Bankruptcy: The Consequence of Defective Bank Management (Falimentul: Consecinta unui Management Bancar Defectuos) (Romanian)
Economia Seria Management, Vol. 12, No. 2, 2009
18 Pages Posted: 28 Nov 2009
Abstract
Bank failure is the result of a defective management in banking leading the bank to a stage of bankruptcy, which means that the insolvent bank is going to be closed by the banking authority. In general, the banking sector is viewed as more vulnerable to contagion than other industries since banks are viewed as more susceptible to failures. Thus, the paper addresses the issue of bank insolvency as an extreme consequence of materialized risks, resulting in a payment disability for the bank. The paper presents the causes and consequences of bankruptcy and analysis the situation of bankruptcies in the Romanian banking system which was confronted with a number of bankruptcies beginning with 1994 and involving several significant financial institutions
Note: downloadable document is in Romanian
Keywords: insolvency risk, bank failures, systemic risk, bank regulation
JEL Classification: G21, G14, E58, F34
Suggested Citation: Suggested Citation
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