MEASURING THE BANKING COMPETITIVENESS. A CASE STUDY OF ROMANIA

SITEA Daria Maria, Lucian Blaga University of Sibiu

ȚÎMBALARI Carolina, Lucian Blaga University of Sibiu

Abstract:
In today s economy, the banking industry is crucial in determining the standard of living. The Romanian economy has recently shown a reliance on bank finance, with the banking industry s key goals being to strengthen customer focus, foster digital transformation, and meet consumers needs as they relate to current trends. The COVID-19 pandemic had a significant impact on the Romanian economy, forcing it to overcome new obstacles in the banking sector. Thus, in order to manage their competitiveness, banks must create a resilience strategy. According to the financial reports, the most profitable Romanian banks in 2021 are: Banca Transilvania (BT), Banca Comercială Română (BCR) and Banca Română pentru Dezvoltare (BRD). These banks have the highest profit margins, with a cumulative 3.5 billion RON, which equates to 55% of the banking profit gain. This paper s primary goals are to: (1) provide a cumulative analysis of banking competitiveness and its key driving factors; and (2) examine the three major commercial banks of Romania - BT, BCR and BRD. Regarding to the five key indicators of banking competitiveness—total assets, net profit, market share, number of branches, and employees—we aimed to conduct a quick analysis of those three largest commercial banks in Romania. These institutions have a direct impact on the whole Romanian banking industry.

Keywords: Competitiveness, Corporate Competitiveness, Romanian Banking Sector, COVID-19 Pandemic, Commercial Bank

JEL Classification: G21, E58, F30, L25, P47

Volume: 74, Issue: 2

Pages: 59 - 69

Publication date: September, 2022

DOI: 10.56043/reveco-2022-0018

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/74208sitea&timbalari.pdf

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