...2013, 594-604 ANALYSIS OF THE ROMANIAN BANKS’ PERFORMANCE THROUGH ROA, ROE AND NON-PERFORMING LOANS MODELS Adela Socol1 Adina Elena Dănuleţiu2 ABSTRACT: General assumption of this study is that the banks performance represents their ability to generate sustainable profitability and that banks’ profitability is one important issue of contemporary banking field, grace to its role in emphasizing of the financial soundness of banks, abreast to others indicators regarding to the capital adequacy or assets quality. The paper examines how is affected banking profitability (expressed through traditional measures of performance ROA - Return on Assets and ROE - Return on Equity) by the CRR Credit risk ratio in Romanian banking system during March 2008 - June 2013. We developed two regression models in order to study the dependence between mentioned variables. We found that ROA and ROE vary each of them depending on the CRR Credit risk ratio, which is expressed as the ratio of gross value of exposure to loans and related interest under “doubtful” and “loss” to total classified loans and related interest pertaining to non-bank loans, off-balance sheet items excluded. Keywords: ROA Return on Assets, ROE - Return on Equity, Credit risk ratio, Regression model JEL Codes: D12, C58, G21 Introduction Significant level of non-performing loans and faster cross-border deleveraging are considered the major weaknesses of the Romanian banking sector, according to National Bank...
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...policy budgets – an overview 19 2.1 Trends in funding of innovation measures 19 2.2 Departmental and implementing agency budgets for innovation policies 2 1 2.3 Future challenges for funding of innovation policy 22 3. Thematic report: Demand-side innovation policies 23 3.1 Trends in the use of demand-side innovation policies 24 3.2 Governance challenges 30 3.3 Recent demand-side innovation policy measures 3 1 3.3.1 Sectoral specificities 3 1 3.3.2 Good practice case 3 1 Appendix A : Plan to increase the efficiency and effectiveness of RDI expenditure (Summary of provisions) 32 Appendix B : Recommendations of World Bank’s Functional Review for the reform of the Romanian RDI system 34 Appendix C : Research and innovation policy measures for Romania 35 Appendix D : References 37 Mini Country Report/Romania i Preface The European TrendChart on innovation is the longest running policy benchmarking tool at European level. Since its launch in 1999 it has produced annual reports on national innovation policy and governance, created a...
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...competitiveness within the post-crisis economy. Causes, evoiutions and possibie innovative soiutions to fight against the undesirable effects of the economic crisis Laura Mariana CISMAÇ West University Timisoara laura.cismas@feaa.uvt.ro Ruxandra Ioana PITORAC West University Timiçoara ruxandrapitorac@gmail.com Abstract. The main objective of this paper is to highlight the need for promoting a new vision regarding competitiveness mostly in the context of amplifying the effects and the complexity of the nature of crisis manifested now on the international level (economic, environment, demographic, value and moral etc.). The economic thinking pays increased attention to the issues related to economic crisis, as well as the development of theories that give satisfactory answers about the causes and, especially, the solutions to the crisis. Using scientific observation and comparative case study as research methods, this paper aims to make a theoretical critical review of the theories regarding the causes of economic crisis over time and to identify and analyze some anti-crisis policies. Keywords: economic competitiveness. crisis; macroeconomic theories; anti-crisis policies; JEL Classification: E30, GOL REL Classification: 81, 8M. 24 Laura Mariana Cisma§, Ruxandra ioana Pitorac Introduction Theoretical controversy on crises has augmented over the last two decades with a special accent on system and stmcture crises, as well as on the crisis of intemational economic relations...
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...Determinants of Banking Instability in Malaysia Final Year Project Proposal – April 2015 Submitted By: Name & Roll Number Submitted To: Supervisor’s Name: This proposal is submitted to SEGi UNIVERSITY on 10/04/15, in partial fulfillment of the requirement for the degree BBM. EXCLUSIVE RIGHTS ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a retrieval system or transmitted in any form or by any means without the prior consent of the author. DECLARATION I hereby declare that: * This undergraduate research project is the end result of my own work / research and that due acknowledgement has been given in the references. * No portion of this research project has been submitted in support of any application for any other degree or qualification of this or any other university. * The word count of this research proposal is 10,276 words. Name of the Student Signature Date ACKNOWLEDEMENTS I would like to thank my Final year project’s supervisor [NAME], who has been an inspiration and provided me information regarding banking instability, which proved to be very useful in completing this project. I also appreciate the hard work and efforts of my friends and former colleagues who has provided me with useful information / data which helped me choose this topic. PREFACE This research paper is submitted in partial fulfillment of the requirement for Bachelor of Business Administration (HONS) Banking and...
