THE RISK AND FRAUD FACTORS IN THE CONTEMPORARY FINANCIAL BANKING SYSTEM
THE RISK AND FRAUD FACTORS IN THE CONTEMPORARY FINANCIAL BANKING SYSTEM

Summary/Abstract: The research conducted by the banking system financial audit revealed major financial scandals that rocked the business world and created a chain reaction, litigation and social convulsions, failed investments, plus tens of thousands of unemployed. Bad loans speculate principle disregarded by economists, namely, that although man is a rational being and should act as such in economic decisions, their behavior differs depending on the amounts at stake and the position that are. Financial stability or profitability is threatened by the economic conditions of the industry or operating entity. In this context, we can include negative recurrent cash flows, resulting from the inability to generate operating cash flows, while also reporting increases in earnings. Also, we can add the existence of excessive pressure on the leaders of banking companies from the requirements or expectations of third parties. All these factors can be classified according to three conditions of the fraud, such as: incentives / pressures, opportunities, attitudes / reasons. Some of these risk factors occur when there are distortions in the misappropriation of assets. Thus, bankers are scrambling to get as much, to as many, and the State was involved in this business in his way. Watching the similarity of the global market economy and the public square, the country, we can say that it is, always, a well organized group, only one crew member being in sight. Each investor seems to have a chance, because he participated willingly, notwithstanding the publicity and the border state. One thing is certain: for the big banks to collapse, they need some "help".

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