The Risk of Insolvency and its Impact on Romanian Banks

2016 ◽  
Vol 7 (2) ◽  
pp. 97-104
Author(s):  
Elena Violeta Drăgoi ◽  
Larisa Elena Preda
Keyword(s):  
Sustainable Development ◽  
Banking System ◽  
Capital Adequacy ◽  
Beneficial Effects ◽  
The Stability ◽  
The Impact

Abstract The new regulations on capital adequacy aimed to strengthen the stability of financial and banking system because a stable banking system contributes to assure a sustainable development with long term beneficial effects on economy. This article represents a review of the impact on new higher standards for Romanian banks regarding capital adequacy.

Influence of internal and external risks on sustainability of financial system of Аltai krai

2018 ◽  
Vol 35 (4) ◽  
pp. 133-136
Author(s):  
R. N. Ibragimov
Keyword(s):  
Sustainable Development ◽  
Financial Stability ◽  
Management Strategy ◽  
Financial System ◽  
Risk Management Strategy ◽  
The Sustainable Development ◽  
The Stability ◽  
The Impact

The article examines the impact of internal and external risks on the stability of the financial system of the Altai Territory. Classification of internal and external risks of decline, affecting the sustainable development of the financial system, is presented. A risk management strategy is proposed that will allow monitoring of risks, thereby these measures will help reduce the loss of financial stability and ensure the long-term development of the economy of the region.

scholarly journals The Demerger Impact upon Sustainable Development of Economic Entities: Evidence from Romania

2021 ◽  
Vol 13 (15) ◽  
pp. 8316
Author(s):  
Camelia Mirela Baba ◽  
Constantin Duguleană ◽  
Marius Sorin Dincă ◽  
Liliana Duguleană ◽  
Gheorghița Dincă
Keyword(s):  
Sustainable Development ◽  
Business Strategies ◽  
The Sustainable Development ◽  
Ex Post ◽  
Before And After ◽  
Almost All ◽  
The Impact ◽  
Profitability Ratios ◽  
Positive Effect

The Covid-19 induced economic crisis has significantly affected almost all businesses from nearly every sector, causing severe financial problems, lack of cash assets, and decrease of revenues. In this context, the economic entities were forced to look for adjustment and rescue solutions of their activities. One possible solution for the recovery and reorganization of economic entities’ activities is demerger. This paper evaluates the impact of demerger upon the sustainable development of economic entities in terms of economic efficiency and financial performances. To achieve this goal, a statistical analysis of profitability ratios before and after the demerger, as well as a structural analysis of 268 demerger projects for the April 2012–April 2021 period, were performed. The results attest there are no significant differences between the ex-ante and ex-post financial performances. However, demerger seems to have a positive effect upon analyzed companies helping them to overcome economic hardships, rethink their business strategies, and continue their activity in the medium and long-term time horizon.

scholarly journals Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

2021 ◽  
Vol 13 (10) ◽  
pp. 5535
Author(s):  
Marco Benvenuto ◽  
Roxana Loredana Avram ◽  
Alexandru Avram ◽  
Carmine Viola
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Banking Sector ◽  
Research Question ◽  
Interactive Effect ◽  
Banking System ◽  
Capital Adequacy ◽  
Banking Systems ◽  
Governance Index ◽  
The Impact

Background: Our study aims to verify the impact of corporate governance index on financial performance, namely return on assets (ROA), general liquidity, capital adequacy and size of company expressed as total assets in the banking sector for both a developing and a developed country. In addition, we investigate the interactive effect of corporate governance on a homogenous and a heterogeneous banking system. These two banking systems were chosen in order to assess the impact of corporate governance on two distinct types of banking system: a homogenous one such as the Romanian one and a heterogeneous one such as the Italian one. The two systems are very distinct; the Romanian one is represented by only 34 banks, while the Italian one comprises more than 350 banks. Thus, our research question is how a modification in corporate governance legislation is influencing the two different banking systems. The research implication of our study is whether a modification in legislation, thus in the index of corporate governance, is feasible for two different banking sectors and what the best ways to increase the financial performance of banks are without compromising their resilience. Methods: Using survey data from the Italian and Romanian banking systems over the period 2007–2018, we find that the corporate governance has a significant, positive and long-lasting effect on profitability and capital adequacy in both countries. Results: Taking the size of the company into consideration, the impact of the Index of Corporate Governance (ICG) on a homogenous banking system is positive while the impact on a heterogeneous banking system is negative. Conclusions: Our study provides evidence of the impact of IGC on financial performance and sheds light on the importance of the size of the company. Therefore, one can state that the corporate governance principles applied do not encourage the growth of large banks in heterogeneous banking sectors, thereby suggesting new avenues of research associated with new perspectives.

