Evolution of the Main Banking Sector Risks in Romania in the Last Decade
Journal Title: Revista Romana de Statistica - Year 2015, Vol 63, Issue 1
Abstract
The evolution of financial sector stability risks is a major cause of concern for central banks in democratic countries, the macroprudential approach being a top priority nowadays, amid efforts to overcome the current global financial crisis. The systemic risk management approach has a major impact on economic growth. It refers to financial, economic and social cycles as well. The analysis that reveals this evolution is based on the correlations between risk indicators and economic indicators. It is worth mentioning that the banking sector is the largest part of the financial system in Romania, while the equity stock market is relatively small. In this context, the paper presents the correlations between the main banking sector risk indicators, namely the solvency indicator, leverage and total risks, and key and derived economic and financial indicators. In addition, this paper presents a stress test that predicts the impact of macroeconomic shocks on financial soundness indicators, such as the domestic credit and its main components – governmental and, respectively, non-governmental credit – each of them having a different impact on economic growth. The stress test is based on an econometric model, i.e. the historical scenario. Finally, conclusions are drawn, emphasizing the essential role of prudential regulation, which diminished before the financial crisis that emerged in the United States in 2007. As a result, toxic financial assets could no longer be kept off markets, leading to the destabilization of the financial system and of economy of democratic countries.
Authors and Affiliations
Dana Sisea, Emilia Stoica, Sandra Teodorescu
Keywords
Related Articles
- EP ID EP132652
- DOI -
- Views 164
- Downloads 0
Interactive R App for Carrying Out an Elicitation Process Applied to Prostate Cancer in Colombia
In this paper is presented an interactive R-application for carried out an elicitation process to the vector of parameters of the Multinomial distribution. The application is developed mainly under two R libraries, Shiny...
Some Operational Aspects Relating to Quality Management and Total Quality Management
The work pass in review a few basic concepts found in quality management focusing on operational aspects of quality assurance in production activity and continue with issues regarding total quality strategy, the vector o...
Numărul şi structura populaţiei ocupate din România - evoluţii şi previziuni la nivelul ţării şi al regiunilor de dezvoltare
Evoluţiile contradictorii ale indicatorilor forţei de muncă din România după 1990 , cu un trend greu de definit, sunt uneori dificil de explicat prin intermediul metodelor statistice clasice care relevă în unele cazuri c...
Diferenţele termice între arealele oraşelor Slatina şi Caracal
At the level of an urban area, man is under the conditions of basic clime elements: temperature,precipitations and wind. Due to impurities, numerical growth of population and increase of the consumption of combustibles t...
Romanian Economy Modelling in the presence of Financial Frictions
The sphere of economic modelling has continuously evolved, revealing new issues to be considered for a more grounded analysis of the features specific to a real economy. Based on the dynamic stochastic general equilibriu...