The Decline of Traditional Banking Activities

• Author: Gabriela Cornelia Piciu, Georgiana Chitiga, Nicoleta Mihaila, Carmen Trica
• Pages: 351-356

The Decli

Piciu Gabriela Cornel

1

Financial and Monetary Resear

2

Financial and Mo

3

Financial and Monetary Resea

4

Academy of Economic Studies

Abstract:

The decline of traditio

quantitative and qualitative aspe

increased propensity of banking

engaging in other "non-

traditiona

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

Keywords:

traditional banking a

1. Introduction

The

new industrial economies w

rate than the population. These e

year 2015 these countries will be

the same as the OECD countries.

There

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

cline

o

f Traditional Banking Activities

nelia

1

, Chiţiga Georgiana

2

, Mihăilă Nicoleta

3

, Trică

earch Center „Victor Slăvescu”, Bucharest,

gabriel

Monetary Research Center „Victor Slăvescu”, Buch

georgiana_chitiga@yahoo.com

search Center „Victor Slăvescu”, Bucharest,

nikmi

ies,

Faculty of Agricultural and Environmental Econ

carmen_trica@yahoo.com

itional banking

activities raise the issue of efficiency of finan

spects

–

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

i

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

es.

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

enco

f South East Asia and the growth of Japanese eco

the European Economy

351

ies

ică Carmen

4

iela_piciu@yahoo.com

ucharest,

mihaila@yahoo.com

conomics,

Bucharest,

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.