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Factorii Determinanți Ai Profitabilității Sistemului Bancar Românesc

Author

Listed:
  • Irina Raluca BUSUIOC WITOWSCHI

    (The Doctoral School of Economics and Business Administration, "Al.I. Cuza" University, Iasi, Romania)

  • Florin-Alexandru LUCA

    („Gheorghe Asachi” Technical University of Iasi, Romania)

Abstract

Romanian banking system recorded a negative rate of return in recent years. Therefore, this study focuses on identifying the main factors which contributed to decline of profitability in Romanian banks in the last years so that possible weaknesses and vulnerabilities to be corrected and removed. For this purpose we first did a review of the literature on bank performance studies and classification of profitability determinants followed by an empirical study. The empirical study was applied on 16 romanian banks for the period 2006 – 2012 and take into account bank-specific factors, industry-specific factor and macroeconomic factors. The estimation results suggest that profitability of Romanian banks, measured by return on average assets, is strongly influenced by the capital adequacy, the ratio of non-performing loans, deposit and cost-to-income ratio. Regarding industry-specific factor and macroeconomic factors the results are as we expected but without a statistically significant relationship.

Suggested Citation

  • Irina Raluca BUSUIOC WITOWSCHI & Florin-Alexandru LUCA, 2014. "Factorii Determinanți Ai Profitabilității Sistemului Bancar Românesc," Management Intercultural, Romanian Foundation for Business Intelligence, Editorial Department, issue 30, pages 21-29, April.
    • Handle: RePEc:cmj:interc:y:2014:i:30:p:21-29
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    More about this item

    Keywords

    Profitabilitate bancară; Factori determinanți; Sistemul bancar românesc; Rentabilitatea activelor;
    All these keywords.

    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
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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