IMF Staff Country Reports

Romania : Financial Sector Assessment Program-Technical Note-Balance Sheet Analysis

Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

June 8, 2018

Electronic Access:

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Summary:

This Technical Note analyzes the macro-financial interlinkages, sectoral dependencies, and potential balance sheet vulnerabilities for all resident sectors in Romania. The financial sector size and interconnectedness have been increasing significantly. The overall amount of intra-financial-sector exposures grew from 5 percent of GDP in 2008 to approximately 7 percent of GDP in 2016. The banking system is at the center of intra-financial-sector balance sheet connections, as an overall net borrower that channels funds to other domestic sectors. The funding of bank liabilities by domestic financial institutions has been rising and stood at close to 10 percent of banks’ nonequity liabilities in 2016. Moreover, banks are also exposed on the credit side to nonbank financial institutions, in particular to other financial institutions.

Series:

Country Report No. 18/162

Subject:

Balance sheets Borrowing Financial sector Financial Sector Assessment Program Foreign exchange