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This paper investigates the impact of macroeconomic factors and COVID-19 on the Romanian Stock Exchange using monthly data spanning from March 2020 to September 2022. This time frame is selected to capture the evolution of the pandemic and to consider all the major waves of infections that Romania faced. We employ the Autoregressive Distributed Lag (ARDL) - Bounds Test technique for estimation. ARDL is chosen as the econometric model due to its suitability for capturing the dynamics of both short-run and long-run relationships. Since the COVID-19 pandemic severely interrupted financial markets and the real economy globally, this analysis also includes COVID-19 related variables to observe the effect of the economic hiatus on the domestic stock market. The originality of this paper lies in its pioneering approach of incorporating both macroeconomic variables and COVID-19-related factors into the same econometric model. At the time of writing, this paper stands out as one of the few studies that comprehensively examine the impact of both macroeconomic conditions and the specific challenges posed by the COVID-19 pandemic on the Romanian Stock Exchange during various waves of infections. Results indicate that macroeconomic and COVID-19 variables have an impact on the Romanian Stock Market. In both the short run and long run, the exchange rate seems to have the most significant influence on the stock market. The research findings bear implications for policymakers, regulators, academia, and investors. [ABSTRACT FROM AUTHOR]

The management of banking assets and liabilities is one of the most important processes in a banking system, and this shows that everything must be done very clearly and very efficiently, being very large amounts and underlying this process that would not must be wrong and not allowed to lead to errors, as they could translate into significant losses for banks in the system and sometimes into insolvency, which could even lead to destabilizing the banking system in a country. Thus, it is necessary for the process of managing banking assets and liabilities to be carried out efficiently, and for the back models to be rigorously constructed. Taking into account these aspects, I tried to build several econometric models that could be used to manage assets and liabilities in the Romanian banking system. Thus, for the management of banking assets or liabilities, I consider it necessary to know which are the variables that can influence their dynamics and which are the elements that must be taken into account. I mention that the analysis will be performed at the level of the entire banking system in Romania to form an overview, the built models can be used even by decision makers in commercial banks to substantiate decisions on the management of banking assets. [ABSTRACT FROM AUTHOR]

The aim of our paper is to empirically investigate the determinants of the quality of bank loans portfolio for a panel of 29 commercial banks from two new EU Member States, namely Bulgaria and Romania, over the period 2003-2012. Our study is based on annual data coming from Bankscope Database, commercial banks' annual reports, Eurostat and World Bank's Global Financial Development Databases. The results of our study show that the dynamics of bank loans quality, expressed by the ratio of non-performing loans to total loans, is significantly influenced by both macroeconomic factors (the GDP growth rate, the unemployment rate and the inflation rate) and some bank-specific factors (the return on average total assets and the size of the bank). The added value of our study comes from providing evidence regarding the main factors that could influence the quality of bank loans portfolio in Bulgaria and Romania. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between local and global macroeconomic factors and stock market indices in Romania using the framework of the macroeconomic APT model. Many researchers have demonstrated that macroeconomic conditions affect risk factors and influence asset returns. However, it is well-known that emerging markets' asset returns are characterized by higher volatility than on developed markets. Using the stepwise analysis method we found some evidence of the effects of exchange rates, interest rates (global), gold price, global stock indices and oil prices on stock returns of the Bucharest Stock Exchange (BSE). We also investigate the effects of macroeconomic factors on the investment firm's indices, BET-FI. The results of a Vector Autoregressive model (VAR) and Vector Error Correction Model (VECM) indicate the short and long run linkages between macroeconomic variables and BSE indices. [ABSTRACT FROM AUTHOR]

Our paper aims to investigate the factors that have an influence upon the profitability of Romanian commercial banks, between 2003 and 2011. The results of our study show that Romanian banks' profitability is influenced by both bank-specific factors and changes in the external environment. In the case of bank-specific factors, the results of our study reflect that bank profitability is significantly influenced by asset quality, management quality and banking liquidity. Among external factors, it turns out that banking concentration and economic growth rate have an important impact on bank profitability. [ABSTRACT FROM AUTHOR]