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...entry of foreign banks into the Central and Eastern European (CEE) markets. We modify the Dunning’s eclectic model by adding the special case of financial liberalization and timing of foreign entry for emerging markets. In the empirical analysis we use a survey based study to analyze the entry process of foreign banks. Bank level data from Bankscope database is also used to analyze the financial advantages of foreign banks. The empirical analysis showed that the eclectic paradigm with modifications to ownership and location-specific advantages is applicable to explain the entry of foreign banks into transition markets. The analysis also indicated that the entry of foreign banks is more intensive during banking crises in the CEE countries. 1. Introduction The internationalization process of firms has been intensively studied since the 1960s. Due to the increase in international capital flows, foreign direct investments and international trade at that time, active development of international banking also began. In the transition countries, international banks have operated only since the beginning of the 1990s, after a significant liberalization of the financial market and elimination of entry barriers. At present foreign banks1 already have more than 60 per cent of the market in the CEE countries. Growing foreign ownership in the banking sector raises several interesting questions about the entry process of foreign banks into transition economies. There are no generally accepted...
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...The NeWer EntrantS Poland, Hungary & Romania The NeWer EntrantS Poland, Hungary & Romania As globalization of the market place continues, many companies that conduct within their nation’s boundaries will find it difficult to survive. Currently worldwide competition is influencing virtually every business in Canada, United States and other industrialized nations. One way to cope with this is to expand beyond a country’s own frontiers. Poland, Hungary and Romania are three countries that are very competitive in the skilled manual labour. This makes them a very attractive location for large corporations to outsource low, medium and sometimes even high levels of production. Multi-national firms can take advantage of cheap labour, high level of technical competence, and excellent infrastructure in these three nations. The Central Eastern European countries are part of the expanding Europe and the countries that fall within this area have opened up many opportunities for multi-national Firms. Many of these countries have recently joined the European Union and NATO have made formidable alliance and agreements that boost their investment opportunity value. History: Poland is a large country with a long and distinguished history. (Europe Global Studies, pg. 48) Poland's history as a state begins near the middle of the 10th century. By the mid-16th century, the Polish-Lithuanian Commonwealth ruled a vast tract of land in central and Eastern Europe. During the 18th century...
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...Positive and Negative Effects of the Global Financial Crisis Harlita H. Tomlinson Capella University BMGT8114: Accounting in the Global Era Dr. Wendy Achilles June 8,2014 Table of Contents Abstract 3 Positive and Negative Effects of the Global Financial Crisis 4 Background on the Global Financial Crisis 5 Global Financial Crisis and Its Negative Effects 9 Lack of Financial Sector Regulation and Oversights 9 Increase in the Number of Bankruptcies 11 Global Financial Crisis and Its Positive Effects 12 Designing Regulations to Monitor the Financial Sector 12 Global Governance as a Side Effect of the Global Financial Crisis 13 Lessons Learned 16 Domestic Lessons Learned 16 Global Lessons Learned 17 Lessons from Romania. 18 The Role of Financial Executives in GFC 19 Conclusions 21 References 24 Abstract The first financial crisis of the twenty-first century has not yet ended, according to Gorton and Metrick (2012), the wave of research on the crisis has already exceeded any single reader’s capacity, with the pace of new work only making this task harder. The Global Financial Crisis is considered by many economists to be the worst financial crisis since the Great Depression. Global Financial Crisis resulted in the threat of the total collapse of large financial institutions, the bailout of banks by national governments, and market downturns around the world. In the aftermath of this crisis, the housing market declined significantly and has not...
