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Efficiency of Operational Activity of Commercial Banks in Romania

Author

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  • Nicolae BALTES

    (Lucian Blaga University of Sibiu, Romania)

  • Maria-Daciana RODEAN

    (Lucian Blaga University of Sibiu, Romania)

Abstract

In recent years, the financial performance of Romanian commercial banks has been considerably reduced, due to the decline in lending activity and the increase in operating expenses. The paper aims to estimate the impact of credit, liquidity and solvency risk on the efficiency of the operational activity of commercial banks listed on the Bucharest Stock Exchange. The results obtained by the application of the multiple linear regression showed that the level of the „cost to income†indicator, during 2010-2015, was significantly influenced by the capitalization level, the lending rate and the saving rate.

Suggested Citation

  • Nicolae BALTES & Maria-Daciana RODEAN, 2017. "Efficiency of Operational Activity of Commercial Banks in Romania," Expert Journal of Finance, Sprint Investify, vol. 5(1), pages 86-93.
    • Handle: RePEc:exp:finnce:v:5:y:2017:i:1:p:86-93
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    References listed on IDEAS

    as
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    5. Maria-Daciana RODEAN (COZMA) & Nicolae BALTEŞ, 2016. "Study regarding the influence of the endogenous and exogenous factors on credit institution’s return on assets," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(606), S), pages 247-254, Spring.
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    JEL classification:

    • 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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