Financial Intermediation in Romania

Abstract

The study of financial intermediation is a current issue constantly analyzed at the level of national economies or geographical areas. The specialized literature is rich in materials and support models. Therefore, we set out to analyze the degree of financial intermediation in Romania in the current period. By studying the causal relationship between the loans to the private sector and banking sector assets as a share of GDP, we will highlight current trends, capturing the subsequent causes and effects. In the future, this paper may be part of a larger study that aims to investigate the causes for the low level of financial intermediation in Romania, to identify the main obstacles in sustainably increasing the value of the indicator, and to sketch out possible solutions for overcoming them.

Keywords

• financial intermediation
• financial system
• non-government credit