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...runs from the Adriatic port of Omisalj eastwards to Sisak, where it splits into a northern route to Hungary and an eastern route to Serbia. Proposals have been made to link the Adria pipeline with the Druzhba (Friendship) pipeline, which currently transports Russian oil westwards into Hungary. Under the new proposal, flows in the Adria pipeline would be reversed so that the port of Omisalj would begin exporting, not importing, oil. Pipeline links via Romania also have been proposed.Some analysts expect that the Adria pipeline could begin transporting roughly 100,000 bpd of Russian crude in the short term with an ultimate capacity of approximately 300,000 bpd. The South East European Line (SEEL) would transport 660,000 bpd of oil from the Romanian port of Constanta on the Black Sea to the Italian port of Trieste on the Adriatic Sea.The pipeline would be used mostly to provide oil to the countries along the route. Several alternatives exist for the route, with the southern route passing through Serbia and Croatia on the way to Slovenia and Italy. In November 2003, the Hungarian oil and gas firm MOL completed the...
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...Survey of the European Management Consultancy 2011/2012 December 2012 This report was prepared for FEACO by: Dr. József Poór Ágnes Milovecz Ágnes Király © Research Center on Management and Human Resource Management, University of Pécs, Pecs, Hungary Table of Contents Introduction by the FEACO CHAIRMAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Key Figures, 2009–2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1 Scope of the Market and Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2 Europe – Market Size, Forecast & Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2 .1 History and Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...
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...Spain Spain and its brief History Spain was first called as Iberia, name give by its inhabitants from North Africa. The name was given after the river Iber. When the Greeks arrived on the Spanish soil they called it Hesperia meaning ‘land of setting sun’ and when the Carthaginians took over the land they named it Ispana meaning ‘land of rabbits’. When the Romans arrived they named the land as Hispania and later on this became the present day Spanish name Espana. Spain was initially controlled and ruled by the Roman Empire for three hundred years. Later on a group of people called Visigoths fought with the Romans, defeated them and ruled over Spain for more than two hundred years. Spain, officially known as Kingdom of Spain is a sovereign state and a member of the European Union. Spain is located in the Iberian peninsula in Southwestern part of Europe. Spain has an area of 505992 sq kilometers, making it the 2nd largest country in Western Europe and the 5th largest in Europe. Spain is a democratic country with a parliamentary government under constitutional monarchy. It is the 13th largest economy in the world in terms of nominal GDP. According to a survey in 2012, total population in Spain is 47.27 million and its official language is Castilian Spanish (spoken by 75% of the population). Spain is located in Southwestern Europe bordering Mediterrainian Sea, North Atlantic Mountains, Southwest of France, Pyrenees Mountains and Bay of Biscay. ‘La Tomatina’...
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...situation in Moldova. 2 1.2. Establishement of EU-Moldova relations. 3 2. EC-MOLDOVA PARTERSHIP AND COOPERATION AGREEMENT 6 3. THE TRANSNISTRIAN ISSUE AS A SECURITY THREAT FOR THE EUROPEAN UNION 9 4.THE FUTURE OF EU-MOLDOVA RELATIONS 12 REFERENCES: 18 ‘’You are well aware that the values on which the EU is built-freedom,democracy,respect for human rights and fundamental freedom,and the rule of law-lie precisely at the heart o the political association and economic integration process which the Eastern Partership offers and which we are pursuing with Moldova.(…) We want to create a new reality where all the citizens of Moldova, without exclusion, can enjoy all the benefits of a modern and effective political and economic system, respectful of their fundamental right’’. President Barroso. 1.HISTORICAL AND POLITICAL ACCOUNT OF EU-MOLDOVA RELATIONS 1.1.Political situation in Moldova. 1.The independence of the Republic of Moldova, which was declared in 1991, raised a great number of crucial questions for the future of the new country- problems that had to be solved without delay. One of them was them was the orientation of its foreign policy and external allies. Moldova is literally situated on the border between East and West the countries that have chosen a ‘Euro-Asian’ way (Ukraine, Russia and Belarus) and the countries of Eastern Europe that, after the revolutions...
