ROMANIAN BANK LENDING DURING THE FINANCIALCRISIS

This paper examines the effects of the financial crisis on lending within the Romanian banking system. Lending in Romania contracted significantly since the fall of last year for two reasons. On one hand, the central bank’s new crediting norms, that intended to limit borrowing risks, entered into force in October 2008 and forced banks to take extra-measures. On the other hand, the first signs of the economic crisis started to show in Romania at the same time and affected the lenders’ liquidity. The development of Romanian bank lending at the end of 2008 reflected the impact of both credit demand and especially credit supply.financial crisis, bank lending, credit demand, credit supply, household loans, corporate loans

LIQUIDITY RISK MANAGEMENT IN BANKING

The objective of this paper is to provide a global perspective of the liquidity risk from a banking societies‘ viewpoint. Our paper belongs to the technical studies that analyze the concrete way in measuring the liquidity risk at the level of the banking societies from Romania. The study is structured on chapters that present the theoretical background in liquidity risk management and new trends in measuring, monitoring and controlling liquidity risk. Also, the paper contains a study cases part, which presents the actual stage and the challenges of the measuring the liquidity risk. We try to underline the importance of a flexible banking system, which should be able to measure and forecast its prospective cash flows for assets, liabilities, off-balance sheet commitments and derivatives over a variety of time horizons, under normal conditions and a range of stress scenarios, including scenarios of severe stress.liquidity risk,, simple net liabilities, cumulated net liabilities, liquidity, rate, average maturities transformation, immediate liquidity

INTEREST RATE RISK MANAGEMENT IN BANKING

Financial intermediation often exposes banks to interest rate risks by creating mismatches in the maturity structure and re-pricing terms of their assets and liabilities. The interest rate risk is along with the liquidity risk a fundamental risk associated to the management of bank resources. Both types of risk are caused by the uncertainty regarding the way depositors may withdraw their investments in case of interest rate variation, on one hand, and by the uncertainty that involves the interest rate paid by the commercial bank to its customers in order to attract and keep funds in form of deposits, on the other hand. The interest rate risk expresses the loss registered by the bank because of the unexpected evolution of the interest rate.interest rate risk, sensitive assets and liabilities, assests-liabilities management, GAP analysis