Assessment of Performance and Risk in the Banking System in Romania

Abstract

The banking system is characterized by multiple dimensions of financial risks that affect performance. Both credit institutions and financial institutions need to improve their risk management understanding and practice in order to successfully manage their entire business. Changes in the financial and institutional sphere have contributed to an increase in financial instability, generating consequences at two different levels: firstly, it has led to a rise in credit risk, and secondly it has raised concerns in the area of banking risk management through the emergence and expansion of performing techniques of risk management, evaluation and protection.

Keywords

• Credit institution
• Risk management
• Risk appetite
• Banking prudence
• Operational risk