Nicolae BALTEŞ, Maria-Daciana RODEAN (Cozma)


Reforms to the European banking system aim to increase commercial banks’ ability to withstand various shocks and volatility of the current economic and social environment. Changes to European and international legislative framework aimed among other things, the level of capital adequacy and quality of loan portfolios, which are most affected by the turmoil arising in financial markets. Thus, it was considered appropriate to studying these two groups of prudential ratios, over a period of 9 financial years (2007-2015) at 8 banking systems in Europe: Austria, Czech Republic, France, Germany, Greece, Italy, Hungary and Romania. The results obtained showed that the Romanian banking system has an adequate level of capital, although the quality of loan portfolios has significantly decreased, especially in the last period of the research. National Bank of Romania’s involvement in the significant reduction of risk and sovereign debt crisis contributed to the increase of comparability of the Romanian banking market with the European market. Major problems have been reported in the Greek and Italian banking systems, largely affected by the sovereign debt crisis.


total own funds rate, tier 1 capital rate, non-performing loans rate, the provisioning coverage of equity, capital adequacy level, quality of loan portfolios.


Books and articles:

Badea L, Socol A, Drăgoi V, Drigă I, 2010, „Banking Risk Management”, Economica Publisher, Bucharest.

Balteş, N., Rodean, M.D., Minculete, G.,2014, „Study regarding the correlation between nonperforming loans and gross domestic product in Romanian economy”, Theoretical and Applied Economics. Special Issue, available online:

Balteș N., 2010, „Analiză și diagnostic financiar”, Editura ULBS.

Bessis J., 2015, „Risk Management in Banking”, 4th Edition, John Willey & Sons Ltd, UK

Bichi, C., 2013, „Banking resolution and its role in maintaing financial stability”, available online:,

Consultative document, 2014, „Basel III: The Net Stable Funding Ratio”, Basel Committee on Banking Supervision, disponibil online:

Kattai,R. 2010, „Credit risk model for the Estonian Banking Sector”, Bank of Estonia Working Papers, 1/2010

Moinescu, B., „Assets management quality”, available online:

Rodean (Cozma) M., Balteș N. 2014, „Capital adequacy – a requirement of banking system’s stability”, Conference Proceedings, Vol. 3, ISBN gen:978-606-26-0215-4, ISBN Vol. 3: 978-606-26-0218.5

Reports and legislation:

Basel Agreements, available online: :

NBR Annual Reports 2007-2015

NBR Monthly Bulletins from 2007-2015

NBR, Financial Stability Report 2007-2015

B.Mesnard, A.Margerit, C.Power, M.Magnus, (2016), „Non-performing loans in the Banking Union: stocktaking and challenges”, European Parliament, Economic Governance Support Unit, available online:, accessed on 22.06.2016

International Monetary Fund – „Financial Soundness Indicators”

Regulation 575/2013 - on prudential requirements for credit institutions and investment firms - published in the Official Journal of the European Union L176 / 1 of 27.06.2013;

World Economic and Financial Surveys, IMF, (2016) – „Global Financial Stability Report – Potent Policies for a Successful Normalization”, available online:, accessed on 20.06.2016

Online sites:

Full Text: PDF

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.