Using stress testing methodology in evaluating banking institution’s exposure to risk

In order to correctly estimate the unpredictable effects on their transaction portfolios, the banks developed stress testing methods which turned out to be a very important tool in the bank supervision process. Moreover, the supervision authorities started using stress-testing methods for evaluating systemic risk and for determining the adequacy degree of capital in the banking sector. Taking into account the importance of these simulations, the present paper presents methodologies with which stress testing methods could be implemented by banks as well as their role in the management of credit risk, market risk and liquidity risk while also meeting the requirements imposed by the Basel II accord. By means of a case study we have simulated several scenarios in which the inter-bank market interest rate was varied, quantifying its impact on bank revenues as well as on the market value of their portfolios.stress testing, credit risk, market risk, liquidity risk, capital adequacy, Basel II Accord

Implications of Human Trafficking on the Romanian Society

In order to raise awareness of the phenomenon of trafficking in human beings among different institutions (law enforcement, child protection, NGOs) and to improve the measures they can take, the article aims to identify how severe is the phenomenon of human trafficking in Romania. We also want to identify the repercussions of this phenomenon as well as to identify the solutions at political and legislative level in order to reduce or even combat this phenomenon