The Decline of Traditional Banking Activities

AuthorGabriela Cornelia Piciu, Georgiana Chitiga, Nicoleta Mihaila, Carmen Trica
The Decli
Piciu Gabriela Cornel
Financial and Monetary Resear
Financial and Mo
Financial and Monetary Resea
Academy of Economic Studies
The decline of traditio
quantitative and qualitative aspe
increased propensity of banking
engaging in other "non-
risks. Non-
traditional activities o
risks and vulnerabilities i n the f
regulated as well as are the tradi
twofold: the stability of the b ank
achieve financial stab ility in the
transition period of
changing th
traditional activities) to enable ba
oriented to the
financial banking
traditional banking a
1. Introduction
new industrial economies w
rate than the population. These e
year 2015 these countries will be
the same as the OECD countries.
was not any single model
reasons for such a huge and fast g
reasons include culture: the peop
literacy rate, i.e.
being able to
countries like Malaysia and South
therefore these countries were fi
alliance among the countries of S
Performance and Risks in the
f Traditional Banking Activities
, Chiţiga Georgiana
, Mihăilă Nicoleta
, Trică
earch Center „Victor Slăvescu”, Bucharest,
Monetary Research Center „Victor Slăvescu”, Buch
search Center „Victor Slăvescu”, Bucharest,
Faculty of Agricultural and Environmental Econ
itional banking
activities raise the issue of efficiency of finan
the increasing danger of banking failures as well as
ng institutions to assume additio
nal to risks either in the form
onal" financial activities which give a promise for greater pro
s of banking as financial products dealers (f
inancial derivative
e form of moral hazard issues. That is the reason why and t
aditional activities. Challenges posed by th e decline of tradit
nking system must be maintained, while the banking system n
he long run.
One possible way is
an appropriate regulatory fr
the structure of banking activity(reduction of traditional activ
banking institutions to perform a
deep methodic analysis of
ng efficiency.
g activities; quantitative aspects
; qualitative aspects
witnessed post
1970 economic take off with GDP
e economies shared 20% of global output and it is
be producing approximately one
third of the outpu
el that could be presented for such a success but
st growth within these economies in this short perio
eople in these countries worked hard and importan
o read and write; secondly, external factors, such
uth Korea which faced military threat from some c
financially supported by the US. Hence, this
f South East Asia and the growth of Japanese eco
the European Economy
ică Carmen
ancial stability, in terms of
as of susceptibility due to
rm of riskier loans offer or
profitability, but also higher
ives), generate an increasing
d th ese activities sho uld be
ional banking activities is
needs to be restru ctured to
y framework to encou
rage a
ctivities and expanding non
of non traditional activities,
DP growing at a faster
is predicted that by the
tput, which is virtually
ut there are some main
eriod o
f time. The main
tance was given to the
uch as in some of the
e communist countries;
ncouraged the political
conomy was emulated.

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