IDEAS home Printed from https://ideas.repec.org/a/alu/journl/v2y2013i15p24.html
   My bibliography  Save this article

Analysis Of The Romanian Banks‘ Performance Through Roa, Roe And Non-Performing Loans Models

Author

Listed:
  • Adela Socol

    (‘1 Decembrie 1918‘ University of Alba Iulia Romania)

  • Adina Elena Danuletiu

    (‘1 Decembrie 1918‘ University of Alba Iulia Romania)

Abstract

General assumption of this study is that the banks performance represents their abilityto generate sustainable profitability and that banks‘ profitability is one important issue ofcontemporary banking field, grace to its role in emphasizing of the financial soundness of banks,abreast to others indicators regarding to the capital adequacy or assets quality. The paperexamines how is affected banking profitability (expressed through traditional measures ofperformance ROA - Return on Assets and ROE - Return on Equity) by the CRR Credit risk ratio inRomanian banking system during March 2008 - June 2013. We developed two regression models inorder to study the dependence between mentioned variables. We found that ROA and ROE varyeach of them depending on the CRR Credit risk ratio, which is expressed as the ratio of gross valueof exposure to loans and related interest under ‘doubtful‘ and ‘loss‘ to total classified loans andrelated interest pertaining to non-bank loans, off-balance sheet items excluded.

Suggested Citation

  • 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.
  • Handle: RePEc:alu:journl:v:2:y:2013:i:15:p:24
    as

    Download full text from publisher

    File URL: http://oeconomica.uab.ro/upload/lucrari/1520132/24.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Athanasoglou, Panayiotis P. & Brissimis, Sophocles N. & Delis, Matthaios D., 2008. "Bank-specific, industry-specific and macroeconomic determinants of bank profitability," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 121-136, April.
    2. Bolt, Wilko & de Haan, Leo & Hoeberichts, Marco & van Oordt, Maarten R.C. & Swank, Job, 2012. "Bank profitability during recessions," Journal of Banking & Finance, Elsevier, vol. 36(9), pages 2552-2564.
    3. Kanas, Angelos & Vasiliou, Dimitrios & Eriotis, Nikolaos, 2012. "Revisiting bank profitability: A semi-parametric approach," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 22(4), pages 990-1005.
    4. Dan LUPU & Andra NICHITEAN, 2011. "Corporate Governance And Bank Performance In Romanian Banking System," The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 11(1(13)), pages 219-225, June.
    5. Yong Tan & Christos Floros, 2012. "Bank profitability and GDP growth in China: a note," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 10(3), pages 267-273, January.
    6. 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.
    7. Iulia Iuga, 2016. "Analysis of Financial Intermediation in Romania," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 551-556, July.
    8. Jose L. Gallizo & Jordi Moreno & Ioana Iuliana Pop (Grigorescu), 2011. "Banking Efficiency And European Integration. Implications Of The Banking Reform In Romania," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 1-25.
    9. Andries, Alin Marius & Cocris, Vasile, 2010. "A Comparative Analysis of the Efficiency of Romanian Banks," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 54-75, December.
    10. Mihai NITOI, 2009. "Efficiency in the Romanian Banking System: An Application of Data Envelopment Analysis," Romanian Journal of Economics, Institute of National Economy, vol. 29(2(38)), pages 162-176, December.
    11. Oana Raluca Ivan, 2011. "Audit Fee Econometrical Models An Overview Of The Auditing Research Literature," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 1-20.
    12. Yong Tan & Christos Floros, 2012. "Bank profitability and inflation: the case of China," Journal of Economic Studies, Emerald Group Publishing, vol. 39(6), pages 675-696, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    ROA Return on Assets; ROE - Return on Equity; Credit risk ratio; Regression model;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    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:alu:journl:v:2:y:2013:i:15:p:24. 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: (Dan-Constantin Danuletiu). General contact details of provider: .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.