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The determinants and effects of bank bailout programs on the economy and society are still controversial. Using a Propensity Score Matching approach relying on 22 European countries, it was identified economic growth, economic freedom, total banking assets, and liquid assets to deposits and short-term funding ratio as the main drivers for the decision to adopt a bank bailout program. The results show that the adoption of bank bailout programs did not lead to an improvement in the banks' solvency indicators or financial performance. Still, it has amplified financial stress and income inequality instead, hampering political stability, as well as social and economic conditions. The novelty of this research resides in adding a contribution to scarce literature covering the determinants of the decision to adopt a bank bailout program, also by comprehensively expanding the set of candidate variables that may have impacted the decision for Government intervention. [ABSTRACT FROM AUTHOR]

The aim of this paper is to assess the impact of membership on a country in EU on the ownership of its banking system. The ownership of a banking system is important for a country. A growing number of studies provide empirical evidence that well operation of financial systems accelerates long-run economic growth by allocating funds to more productive investments than poorly developed financial systems. So, the foreign ownership of banking system, if the owners are from more developed economies, through know how can influence for greater financial intermediacy and for better allocation of resources, too. Also if the owners are global systemically important financial institution they can provide financial support and can make a bank competitive advantage with cheap credit lines. The down side is that all the decisions are taken on group level and the subsidiary can be affected of strategy for deleveraging or reduced support although the driver is the economic conditions of the mother company. In order to evaluate the impact of the EU membership, this paper will compare the ownership of the banking systems in Romania and Bulgaria before and after the EU accession. Also, the analysis will include the ownership of Macedonian banking system, and having in mind the changes in the other two sample countries, will be assessed the impact of EU membership on the ownership of the banking system. [ABSTRACT FROM AUTHOR]

The global financial shock had symmetrical effects across the Eurozone: the cross-border financial flows decreased in 2008, and the investors repatriated the funds towards home markets and re-evaluated the level of their international exposure. In the banking area, large mergers and aquisitions took place before the crisis and large banking group were created. This concentration process in the banking sector continued in the crisis context, because the banks performance dropped signifiantly. The Romanian banking system was less affected by the crisis, since it was not exposed to toxic assets, as well as due to the prudential and administrative measures adopted by the National Bank of Romania. Still, for Romania, but alsofor the entire Europe, the danger didn't dissapeared. The Greek situation and the Ukrainian conflict represent a challenge for the achieved stability in the European area. [ABSTRACT FROM AUTHOR]

The Bank Recovery and Resolution Directive define a common set of rules to establish when and how the authorities should intervene to stabilize troubled banks. It establishes the principle that shareholders and creditors are the first to bear the losses of a failing bank, before authorities and taxpayers. This addresses the moral hazard, increasing the market discipline of banks and limiting the risks they are taking. The Directive introduces also the concept no creditor worse off to protect the shareholders and creditors. It is also provided a framework for orderly resolution, even for banks operating across borders. The gradual mutualisation of the resolution scheme requires political compromises that have not been achieved yet and there cannot be a banking union without a mutualisation. [ABSTRACT FROM AUTHOR]

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In time, the structures of the market and concurrency have represented the key points of the European economic and financial system. Banking competition ensures the existence of superior quality products and services for the final consumer, a higher innovation degree, smaller prices. It also allows efficient banks to enter the market or to expand to the detriment of the inefficient ones. Nevertheless, there are negative effects of competition, as well. Alan Greenspan once remarked the fact that intense banking competition could lead to a decrease in profit margins and could encourage hazardous investments, which could, in turn, generate financial instability and induce systemic risks. Therefore, there must be found a balance between ensuring banking stability and maintaining free competition. The present article is an analysis of the competition tendencies in the Romanian banking system during 2012-2013 based on the data published by NBR. [ABSTRACT FROM AUTHOR]

Sparked by the recent great recession and the role of financial markets, considerable interest exists among researchers within both the academic and public community in measuring and modeling systemic risk. This article introduces a new framework for measuring systemic risk by using a risk-adjusted balance sheet approach. In this regard, the analysis of 21 largest commercial banks operating in 7 countries from Central and Eastern Europe, shows potential risk which could threaten all the financial system. The paper concludes new directions for measuring systemic risk by using Merton model. It shows how risk management tools can be applied in new ways to measure and analyze systemic risk in European banking system. [ABSTRACT FROM AUTHOR]

One of the solutions designed to rebuild the banking system is the reconfiguration of the regulatory framework. Still active, the episodes of liquidity shortage and bank failure ask for solid measures in order to increase the solidity of individual institutions, to protect the financial stability of the banking systems and to maintain confidence on the markets. The aim of this paper is to analyze the situation of four European banking systems (Czech Republic, Poland, Romania and Croatia) in terms of Basel III standards. Structured on three parts, the study points out the real concerns regarding Basel III effectiveness; analyzes the evolutions of capital, leverage and liquidity indicators and highlights the future possible scenarios/actions for aligning to the new regulation. To conclude, we determine the white and the black spots of the selected banking systems related to Basel III implementation. The results show good levels of capital in Poland, Czech Republic, Croatia and Romania, and some liquidity issues in Poland. The Czech and the Croatian banking systems are the best prepared for shocks. [ABSTRACT FROM AUTHOR]

Abstract: Delicate and difficult at the same time, financial and monetary fields have always attracted attention of researchers worldwide. One of the challenges of contemporary capitalism, financial liberalization, is a process that can bring enormous benefit, but it can pose serious obstacles to development and economic prosperity. In this paper, we propose to analyze the impact of liberalization on bankin g system from emerging countries. The necessity to study and knowledge both the process itself and its effects on financial markets came as a result of a small number of studies and the inconclusive results regarding the impact of financial liberalization on developing countries in Central and Eastern Europe. Than rejected, financial liberalization must be accompanied by an increase in prudential policy. Too rapid liberalization in a country does not mean speed problems in an absolute sense, but in a relative sense: in many cases instability occurred because of the difference between impressive speeds of financial liberalization and very slow adjustment of the prudential provisions, banking and financial regulations, respectively monetary policy actions. [Copyright &y& Elsevier]

The article examines the financial safety functions of the European Deposit Guarantee Schemes (DGS). The safety roles of the schemes are based on the Core Principles for Effective Deposit Insurance Systems wherein a set of bank depository rules have been applied by the Basel Committee on Banking Supervision and International Association of Deposit Insurers. Europe is a diverse continent in terms of DGS resource construction, where ex-ante contributions from the banks is considered by the European Commission as an option in case of unavailable deposits.

The article sets out to describe and discuss the methodology of selected financial soundness and financial stability indicators of Europe. The first part is devoted to discussion of Financial Stability Indicators by the International Monetary Fund (IMF) and presents also the values of the IMF's core Financial Soundness Indicators for the Czech Republic and other selected countries. The second part reviews existing approaches to construct an aggregate financial stability indicator.