LOAN LOSSES PROVISIONING PROCESSES IN ROMANIAN BANKS DURING JANUARY 2007 - FEBRUARY 2011

30 June 2011


Authors
Author Adela Socol
Page: 11
Abstract

The paper presents the loan loss provisioning phenomenon at the level of Romanian banks, based on a very detailed set of rules in the area. Using data collected by National Bank of Romania, we find evidence of the significantly increase in the banking loan loss provisions in the last analyzed years. We investigate the dynamics of the loan losses provisioning processes and present the national regulatory framework. The paper concludes that the actual situation in the field force Romanian banks to react and improve their risk management.

Keywords
Loan Loss Provisions, Loan Classification in Romanian Banking System, Provision Coefficient
References
N/A
Article
Article