on 2009-11-25.


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