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Applying Basel II Requirements in Romania

Author

Listed:
  • Miru, Oana Maria
  • Hetes-Gavra, Roxana
  • Nicolescu, Ana Cristina

Abstract

The Basel II Agreement is a new stage in the development of prudential regulations. Compared to the initial agreement, Basel I, this one allows a more large and precise analysis of banking risks. The European approach of Basel II requirements aims to offer some common conditions for all the credit institutions. Secondly, in order to achieve the objectives of Basel II, an active implication of the supervisory authorities is needed, as well as a tighter cooperation between them in order to increase the financial integration at the European Union level. In what concerns Romania, that has recently joined the European Union, the implementation of Basel II requirements imply a new series of challenges both for credit institutions and for the Central Bank. These challenges, for the commercial banks, reside in adjusting the risk management techniques and the informational system, training the staff, obtaining the databases, etc. and for the Central Bank in both adapting the surveillance process and elaborating new regulations. This paper tries to analyze the main implications of implementing these requirements, both for the Romanian commercial banks and for the National Bank.

Suggested Citation

  • Miru, Oana Maria & Hetes-Gavra, Roxana & Nicolescu, Ana Cristina, 2008. "Applying Basel II Requirements in Romania," MPRA Paper 12613, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:12613
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    File URL: https://mpra.ub.uni-muenchen.de/12613/1/MPRA_paper_12613.pdf
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    References listed on IDEAS

    as
    1. David S. Bieri, 2004. "The Basel Process and Financial Stability," Macroeconomics 0412001, University Library of Munich, Germany.
    2. Frank Dierick & Fatima Pires & Martin Scheicher & Kai Gereon Spitzer, 2005. "The New Basel Capital Framework and its implementation in the European Union," Occasional Paper Series 42, European Central Bank.
    3. Dierick, Frank & Pires, Fatima & Scheicher, Martin & Spitzer, Kai Gereon, 2005. "The New Basel Capital Framework and its implementation in the European Union," Occasional Paper Series 42, European Central Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Eugenia Matiş & Carmen Bonaci, 2011. "Reactions Versus Perceptions Within the Romanian Banking Sector in Times of Crisis and Reorganization," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(1), pages 38-64, September.
    2. Bunea-Bontaş, Cristina Aurora & Lăzărică, Marinela & Petre, Mihaela Cosmina, 2009. "Capital adequacy and risk management - premises for strengthening financial system stability," MPRA Paper 18132, University Library of Munich, Germany.
    3. Balogh Peter & BOLOCAN DRAGOS-MIHAIL, 2010. "The Management Of Credit Risk According To Internal Ratings- Based Approach," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 665-671, December.

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    More about this item

    Keywords

    banking; prudential regulations; supervision; capital requirements;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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