Romania banking structure in the current economic and financial context - Rodica Oana Ioniță and Ion Stancu

The purpose of this paper is to identify the importance of the banking system during the current economic and financial in Romania during 2000-2014. The research is focused on the role of the banking system as a pillar of the financial system in Romania. The research hypothesis is that there are variables owned by the banking sector which gives us warning signals for the periods of distress facing by the financial system. The success is to determine these variables with a sufficient time before the negative effects on the economy, so that they can act to mitigate any potential negative effects that may occur. This is possible if the variables are continuously monitored , thus being a dynamic process and if there are performed professional judgments based on the economic substance of the analyzed variables. The utility model is that once identified these early warning indicators, they can be included in the objectives of monetary policy makers, so that their behavior will be continuously analyzed and monitored to identify potential adverse effects of other economic variables by contagion, as well as on the economy. The paper also presents the importance of the Basel Committe on banking supervision. Analyzing the behavior of key banking variables, we could identify those moments of economic and financial difficulties which were felt on the entire economic system.