Empirical Study on the Relationship between Efficiency, Capital and Risk into the Banking System of Romania

Abstract

In this article, we study the relationship between the efficiency of the Romanian banks and the risk taken and also the banking capital. In our opinion, this analysis is important because it offers important findings regarding the influence of risk on banking profitability and on banking efficiency. Moreover, over the analyzed period the risks faced by banks increased significantly. Therefore, it is important to know exactly the relationship between efficiency, capital and risk in order to better understand the behavior of bank management.

Keywords

• banking profitability
• banking risk
• crisis