THE IMPACT OF HOUSEHOLD SECTOR RISKS TO THE SOUNDNESS OF THE ROMANIAN BANKING SYSTEM
Journal Title: Annales Universitatis Apulensis series Oeconomica - Year 2009, Vol 11, Issue 1
Abstract
The paper focuses, primarily, on assessing if risks associated to household sector have a significant impact on Romanian banking system’s soundness and stability, by establishing which household specific variables are the most important and have to be monitored. We have considered several representative prudential and performance banking system’s indicators and we have performed a regression for each one, against a set of 12 explanatory variables, concerning households’ balance sheet, their net earnings, the dynamics of unemployment rate, the degree of indebtedness, banking system’s exposure to currency risk associated to households. Our empirical findings suggest that banking system profitability, expressed as return on equity, and liquidity indicator are the most influenced by households’ financial behavior and the evolutions on the labor market.
Authors and Affiliations
Nicolae Dardac, Iustina Boitan
Keywords
Related Articles
- EP ID EP139629
- DOI -
- Views 153
- Downloads 0
STUDY REGARDING THE INFLUENCE OF THE UNEMPLOYMENT RATE OVER NON-PERFORMING LOANS IN ROMANIA USING THE CORRELATION INDICATOR
In this paper it is studied the influence of unemployment rate on non-performing loans in Romania. The following issues are presented: the definition of nonperforming loans, the criteria used by Romania in the definiti...
HARMONIZATION OF GOODWILL REPORTING PRACTICE IN THE CONSOLIDATED FINANCIAL STATEMENTS OF ROMANIAN GROUPS
The purpose of this paper is to analyze the current state of consolidated reporting practice harmonization concerning the extant methods for evaluating and reporting goodwill in the consolidated financial statements of...
THE GLOBAL FINANCIAL CRISIS AS INCENTIVE FOR ENHANCING ASSURANCE FOR FINANCIAL REPORTING
The article aims to analyze world-wide financial crisis’ impact and implications as regards assurance for financial reporting, starting with and comparing reactions of international accounting and audit professional orga...
CASH ACCOUNTING STANDARDIZATION IN THE PUBLIC SECTOR
An important component of public institutions’ accounting is represented by cash accounting. At the same time, the normalization, harmonization and convergence of accounting are the chronological stages generated by glob...
ANALYZING ROMANIAN SPORTS ORGANIZATIONS MANAGEMENT USING ECONOMETRIC FRONTIER
Sport is an institution interesting to study, being similar, but also different from traditional business organizations. Significant segments of sport have copied practices and the values of the business world, and as...