Applying Basel II Requirements in Romania

Miru, Oana Maria and Hetes-Gavra, Roxana and Nicolescu, Ana Cristina (2008): Applying Basel II Requirements in Romania.

Abstract

The Basel II Agreement is a new stage in the development of prudential regulations. Compared to the initial agreement, Basel I, this one allows a more large and precise analysis of banking risks. The European approach of Basel II requirements aims to offer some common conditions for all the credit institutions. Secondly, in order to achieve the objectives of Basel II, an active implication of the supervisory authorities is needed, as well as a tighter cooperation between them in order to increase the financial integration at the European Union level. In what concerns Romania, that has recently joined the European Union, the implementation of Basel II requirements imply a new series of challenges both for credit institutions and for the Central Bank. These challenges, for the commercial banks, reside in adjusting the risk management techniques and the informational system, training the staff, obtaining the databases, etc. and for the Central Bank in both adapting the surveillance process and elaborating new regulations. This paper tries to analyze the main implications of implementing these requirements, both for the Romanian commercial banks and for the National Bank.

• Item Type: MPRA Paper
• Language: English
• Keywords: banking, prudential regulations, supervision, capital requirements
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General

References

Bieri, D.S. (2004) - The Basel Process and Financial Stability, Bank for International Settlements

Dierick F.; Fatima P.; Scheicher M.; Spitzer K. (2005) – The New Basel Capital Framewiork and its Implementation in The European Union, European Central Bank, Occasional Paper Series, No. 42, December

Georgescu F. (2007) – Stadiul actual al aplicarii Basel II, Conferinta Finmedia “Managementul Riscului In Perspectiva Basel II”, Bucuresti 24 April

Georgescu F. (2005) – Basel II – o noua etapa pentru modernizarea sistemului bancar romanesc, Sinaia, 2 November

Hetes-Gavra I.; Buglea A.; Roxana H. (2004) – Management Bancar, Editura Orizonturi Universitare, Timisoara

Münstermann B. (2005) - Basel II and Banks, Key aspects and likely market impact, Nomura Fixed Income Research

x x x - (2006) – Report on Financial Stability, National Bank of Romania

x x x - (2006) – Report on Financial Stability, National Bank of Romania

x x x – (2004) Implementation of Basel II: Practical Considerations, Basel Committee on Banking Supervision

x x x – (2003) Romania: Financial System Stability Assessment, International Monetary Fund, Washington, D.C,