RISKS’ INFLUENCE ON THE ROMANIAN BANKS’ FINANCIAL PERFORMANCE

Abstract

The banking sector is highly volatile due to the influence of a large objective and subjective factors and the banking institutions must defend onself against all the risks. Therefore, risk awareness should be intuitive, while the decisions on risks by the banking management must be proactive, not passive and careless. The role of credit in the economy is represented by economic results achieved by the expression of the credit relationships and the contribution that it has in achieving the objectives of economic country policy. This paper aims the benefits of the risk management implemention into the lending activity of banks in Romania to increase the efficiency by the lending activity of the Romanian banking to improve the banks’ performance of our country.