Romania: Financial Sector Assessment Program

June 8, 2018

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Format: Chicago

Romania: Financial Sector Assessment Program, (USA: International Monetary Fund, 2018) accessed November 21, 2024

Summary

This paper assesses the stability of the Romania’s financial system. Romania’s financial sector has strengthened significantly over the last few years. Effective supervisory measures have helped reduce the high level of nonperforming loans from 21.9 percent at its peak in 2013 to 6.4 percent as of December 2017. Foreign-owned banks’ dependence on parent funding has significantly declined, while deposits from the domestic private sector have increased, reducing liquidity risks. Banks’ capital buffers strengthened, on the back of a slowdown of credit and low interest rates, with an average capital to risk-weighted assets now above 18 percent. However, some vulnerabilities are emerging, and policy action is needed to address these risks and strengthen financial stability.

Subject: Banking, Commercial banks, Credit, Financial crises, Financial institutions, Financial sector policy and analysis, Loans, Money, Stress testing

Keywords: A number of bank, Bank, Bank corporate governance, Bank resolution purpose, Bank soundness indicator, Commercial banks, CR, Credit, Eurozone bank, Global, ISCR, Loan, Loans, NBR, NBR securities, NBR subjects bank, Parent bank, Repo facility, Return on assets, Stress testing, Subjects bank, Supervisory approach

Publication Details

Pages:

81
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/160
Stock No:

1ROMEA2018003
ISBN:

9781484360446
ISSN:

1934-7685

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