NON-BANK FINANCIAL INSTITUTIONS – ACTORS IN THE SHADOW BANKING SYSTEM

Abstract

This paper aims at investigating the importance of the non-bank financial institutions (NBFIs) as part of the shadow banking system in the Romanian financial system. The increased interest for the NBFIs in the last two decades is justified by the constant preoccupation both of the regulators and the financial analysts to find safety ways to provide funding to the real economy especially in time of economic and financial crisis without affecting the stability of the financial system. In order to obtain an accurate picture of the position of non-bank financial institutions in the Romanian financial system and the level of their activity we established several research objectives: determine the structure and the performances of the non-bank financial institutions; determine the level of the lending activity of the NBFIs and its evolution(the analysis is focused on the volume as well as the structure of the lending activity by currency, by debtor type and debtor activity sector. The methodology used to achieve these objectives is the quantitative and qualitative analysis using data provided by the monetary market authority through the interactive statistic data base available on the institution website and take into consideration the period 2008-2015. The findings of the research allowed us to draw the conclusion that, on one hand, the shadow banking system is poorly developed comparing to the traditional banking system and the NBFIs assets cumulated with the investments funds represent only 14% of the Romanian financial system, with an downward trend of the assets comparing with the banking system and a chaotic evolution of their profitability. On the other hand the non-bank financial institutions proved that their lending activity brings benefits for the real economy because they offer funds to those sectors of activities poorly financed by the traditional banking system as trade, services, mining and manufacturing, and agriculture and may be of interest to encourage the development of this segment of the financial market