Basel III Impact on Romanian Banking System Performance
Basel III Impact on Romanian Banking System Performance

Summary/Abstract: In the context of economic and financial crisis triggered in EU by autumn 2008, Romania's banking system like that in the other European countries, faced with the consequences of decreasing the standard of living the worsening of purchasing power (in terms of retail) and with gaps and delay occurred in the payment of corporate clients. The deteriorated quality of bank investments, the increasing of non-performing loans in bank portfolios, ultimately caused the accumulation of excessive risks within the banks. On the background of the crisis, the impact of Basel III is not only a financial regulation that is applicable to the banking industry; it will also determine the profitability of the banking system. Through this study, we propose a series of measures applicable to the credit institutions to mitigate the impact of alignment with the new capital requirements.

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