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

CUSTOMER LOYALTY – SPECIFIC FEATURES OF RETAIL ACTIVITY IN BUCHAREST

Altough the consumer behavior in the field of consumer goods industry represents a relatively common area of interest in nowadays scientific literature, their loyalty is part of a research area insufficiently studied at...

IMPACT ANALYSIS OF EQUITY VARIATION ON THE FINANCIAL POSITION OF THE ECONOMIC ENTITY

The analysis of equity and their variation during a financial year is an old custom in Anglo-Saxon accounting. In its simple form, such an analysis can be found in the interpretation of the structure „accumulated and r...

ANALYSIS OF THE BANKING SYSTEM’S CONCENTRATION DEGREE IN EU COUNTRIES ANALYSIS OF THE BANKING SYSTEM’S CONCENTRATION DEGREE IN EU COUNTRIES  

 This paper focuses on four main fields of interest. The first part of the study is dedicated to an analysis of the specialized literature with a view to highlighting our research area. The second part concentrates...

INDICATORS OF THE GLOBAL REPORTING INITIATIVE REGARDING SUSTAINABLE DEVELOPMENT

Ample debates took place and numerous methods were elaborated in order to assess the environment performance of an entity. The simplest and fastest method consists in applying environment indicators which can present the...

AN ECONOMIC INTERPRETATION OF NEOCLASSICAL MONOPOLY THEORY IN THE LIGHT OF AUSTRIAN SCHOOL

The paper summarizes the contributions of the neoclassical and Austrian school of thought in the field of monopoly theory arguing that the first uses non-operational concepts in describing the entrepreneur’s actions on t...

Download PDF file
  • EP ID EP139629
  • DOI -
  • Views 134
  • Downloads 0

How To Cite

Nicolae Dardac, Iustina Boitan (2009). THE IMPACT OF HOUSEHOLD SECTOR RISKS TO THE SOUNDNESS OF THE ROMANIAN BANKING SYSTEM. Annales Universitatis Apulensis series Oeconomica, 11(1), 575-582. https://europub.co.uk/articles/-A-139629