Theoretical and Applied Economics
No. 2 / 2024 (639), Summer
Performance and risk – a changing and complex relationship for banking business
Bucharest University of Economic Studies, Romania
Adina Elena CĂLIN
Bucharest University of Economic Studies, Romania
Eugen-Marian VIERESCU
Bucharest University of Economic Studies, Romania
Abstract. The paper aims to analyse the evolution of the European banking sector between two global crises. It focuses on the factors that triggered the banking transformation after 2008 and on the interrelationship between business activity and risk related indicators. The research also considers the development of the banking sector and the necessity to be permanently equipped with the proper mitigation strategies for a constantly changing risk landscape. We selected the most important European banks that, during the entire analysed period, maintained their leading positions through increased financial performance and efficient risk management. The results of the study indicate that the profitability of European banks registered a mixed evolution, depending on the indicator considered for the analysis. In terms of risk, the strategic analysis of the Basel framework indicates a link between the state of the banking sector and the prudential framework when comparing the global financial crisis with the crisis generated by the Covid-19 pandemic. To enrich the research, we considered top 10 banking organisations from Western Europe and top 10 from Central and Eastern Europe. The results of the comparative analysis between West and East indicate structural differences that emerge as a result of different ways of doing banking business. Profitability and risk maintain their key importance, as the risk landscape evolved at the same pace with the banking activity. Besides the traditional financial risks, other factors of risk have reached an importance level which question the capacity of the risk management function at the level of banking organisations to keep up in a volatile, dynamic and complex environment.
Keywords: banks, transformation, regulatory reform, risk management, profitability.
Contents
- Performance and risk – a changing
and complex relationship for banking business
Dan Costin NIȚESCU
Adina Elena CĂLIN
Eugen-Marian VIERESCU
- Westphalian order in pan-Arabism culture societies
Maria BUDEANU
- The generational divide – A debate on technology
and the decision-making process
Raluca Iuliana GEORGESCU
Dumitru Alexandru BODISLAV
- The trend of FDI inflows and its impact
on the Indian economy
Sushanta Kumar TARAI
Sudhakar PATRA
Dhananjoy DATTA
- Effects of exchange relative prices
on macroeconomic stability
in sub-Saharan African countries
Irifaar SOME
- Crowding-out, home bias and financial stability
in the aftermath of the sovereign debt crisis
Alexie ALUPOAIEI
Matei KUBINSCHI
Eugen RĂDULESCU
Alina ZAHARIA-ROTARU
- Is there convergence or divergence in per capita energy
consumption in sub-Saharan African countries?
Muhammed TIRAŞOĞLU
- Financial transformation through digitalisation:
India’s dual path of cash and cashless transaction
Nasira BANU M.
Ibrahim CHOLAKKAL
Abdul AZEEZ N.P.
- Nexus between global financial integration
and economic growth: An ARDL approach
Mohammad Omar FARUK
- Integration of ESG principles:
An initiative for transformation
from Linear Economy to Circular Economy
Shaheera Banu Z
V. VIMALA
- European funds for sustainable transport
and economic growth
Ana Maria BOCĂNEALĂ
Alexandra-Elvira GHERASIM
- What drives Tunisian economic growth:
urbanization or rural development?
Sayef BAKARI
Malek El WERIEMMI
- Impact of crypto currencies on performance of stock returns:
Evidence from BRICS countries
Sakthivel P.
Rajaswaminathan S.
- Forecasting gold price and inflation for India and US:
An analysis of ARIMA and Holt Winters models
Mukti KHETAN
Vijay KUMAR
Kalandi Charan PRADHAN
Mohd. Aziz SHAIKH
Mohd. ARSHAD
- ESG Global Score Indicator – The new sovereign rating
Case study – European Union
Ana Maria (MĂRĂȘESCU) NECULA
- Assessing the adoption of corporate social responsibility
on developing countries: Case of Jordan
Omar ALHATO
- ICT and economic growth:
Evidence from lower-middle
income countries of South Asia
Kirti SANWAL
Saba ISMAIL
- Future of cryptocurrency in India
Gaurav KUMAR
Bhartendu SINGH
Suraj Kumar SAMAL
Pandav Kumar CHAUDHARY
- The fintech frontier: Investigating fintech entrepreneurial
intentions in the light of fintech awareness
Abin JOHN
Selvaraj VANITHA
Muhammed JISHAM