IMF Staff Country Reports

Romania : Financial Sector Assessment Program

Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

June 8, 2018

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This paper assesses the stability of Romania’s financial system. Romania’s financial sector has strengthened significantly over the past 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 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.

Series:

Country Report No. 18/160

Subject:

Anti-money laundering Banking supervision Basel Core Principles Combating the financing of terrorism Crisis management Financial markets Financial safety nets Financial sector Financial Sector Assessment Program Financial system stability assessment Macroprudential policies and financial stability Reports on the observance of standards and codes Systemic risk