Financial Illusions During Transition: Case of Romania

The Tenth International & Interdisciplinary Scientific Conference,Vanguard Scientific Instruments in Management, Ravda, Bulgaria, September 13-17, 2017

14 Pages Posted: 4 Jan 2018

See all articles by Razvan Stefanescu

Razvan Stefanescu

University Dunarea De Jos Galati

Ramona Dumitriu

University Dunarea De Jos Galati

Date Written: September 08, 2017

Abstract

Sometimes, the promoters of the financial products that promise high abnormal returns succeed in hiding the substantial risks associated. Such financial illusions have some particularities in countries that experience the transition to the market economy, where the financial systems are fragile. In this paper we approach some types of financial illusions experienced in Romania between 1990 and 2000: fraudulent banks, “mutual-aid games”, rudimentary mutual funds and popular banks. We conclude that they were favored by circumstances such as the monetary disequilibrium, the delayed privatization of the banking sector, the financial knowledge lack among the population, the financial legislation deficiencies and the political corruption.

Keywords: Financial frauds, Transition, Political corruption

JEL Classification: G41, O17, P37

Suggested Citation

Stefanescu, Razvan and Dumitriu, Ramona, Financial Illusions During Transition: Case of Romania (September 08, 2017). The Tenth International & Interdisciplinary Scientific Conference,Vanguard Scientific Instruments in Management, Ravda, Bulgaria, September 13-17, 2017 . Available at SSRN: https://ssrn.com/abstract=3094618 or http://dx.doi.org/10.2139/ssrn.3094618

Razvan Stefanescu (Contact Author)

University Dunarea De Jos Galati ( email )

Str. Domnească, nr. 47
Galati, 800008
Romania

Ramona Dumitriu

University Dunarea De Jos Galati ( email )

Romania

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
8
Abstract Views
154
PlumX Metrics