CREDIT RISK - A MAJOR RISK OF CREDIT INSTITUTIONS IN ROMANIA
CREDIT RISK - A MAJOR RISK OF CREDIT INSTITUTIONS IN ROMANIA

Summary/Abstract: Nowadays the risk is a fundamental feature, which is found in any environment, an economic environment, banking, or a monetary one. This problem regarding the risk stems from the fact that we live in a civilization surrounded by risks, which are the result of the changing environment in which banks operate with new options to expand their businesses. Following the activities of the bank, with regard to their operations implemented for maximizing their profits and expansion occur banking risks. Bank must identify and manage properly the risks that may arise, facing thus the competition and rising the profit and the position they occupy in the market. In this paper we propose to realize an analysis of the structure of the loan portfolio in Romania in 2009-2013, but also the evolution of the indicators of quantification of credit risk in Romania. The study concludes that credit risk in Romania is still a major risk faced by credit institutions. A positive aspect that we have identified is the slowdown in non-performing loans during the same period.

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