scholarly journals The Impact of BASEL Accords on the Management of Vietnamese Commercial Banks

2020 ◽  
Vol 13 (10) ◽  
pp. 228
Author(s):  
Hai Long Pham ◽  
Kevin James Daly
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Value At Risk ◽  
Banking System ◽  
Capital Adequacy ◽  
Bank Risk ◽  
Equation Modeling ◽  
Least Squares Regression ◽  
Basel Accord ◽  
The Impact

This paper is an attempt to empirically examine the impact of Basel Accord regulatory guidelines on the risk-based capital adequacy regulation and bank risk management of Vietnamese commercial banks. Our research aims to assess how Vietnamese commercial banks manage their capital ratio and bank risk under the latest Basel Accord capital adequacy ratio requirements. Building on previous studies, this research uses a simultaneous equation modeling (SiEM) with three-stage least squares regression (3SLS) to analyze the endogenous relationship between risk-based capital adequacy standards and bank risk management. A year dummy variable (dy2013) is included in the model to take account of changes in the regulation of the Vietnamese banking system. Furthermore, we add a value-at-risk variable developed by as an independent variable into equations of the empirical models. The results reveal a significant impact of Basel capital adequacy regulatory pressure on the risk-based capital adequacy standards and bank risk management of Vietnamese commercial banks. Moreover, banks under the latest Basel capital adequacy regulations are induced to reduce risks and increase banks’ financial performance.

Risks typology of the banking system economic security and methodological approaches to their assessment

2020 ◽  
pp. 90-97
Author(s):  
Elena V. FLENOVA
Keyword(s):  
Sustainable Development ◽  
Methodological Approach ◽  
Banking System ◽  
Economic Security ◽  
Capital Adequacy ◽  
Threshold Values ◽  
The Sustainable Development ◽  
Advantages And Disadvantages ◽  
Starting Point ◽  
Security Indicators

The aim of the study is to identify the advantages and limitations of the system of standards used in modern Russia as threshold values of indicators of threats to the economic security of the banking system. During the study, we developed the conceptual apparatus of the theory of economic security management, determined the composition of risks of the sustainable development of the banking system and analyzed indicators of threats to its functioning. In accordance with the goal, we presented interpretation of the conceptual structures “economic security of the banking system” and “banking security”. We carried out scientific research using the gnoseological potential of the theory of economic security, the theory of credit and banking, and the theory of risk management. To solve the research problems, we used methods of economic grouping, economic comparison (comparison), abstract-logical method, etc. The use of these methods made it possible to present a typology of risks and threats to the economic security of the banking system, as well as to analyze the methodological approach adopted by the banking segment of the Russian economy to determine threshold values of economic security indicators based on the use of standards. These standards are based on the accounting of indicators of capital adequacy level and indicators of return on capital. We formulated the advantages and disadvantages of this approach taking into account the interests of owners, managers and clients of banks and non-bank credit organizations. It is necessary to develop a methodology for determining the level of risks of the sustainable development of the banking system, taking into account the increase in the level of uncertainty of environmental factors. The obtained conclusions are a starting point for further study of indicators of threats to the economic security of the banking system and justification of their thresholds.

Features of Forming of Profits of Commercial Banks in Terms of Coronaries

2020 ◽  
Vol 8 (6) ◽  
pp. 75-82
Author(s):  
A. Novikov ◽  
A. Zverev ◽  
M. Mishina
Keyword(s):  
Commercial Banks ◽  
Banking System ◽  
Internal Factors ◽  
Russian Economy ◽  
Internal Characteristic ◽  
The Stability ◽  
Constituent Elements ◽  
The Impact ◽  
Entire Economy

