Romania: Financial Sector Assessment Program

IMF Staff Country Reports, June 8, 2018

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Romania: Financial Sector Assessment Program

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Bibliographic details

• Published: June 8, 2018
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781484360446.002

Summary assessment

• This paper assesses the stability of the Romania’s financial system.
• Romania’s financial sector has strengthened significantly over the last few years.
• However, some vulnerabilities are emerging, and policy action is needed to address these risks and strengthen financial stability.

Key findings and indicators

• Nonperforming loans reduced from 21.9 percent at its peak in 2013 to 6.4 percent as of December 2017.
• Average capital to risk-weighted assets now above 18 percent.
• Foreign-owned banks’ dependence on parent funding has significantly declined.
• 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.

Subjects and keywords covered

• Banking; Commercial banks; Credit; Financial crises; Financial institutions; Financial sector policy and analysis; Loans; Money; Stress testing
• Keywords include: 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

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• Country Report
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  • Country Report (PDF)