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Regional Behavior Of Banks Before And One Year After The Onset Of The Crisis

Author

Listed:
  • Andrada Busuioc

    (Bucharest Academy of Economic Studies)

  • Cristian Birău

    (Bucharest Academy of Economic Studies)

Abstract

The period of continuous economic growth that has characterized Romania in the 2000s, linked to the easing of monetary policy begun in 2005, determined the commercial banks to adopt extensive strategies. This paper aims to demonstrate that those strategies were based less on economic reasons, and more on the banks' optimistic calculations. Analyzing their territorial activity – from the extension of the branches to the volume of loans granted and deposits made by each county separately, before and one year after the onset of the crisis – low correlation is observed between the economic realities and banking strategies.

Suggested Citation

  • Andrada Busuioc & Cristian Birău, 2009. "Regional Behavior Of Banks Before And One Year After The Onset Of The Crisis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 12(12(541)(s), pages 696-702, December.
    • Handle: RePEc:agr:journl:v:12(541)(supplement):y:2009:i:12(541)(supplement):p:696-702
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