Banking Systems in Romania and Iceland: Two Different Worlds but Similar Development

Journal Title: Journal of Economic Development, Environment and People - Year 2017, Vol 6, Issue 2

Abstract

The novelty of this article is the comparative analysis of the Romanian and Icelandic banking systems. The study results reveal that despite the fact that Romania and Iceland are two different worlds, there are several similarities between the banking systems of these countries. They include a late development of banking systems, foreigners contributing a great deal to the development of the banking systems in the early stage of evolution. After the Second World War until the 1990s specialized banks operated in both countries. The banking systems of both countries prior to the 1990s were dominated by politics. Liberalization of banking and capital occurred both in Romania and Iceland after 1990; the bank privatization process took place during a similar period (1999-2006, Romania; 1998-2002, Iceland). Before privatization, banks in both countries lacked experience in a new banking “arena”. The global financial crisis greatly affected the two banking systems. Despite similarities, the evolution of the two banking systems was also marked by differences, notably the ownership origin of banks after privatization (foreign dominance in Romania; domestic owners in Iceland) and different business models developed by banks in the pre-crisis period.

Authors and Affiliations

Claudia Gabriela Baicu, Mar Wolfgang Mixa

Keywords

Related Articles

European Trade – Where is Going? Retail Entertainment

As competition grows, brand manager imagination needs to work, and sales growth solutions need to focus on customer focus attention. It is a difficult task if all brands offer discounts in the malls they are in, and the...

FOREIGN DIRECT (FDI) INVESTMENTS AS A COMPARISON OF MACROECONOMICS IN ASEAN 5, CHINA AND JAPAN DURING PERIOD 1996-2015

The purpose of this research is to analyze the Determination of Foreign Direct Investment (FDI) As a Comparison of Macroeconomic Factors in Asean 5, China and Japan. Besides, this research also analyses the influence of...

New Trends in Economic Globalization

Aristide Cociuban The long disputed and analyzed, globalization has now become an objective phenomenon unprecedented in world history, as magnitude and evolution. Criticized by some, revered by others, it seems that f...

The Effects of Right Offering Announcements on Returns of Shares of Deposit Banks Traded in İstanbul Stock-Exchange

In this study, the impacts of right offerings announcements on the returns of shares are analysed. Right offerings means to have the rigth of receiving new shares in proportion to shares on hand when the corporation issu...

EXPANSION FOR WHO, MARKETS OR THE POOR?

Selcuk KENDIRLI, Sedat KUSGOZOGLU, M. Sakir BASARAN ABSTRACT In this study we examine the impacts of expansionary monetary policies executed by the Federal Reserve on poverty in the United States of America. It has bee...

Download PDF file
  • EP ID EP246061
  • DOI 10.26458/jedep.v6i2.534
  • Views 187
  • Downloads 0

How To Cite

Claudia Gabriela Baicu, Mar Wolfgang Mixa (2017). Banking Systems in Romania and Iceland: Two Different Worlds but Similar Development. Journal of Economic Development, Environment and People, 6(2), 24-44. https://europub.co.uk/articles/-A-246061