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The impact of the absorption of European funds in Romania, in the context of financial stability, is a complex subject, approached with the aim of balancing the associated benefits and risks. Absorption of funds contributes to economic growth, infrastructure development and job creation, supporting the private sector and innovation. However, administrative difficulties and the need to comply with EU rules pose risks. Transparent and efficient management is essential to prevent corruption. Overall, absorption of EU funds can strengthen national budgets and reduce regional disparities. It is crucial that Romania adapts to European requirements and manages funds responsibly to maximize the positive impact on the country's financial stability. The overall objective is to analyze the impact of these funds on economic growth, infrastructure, and the reduction of regional disparities. The aim of the research is to assess how the absorption of European funds influences financial stability in the context of compliance with EU standards and to propose directions for efficient and transparent management. [ABSTRACT FROM AUTHOR]

The article explores which financial instruments have the highest potential to deliver the transition to a low-carbon economy in Romania, given the structure of the national economy. Based on a Scopus comprehensive query resulting in 364 analysed articles on green and sustainable finance in Romania, the paper fills a research gap by looking not only at stakeholders' perception of this emerging field in Romania or by describing different kinds of green financial instruments, but by analysing which instruments are most likely to have the highest leverage and impact to mobilize finance towards decarbonizing the local economy. The banking sector in Romania accounts for 75% of total financial system assets, total net assets in the Romanian banking sector amounting to approx. 140 bio. EUR and dwarfing the Stock Exchange, bonds, European Structural and Investment Funds, etc. While green bonds have seen double digit growths, green loans and other banking instruments (debt denial, etc.) have the highest potential to decarbonize the national economy most effectively. [ABSTRACT FROM AUTHOR]

The climate change and sustainable development issues have increasingly become a subject of global concern in the last decades and even more due to the impact of the Covid-19 pandemic. Therefore, the concept of sustainable finance has gained lately more substance and features. The main objective of this research is to conceptually analyse the character and importance of sustainable finance as required nowadays for a green recovery after the latest major health, environmental, financial, economic, and social Covid-19 crisis and for the transition to a sustainable economy, in the particular case of European Union. The methodology is based on the literature, own outcomes, analysis and synthesis, in order to reveal some of the most important factors for the development of a new paradigm of sustainable finance as well as the objectives and principles of development. The first part is dedicated to the scientific and theoretical background, while in the second part of the paper body it is analysed the sustainable financial system of the European Union. Although the foundation blocks have been stated and there are already successful sustainable investments in green projects (as in Romania e.g.) conclusions suggest that this is only the beginning of a new era of the sustainable financial framework, enabling the EU economy to transform and recover while taking in consideration the ESG criteria and especially the climate neutrality goals. [ABSTRACT FROM AUTHOR]

The European Green Deal has re-ignited the imperative of green finance that is called to support the European Union transition to a greener economy. Green finance becomes even more opportune in the context of the economic recovery after the COVID-19 pandemic. The aim of the paper is to explore green banking practices in the Romanian banking system. The investigation reveals the efforts of banks to be environmentally friendly and to be involved in financing of some green projects, such as the energy efficient projects. Nevertheless, the green banking products are still in the emerging stage and banks in Romania should develop their role in the field, by diversifying the range of green products and services, improving the expertise to assess green projects or intensifying the marketing initiatives to promote green products. In order to encourage banks in Romania to provide green financing several incentives should be conceived; similar to banks, the borrowers seeking green projects should be rewarded. Some mandatory requirements for banks to be involved in green investments may promote green banking in Romania. An essential condition to achieve the development of green banking in Romania is to increase awareness towards environmentally friendly behaviour at all levels. [ABSTRACT FROM AUTHOR]