The Solvency of the Romanian Banking System at the Border between Necessity and Regulatory Requirement
Author:
Associate Professor Mariana NEDELCU (BUNEA), Ph. D. Student
JEL:
M48, G32, G38
DOI:
Keywords:
banking system, supervisory authorities, risk management, solvency, capital requirements
Abstract:
The Romanian banking landscape cross stages of continuous adaptation, changes of ownership (presence of investment funds was noticed in the last period), the outputs of the market, failed mergers, consolidations, and so on, all of which are designed to climb finally the effects of prolonged financial crisis.\r\nThe author proposes to evaluate the implementation and enforcement of the new regulations in the Romanian banking system. He will stop especially in the area of minimum capital requirements (solvency), given the very large of this new supervisory mechanism at European level, but will not be disregarded any other levels of the framework.\r\nIn his approach on the Romanian banking solvency analysis, the author noted that it should not be a concern only for the banking system but for all the actors of Romanian economy. The solvency in the broadest sense means the ability to pay on timethe obligations, which implies the existence of own funds, hence the idea to create sufficient reserves to generate no financial weaknesses. Who other may be able to provide these resources to meet the obligations which it has assumed, than the one who created the entity - the shareholder.\r\nThe research methodology is based on direct observation of the information published by analyzed credit institutions and financial and banking specialized publications. Important conclusions on the adequacy of Romanian banks are formulated in the final research.\r\n