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Financial Risks Analysis For A Commercial Bank In The Romanian Banking System


  • Imola Driga

    (University of Petrosani Romania)


The main goal of every bank is managing the risks arising from bankingtransactions in order to have a profitable activity. Bank managers must identify and manageall risks associated with each business they enter into, since exposure to significant risksreduces the present value of expected future cash flow. The main financial risks associatedwith the activities of a bank arise as a result of the bank's operations in the financial sector.Financial risks a bank is confronted consist of credit risk, liquidity risk, market risks (interestrate risk and currency risk). Because an inefficient management of financial risks causes themajority of bankruptcies in the banking system, this category of risks has a significantposition in the managerial process of any bank. Our paper focuses on assessing the exposureof a commercial bank from the Romanian banking system to financial risks.

Suggested Citation

  • Imola Driga, 2012. "Financial Risks Analysis For A Commercial Bank In The Romanian Banking System," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(14), pages 1-14.
  • Handle: RePEc:alu:journl:v:1:y:2012:i:14:p:14

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    References listed on IDEAS

    1. Helmut Elsinger & Alfred Lehar & Martin Summer, 2006. "Risk Assessment for Banking Systems," Management Science, INFORMS, vol. 52(9), pages 1301-1314, September.
    2. Kosmas Njanike, 2009. "The Impact of Effective Credit Risk Management on Bank Survival," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(2), pages 173-184.
    3. Nicolae Baltes & Alina-Teodora Ciuhureanu, 2010. "Study On The Risk Management In Banking Institutions," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 5(3), pages 67-78, December.
    4. Peter Christoffersen & Sílvia Gonçalves, 2004. "Estimation Risk in Financial Risk Management," CIRANO Working Papers 2004s-15, CIRANO.
    5. Carol Alexander, 2005. "The Present and Future of Financial Risk Management," Journal of Financial Econometrics, Society for Financial Econometrics, vol. 3(1), pages 3-25.
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    More about this item


    financial risks; credit risk; liquidity risk; interest rate risk; currency risk;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill


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