The Impact of the Global Financial Crisis on the Management of Banking Risks

Alina Manta, Roxana Nanu

DOI: http://dx.doi.org/10.12775/EQUIL.2010.023

Abstract


The international macroeconomic and financial environment has undergone major negative changes since the global financial crisis. The magnitude and intensity of the economic and financial crisis have been underestimated by authorities worldwide. The uncertainties surrounding future developments remain high. In Romania, the main challenges posed by the external sector refer to the worsening perception of risks, including contagion effects from the adverse regional developments, the contraction of external markets, the less readily available external financing and the replacement of global liquidity risk by solvency risk. In spite of this, the banking sector continued to report positive financial soundness indicators, displaying noticeable financial results. Stress testing analyses indicate a solid absorption capacity of moderate shocks. On the other hand, we proposed ourselves to quantify the degree of correlation between the European and Romanian banking systems through the solvency indicator using the trend analysis.

Keywords


model; banking risk; global financial crisis; trend analysis

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References


Bessis J., (2007), Risk Management in Banking, 2nd Edition, John Wiley and Sons, LTD, pp. 460–472.

Chorafas D., (2009), Financial Boom and Gloom – The Credit and Banking Crisis of 2007– –2009 and Beyond, Palgrave Macmillan, Hampshire, pp. 61–70.

Opriţescu M. – coordinator, (2006), Management of Banking Risks and Performances, Universitaria Publishing House, Craiova, pp. 152–163.

National Bank of Romania, (2007), Annual Reports, 2004–2008.

International Monetary Fund, (2009), Global Financial Stability Report.








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