FINANCIAL SOUNDNESS INDICATORS

Abstract

Following the financial-economic crisis the financial systems worldwide have been subjected to enormous pressure, which called into question the need for financial system stability in general and in particular the one of the banking system. We overview the most important indicators in financial stability and we analyze the evolution of the main indicators of financial health for the Romanian banking system as a whole and for two banks, respectively BRD and Transylvania Bank . We find that banks with foreign shareholders tend to be more riskier then domestic banks, also an important role in banks stability is the presence of an institutional investor.

Keywords

• economic crises
• economic stability
• financial stability
• financial soundness indicators
• banking system