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Reforms Of Romanian Banks, After 10 Years From The Financial Crisis

Author

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  • Marius GUST

    (“Constantin Brancoveanu” University of Pitesti, Romania)

Abstract

Ten years after the financial crisis, which began in 2008, although the Romanian banking system lost about 10% of its size (the share of assets in GDP), it continues to be the main component of the Romanian financial system, with a share of three quarters. In regards to bank resources, we note a decrease in Romanian banks' dependence on the external environment, better financial autonomy of banks towards non-financial creditors, but also a shift of banking risk to the population and enterprises, which have increased their contribution to financing of banks' operations. The developments in Romanian banks' assets field indicate a decrease in banks' interest in Romania’s real economy, probably due to the increase in its risk. Also, Romanian banks preferred to obtain lower but risk-free incomes offered by the state to investments made for public debt financing and focused on placements outside Romania. Last but not least, a decrease in the liquidity of our banks due to the decrease in the claims on the NBR.

Suggested Citation

  • Marius GUST, 2019. "Reforms Of Romanian Banks, After 10 Years From The Financial Crisis," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 4(4), pages 14-23.
    • Handle: RePEc:brc:brccej:v:4:y:2019:i:4:p:14-23
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    References listed on IDEAS

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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