IDEAS home Printed from https://ideas.repec.org/a/aic/journl/y2010vsep149-160.html
   My bibliography  Save this article

The Implications Of The Global Crisis On The Financial Performances Of The Romanian Banking System

Author

Listed:
  • Ioan Nistor

    () (Babes Bolyai University, Faculty of Economics and Business Cluj-Napoca, Romania)

  • Mirela Pintea

    () (Babes-Bolyai University, Faculty of Economics and Business Administration, Cluj-Napoca, Romania)

  • Maria Ulici

    () (Babes-Bolyai University, Faculty of Economics and Business Administration, Cluj-Napoca, Romania)

Abstract

The increase of financial crisis in 2008 helped to bring the recession in developed countries and the reduction of acceleration in the economies of emerging countries. Moreover, the degree of vulner-ability in emerging countries has increased through their dependence of external financing. Mutual potentiation of negative developments in financial markets and the real economy determinates a vola-tile environment, stressing the difficulties of forecasting the magnitude of the impact on short and medium term of the global crisis on macroeconomic developments in our country. Romanian banking sector is very affected, there are made changes of interest rate of monetary policy, of interest rates charged on loans and deposits, while the banks’ bad debts are increasing. The year 2009 brought with it the decrease in the financial performances of the credit institu-tions especially due to the constitution of provisions for the outstanding loans. The provisions exploded at the beginning of the year, conditions in which banks have recorded losses in January and February and, despite a slight recovery in March, first quarter results ware negative. On the other side the operational profits are still good so it depends on how each bank will be able to deal with the loans with problems in order to obtain a decrease in their provisions. The banking system from Romania should find rapid solutions in order to improve their financial results through to improving the banking indebtedness for the entities depending on credits and in this way it contributes to accelerate the process of businesses development through credits.

Suggested Citation

  • Ioan Nistor & Mirela Pintea & Maria Ulici, 2010. "The Implications Of The Global Crisis On The Financial Performances Of The Romanian Banking System," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 2010, pages 149-160, july.
  • Handle: RePEc:aic:journl:y:2010:v:se:p:149-160
    as

    Download full text from publisher

    File URL: http://anale.feaa.uaic.ro/anale/resurse/fin4nistor.pdf
    Download Restriction: no

    File URL: http://anale.feaa.uaic.ro/anale/ro/Arhiva%202010-Nistor_Pintea_Ulici/318
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adela Socol, 2011. "Loan Losses Provisioning Processes In Romanian Banks During January 2007 €“ February 2011," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(13), pages 1-11.
    2. Adela Socol & Adina Elena Danuletiu, 2013. "Analysis Of The Romanian Banks‘ Performance Through Roa, Roe And Non-Performing Loans Models," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-24.

    More about this item

    Keywords

    banks; provisions; loans; profitability; solvency; liquidity.;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aic:journl:y:2010:v:se:p:149-160. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sireteanu Napoleon-Alexandru). General contact details of provider: http://edirc.repec.org/data/feaicro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.