The Role of Management in the Banking Sector

Author:Gabriela Cornelia Piciu, Georgiana Chitiga, Florin Balasescu, Catalin Dragoi
The Role o
Piciu Gabriela Cornelia
Financial and Monetary R
Financial and Monetary Res
Financial and Monetary Res
Financial and Monetar
As well known, in th
necessity of a serious regulation f
be of more importanc
banking institutions
and its adjac
typically subjected to rigorous r
financial area it is necessary an in
management in terms of quant ita
mechanism represents the most r
risk management
of banking in
efficiency.For exemple, the rating
Keywords: regulation;
risk mana
1. Introduction
Effective regulation and superv
financial stability and efficient f
important role in the payments sy
of banks and financial institution
result of the information technolo
The banking crises and financial
al institutions, thereby incr
and regulation are ne
system of the country. There has
or counter-
productive. There are
counter productive, as it imposes
It is
also believed that it underm
with excessive risk taking; in othe
second view held says tha
become completely free of sup
Performance and Risks in the
e of Management in the Banking Secto
, Chiţiga Georgiana
, Bălăşescu Florin
, Dră
y Research Center „Victor Slăvescu”,
Research Center „Victor Slăvescu”,
Research Center „Victor Slăvescu”,
tary Research Center „Victor Slăvescu”
the economic literature the concept of market failure illustr
n framework.
In this context, the failure of a bank institution i
he failure of other types of bu siness firms because of the int
jacent spill over of
systemic risk in space and time.
As a resul
s regulat
ion, and bank failures are one of the major public
international regulation framework of banking convergence to
titative and qualitative indexes
of banking institutions.
In thi
st referential framework of micro prudential banking
in struments and manager behavior in the context of
ting system and the early stage
; prudential banking supervision
ervision of banks and other financial institutions
t functioning of any economy because the banki
system and in the mobilization and distribution of
tions has become difficult
in the last decade or so
ology and banks expanding their business from one
ial crises have also been blamed because of this in
ncreasing the importance of effective supervision an
needed to reduce the weaknesses that can pose a t
as been an ongoing debate on supe
rvision as to wh
are two views held in this context; the first view i
es a cost on end users. Also, it results in a less effic
rmines market discipline and therefore removes th
ther words it creates a moral hazard.
that supervision is an essential requirement. Sinc
upervision this encourages banks to take excess
the European Economy
răgoi Cătălin
ustrates among other things
n is generally considered to
interconnectedness between
sult, banking institutions are
lic policy objectives.
In the
e to approach the topics risk
this respect , the BASEL II
oriented mostly to
ss test
an specific banking
ons is essential to the
nking system plays an
of savings. Supervision
so. This is mainly the
one country to another.
internationalization of
and regulation.
a threat to the banking
whether is it productive
is that supervision is
ficient banking system.
the penalty associated
ince the markets
essive risks. With the

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