Factorii Determinanți Ai Profitabilității Sistemului Bancar Românesc
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.
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