Romanian banking system evolution and Basel II requirements

Nicolau, Mihaela (2006): Romanian banking system evolution and Basel II requirements. Published in: The Annals of Dunarea de Jos University of Galati No. 12 (December 2006): pp. 95-102.

Abstract

Before 1989 Romanian banking system was structured in the specific way of a centralized economy. Restructuring the banking system took its first step at the end of 1990 when the newly established commercial bank Banca Comerciala Romana (BCR) took over retail operations performed previously by the National Bank of Romania (NBR). Simultaneously some privately-owned banking companies were established and foreign banks' branches were integrated into the domestic banking activity. The unfriendly economic environment, the poor quality of bank managers and shareholders and cumbersome legal procedures led to an increase in tensions, the poor quality of credit portfolio representing the major difficulty of the banking sector. In the past years, NBR tried to control more the banking activity by implementing international settlements. More over, since Romania will be one of the European Union countries, it is absolutely necessary the harmonization of entire economic and financial system to EU regulations. The paper try to present the position of Romanian banking system in the framework of all these information.

• Item Type: MPRA Paper
• Language: English
• Keywords: Romanian banking system, banking systems in transition, bank regulation, Basel II, credit portfolio, bank concentration,
• Subjects: P - Economic Systems > P4 - Other Economic Systems > P43 - Public Economics ; Financial Economics; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

References

1. ISARESCU, M. (2006) – Recent macroeconomic and banking system developments, NBR, Bucharest

2. NBR (2000, 2001, 2002, 2003, 2004, 2005, 2006) – Annual reports, NBR, Bucharest

3. NBR (2005) – Financial Stability Report, NBR, Bucharest

4. NBR (2006) – Financial Stability Report, NBR, Bucharest