BANK ASSETS QUALITY. NON-PERFORMING LOANS IN ROMANIA

Abstract

The importance of having as a volume of non-performing loans as low as possible derives from the role and functions that banks have in the economic life of a country. That is why bank management is based on the analysis of the following indicators: Capital, Assets, Management, Earnings and Liquidity. Banking risk indicators, according to EBA: capital risks, liquidity and financing risks and environmental risks are calculated and monitored more than ever. This paper reviews the evolution of non-performing loans in the Romanian banking sector during the period 2010-2017. Empirically we identify the causes of the occurrence of non-performing loans and the concrete data to help us demonstrate the above.