FEATURES OF THE CAPITAL MARKET’S EVOLUTION IN ROMANIA IN THE CONTEXT OF THE TURBULENCES PRODUCED BY THE FINANCIAL CRISIS

Abstract

The international financial markets, through the ampleness and speed with which evolve, are in an unprecedented process of change. Through their functioning, the stock markets have always been characterized by a high sensitivity degree to the changes that take place at investors’ level, on the developments and perspectives of the real economy and of the financial system.

The international economy is in a continuous reorganization and transition process, with impact on all nations, these being under the necessity of adapting to the rapid changes that occur worldwide. This restructuring process is led by two dynamic and independent forces: the enhancement of the world’s economy globalization process and the emergence and development of the regional economic arrangements.

Even if in 2007, through its membership to the European Union the local capital market benefited from substantial funds inflows, the signs of the global financial crisis initiated in the United States became obvious, 2008 being one of the most difficult years.

Due to improper risk management, to the rating agencies’ failures in risk assessment, to inappropriate application of the regulation and control, the existing regulatory and supervisory framework failed to prevent the crisis’ occurence.

In the context of globalization and integration into the unique capital market of the European Union, we achieved a blueprint of the internal capital market, in order to identify the main issues that it faces, as well as its developments and perspectives.