THE BANKING SYSTEM IN ROMANIA IN THE CONTEXT OF THE PANDEMIC CRISIS

Abstract

In the context of the effects of the COVID 19 pandemic on the economy, the Banking Sector in Romania had to identify new solutions to reduce risks and maintain a high financial performance within a competitive environment. This article aims to present the way in which the Romanian banking system has managed possible risks (credit risk, market risk, operational risk), and to what extent the pandemic has affected the profitability of this sector. Despite the challenges encountered, the Romanian banking system proved that it resisted its effects, as a result of the fact that the responsible authorities reacted effectively by promptly implementing the economic and legislative policies adopted at national and European Union level. Another important aspect is that commercial banks have learned the lessons of the previous economic crisis, continued the lending process, and strengthened their role as the main financier of the economy, despite the uncertainty surrounding national economic stability.