CURRENCY RISK IN THE ROMANIAN BANKING SYSTEM

SBARCEA Ioana Raluca, Lucian Blaga University of Sibiu

Abstract:
Banking activity is permanently subject to risks and the management of each of them is one of the main concerns of the banking management, alongside the concern to maintain a satisfactory profitability. One of the risks that affect the banking activity is the currency risk, which is especially present in the developing economies, as is the Romanian economy. We are currently witnessing significant fluctuations in the exchange rate that affect the economy as a whole and the banking system in particular. In this article I intended to analyze the currency risk at the level of the Romanian banking system as a whole, but also at the level of the first three banks in the system. The purpose of the analysis is to reflect the level of exposure to currency risk in Romanian banks, both individually and comparatively.

Keywords: currency risk, exchange rate, fluctuations, foreign currency position

JEL Classification: E59, G21, G29

Volume: 69, Issue: 5

Pages: 134 - 142

Publication date: December, 2017

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/69511sbarcea.pdf

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