A significant role of the banking system in ensuring the functioning of the entire economy, by means of organizing the movement of borrowed capital between individual industries and the implementation of financial needs is achieved only if this system, and therefore its constituent elements, are stable. In this regard, the stability of the banking system should be considered as a fundamental internal characteristic, which ensures the existence and stable development of the Bank in a market economy under the influence of external and internal factors. In 2020, commercial banks were faced with the impact of the coronavirus pandemic on the Russian economy and the banking system in particular. At the same time, the current situation of banks ' functioning is characterized not only by the presence of a corona crisis, but also by the internal development of the system itself, which, following the uberization of the world economy, dictates to commercial banks the need to develop and implement financial technologies and form ecosystems. In these conditions, the need for commercial banks in financial resources increases, which is reflected in the increasing role of profit in the Bank's activities and development. This article focuses on the impact of the coronavirus pandemic on the banking system of the Russian Federation and the economy as a whole, and also identifies the features of profit formation and the specifics of the functioning of commercial banks in the coronavirus crisis period.

Beyond boom and bust: a strategy for sustainable development in the North

Polar Record ◽  
1989 ◽  
Vol 25 (153) ◽  
pp. 115-120 ◽  
Author(s):  
Michael Pretes ◽  
Michael Robinson
Keyword(s):  
Sustainable Development ◽  
New Mexico ◽  
Renewable Resources ◽  
Local Communities ◽  
Current Income ◽  
The North ◽  
Northern Regions ◽  
Boom And Bust ◽  
The Stability

AbstractMany northern regions of North America have come to rely heavily on extraction of non-renewable resources for their income, at the expense of traditional land-based economies. Such extraction leads to boom and bust income, destructive to long-term planning for sustainable development. Natural resource trust funds, as exemplified in Alberta, Alaska, Montana, Wyoming and New Mexico, would help to provide the stability that is currently lacking in Yukon and the Northwest Territories. Maintained by setting aside part of the current income from non-renewable resources, they yield capital and income that can be used to encourage the mixed, self-sustaining local communities appropriate for the North.

scholarly journals BRICS’ Contribution to the Global Transition to Sustainable Consumption and Production Patterns

2021 ◽  
Vol 16 (1) ◽  
pp. 7-28
Author(s):  
Andrey Sakharov ◽  
◽  
Inna Andronova ◽  
Keyword(s):  
Sustainable Development ◽  
Sustainable Consumption ◽  
Crisis Response ◽  
Brics Countries ◽  
Production And Consumption ◽  
Sustainable Consumption And Production ◽  
International Climate ◽  
The Impact

The rationalization of production and consumption patterns lies at the core of sustainable development as it determines the level of anthropogenic impact on the environment, which is ultimately the subject of all international climate arrangements. This topic broadly encompasses not only sustainable development goal (SDG) 12, but also certain aspects of SDGs 7 and 11. The role of BRICS countries (Brazil, Russia, India, China and South Africa) in promoting the concept of sustainability globally is determined by their place among the leading producers and consumers of natural resources and emitters of pollutants, as well as the parties to major global agreements in this area. This article focuses on the institutional contribution of the BRICS agenda to the international community’s efforts to achieve the SDG targets related to the rationalization of resource production and consumption. In addition, because the socio-economic crisis of 2020 caused by the COVID-19 pandemic is seen as one of the factors impeding the implementation of the goals, the article also highlights the impact of COVID-19 and the crisis response of BRICS governments on long-term strategic planning for sustainable development.

scholarly journals Is Bigger Better? The Impact of the Size of Banks on Credit Ratings

e-Finanse ◽  
2020 ◽  
Vol 16 (2) ◽  
pp. 24-36
Author(s):  
Patrycja Chodnicka-Jaworska
Keyword(s):  
Credit Ratings ◽  
Capital Adequacy ◽  
Panel Data Models ◽  
Management Quality ◽  
Financial Conditions ◽  
Thomson Reuters ◽  
Dependent Variables ◽  
European Banks ◽  
The Impact

Abstract The aim of the paper was to analyse the factors influencing European banks’ credit ratings by taking into account the size of these institutions. A literature review onthe indicators that can impact bank notes has been made. As a result, the following hypotheses have beendrawn:banks’ capital adequacy, profitability, liquidity and management quality have a significant influence on bank credit ratings. Bigger banks receive higher credit ratings than the smaller ones in similar financial conditions. To verify the presented hypotheses ordered logit panel data models have been used. The analysis has been prepared by using the quarterly data from the Thomson Reuters database for the period between 1998 to 2015. The European banks’ long-term issuer credit ratings proposed by S&P, Fitch and Moody are used as dependent variables. The sample has been divided into subsamples according to the size of a bank andbanking sector and capitalization.

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