CHANGES INSIDE THE ROMANIAN BANKING SYSTEM IN THE FRAME OF THE FINANCIAL AND BANKING CRISIS

Abstract

After the year 1990, bashfully at first, but then more and more prominently, the countries of Central andEastern Europe have become major loan recipients from foreign banks, either cross-border, or local through opensubsidiaries in the emerging European countries. The Romanian banking system continues to be among the mostdynamic economic areas in Romania. Further on characterized by a relatively low level of financial intermediation,the Romanian banking market is considered to have potential for the possible buyers, especially in the crisis periodwhen many small banks looked for a merger with another small or medium bank for consolidation reasons. Althoughthe Romanian banking system faced crisis pretty well comparative with the rest of the world countries, if we considerits equity, its profits kept on decreasing every year and the rate of the non-performing loans increased.

Keywords

• banking system consolidation
• market share
• profitability
• Romania