The Evaluation of the Credit Institutions Performances
Author:
Assistant Costin Daniel AVRAM, Ph. D. Student, Professor Veronel AVRAM, Ph. D.
JEL:
DOI:
Keywords:
performance, efficiency, efficacy, rating, indicator
Abstract:
The financial analysis, the analysis of efficiency, efficacy and degree of economy can offer us a correct image of the bank’s performances, but we must admit that, no matter how well documented would be this analysis, it is made post-factum and it is generally difficult to extrapolate the results for the future periods, meaning it is really hard to determine a relation between the analysis quality and the predictability of future performances. The predictability may be guaranteed only in the conditions of a market with an overall normal evolution, without significant fluctuation from one period to another. In conditions of generalized financial crisis, the performance indicators can degrade very fast indeed.\r\nThis study has selected a series of relevant indicators to characterize the performance of a banking entity, useful for an important range of annual financial statement information`s beneficiaries. \r\nIndicators of the banking efficiency, grouped in four large categories, as well as indicators of the efficacy of crediting policies or bank deposit encouragement policies are presented. These indicators, used together, can offer a substantial image of the bank`s performances in general, but also of each subunity in its structure.\r\n