Romanian banking system evolution and Basel II requirements
Abstract
Before 1989 Romanian banking system was structured in the specific way of a centralized economy. Restructuring the banking system took its first step at the end of 1990 when the newly established commercial bank Banca Comerciala Romana (BCR) took over retail operations performed previously by the National Bank of Romania (NBR). Simultaneously some privately-owned banking companies were established and foreign banks' branches were integrated into the domestic banking activity. The unfriendly economic environment, the poor quality of bank managers and shareholders and cumbersome legal procedures led to an increase in tensions, the poor quality of credit portfolio representing the major difficulty of the banking sector. In the past years, NBR tried to control more the banking activity by implementing international settlements. More over, since Romania will be one of the European Union countries, it is absolutely necessary the harmonization of entire economic and financial system to EU regulations. The paper try to present the position of Romanian banking system in the framework of all these information.Download Info
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18137.Length:
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:pra:mprapa:18137
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Keywords: Romanian banking system; banking systems in transition; bank regulation; Basel II; credit portfolio; bank concentration;Other versions of this item:
- Mihaela Nicolau, 2006. "Romanian Banking System Evolution and Basel II Requirements," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 95-102.
- P43 - Economic Systems - - Other Economic Systems - - - Finance; Public Finance
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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