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...Sixth Edition INTERNATIONAL FINANCIAL MANAGEMENT Cheol S. Eun Bruce G. Resnick International Financial Management Sixth Edition The McGraw-Hill/Irwin Series in Finance, Insurance, and Real Estate Stephen A. Ross Franco Modigliani Professor of Finance and Economics Sloan School of Management Massachusetts Institute of Technology Consulting Editor FINANCIAL MANAGEMENT Adair Excel Applications for Corporate Finance First Edition Block, Hirt, and Danielsen Foundations of Financial Management Fourteenth Edition Brealey, Myers, and Allen Principles of Corporate Finance Tenth Edition Brealey, Myers, and Allen Principles of Corporate Finance, Concise Second Edition Brealey, Myers, and Marcus Fundamentals of Corporate Finance Sixth Edition Brooks FinGame Online 5.0 Bruner Case Studies in Finance: Managing for Corporate Value Creation Sixth Edition Chew The New Corporate Finance: Where Theory Meets Practice Third Edition Cornett, Adair, and Nofsinger Finance: Applications and Theory First Edition Cornett, Adair, and Nofsinger Finance: M Book First Edition DeMello Cases in Finance Second Edition Grinblatt (editor) Stephen A. Ross, Mentor: Influence through Generations Grinblatt and Titman Financial Markets and Corporate Strategy Second Edition Higgins Analysis for Financial Management Ninth Edition Kellison Theory of Interest Third Edition Kester, Ruback, and Tufano Case Problems in Finance Twelfth Edition Ross, Westerfield, and Jaffe Corporate Finance Ninth Edition...
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...é The Effects of Mandatory IFRS Adoption in the EU: A Review of Empirical Research October 2014 Information for Better Markets An initiative from the ICAEW Financial Reporting Faculty The Effects of Mandatory IFRS Adoption in the EU: A Review of Empirical Research forms part of the Information for Better Markets thought leadership programme of ICAEW’s Financial Reporting Faculty. ICAEW operates under a Royal Charter, working in the public interest. As a world leading professional accountancy body, ICAEW provides leadership and practical support to over 142,000 members in more than 160 countries, working with governments, regulators and industry to ensure the highest standards are maintained. The ICAEW Financial Reporting Faculty provides its members with practical assistance and support with IFRS, UK GAAP and other aspects of business reporting. It also comments on business reporting issues on behalf of ICAEW to standard setters and regulators. Its Information for Better Markets thought leadership programme subjects key questions in business reporting to careful and impartial analysis so as to help achieve practical solutions to complex problems. The programme focuses on three key themes: disclosure, measurement and regulation. We welcome comments and enquiries on this report and on the other aspects of the Information for Better Markets programme. To contact us, please email bettermarkets@icaew.com. © ICAEW 2014 All rights reserved. If you want...
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...Public Disclosure Authorized WPS6107 Policy Research Working Paper 6107 Public Disclosure Authorized Financial Literacy around the World An Overview of the Evidence with Practical Suggestions for the Way Forward Lisa Xu Bilal Zia Public Disclosure Authorized Public Disclosure Authorized The World Bank Development Research Group Finance and Private Sector Development Team June 2012 Policy Research Working Paper 6107 Abstract Financial literacy programs are fast becoming a key ingredient in financial policy reform worldwide. Yet, what is financial literacy exactly and what do we know of its effectiveness? This paper collects insights from the literature thus far and summarizes global evidence on financial literacy, its correlates, and existing and upcoming causal investigations. The authors conclude with a synthesis of policy advice and practical suggestions for the way forward in this fast growing area of research. This paper is a product of the Finance and Private Sector Development Team, Development Research Group. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The author may be contacted at bzia@worldbank.org. The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development...
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...1.Brief Background of Turkey Turkey, officially the Republic of Turkey is a contiguous coasttocoast country, located mostly on Anatolia Western Asia, and on East Thrace in Southeastern Europe. Turkey's location at the crossroads of Europe and Asia makes it a country of significant geostrategic importance. Turkey's largely freemarket economy is increasingly driven by its industry and service sectors, although it traditional agriculture sector still accounts for about 25% of employment. Oil began to flow through th BakuTbilisiCeyhan pipeline in May 2006, marking a major milestone that will bring up to 1 million barrels per day from the Caspian to market. Tourism in Turkey has experienced rapid growth in the last twenty years, an makes up an important part of the economy. 2. PESTE Factors 2.1 Political (P) Stability of Government Turkey’s current government (Justice and Development Party), Turkish Adalet ve Kalkınma Partisi (AKP), als called AK Party or Turkish AK Parti, political party that came to power in Turkey in the general elections of 2002 Prime minister of the party is Recep Tayyip Erdoğan since 2002. In the most recent election, Turkey's 17th general election was held on 12 June 2011 to elect 550 new members of Grand National Assembly. Justice and Development Party garnered 21,399,082 votes, which was almost half of the total votes and ...
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