Suchergebnisse

This study is determined by several factors that includes: (1) increasing interest in the shadow banking system as a result of the consequences of the global financial crisis; (2) the links between the traditional banking system and the shadow banking system with regard to the impact on financial stability; (3) low interest rates on bank deposits in recent years that might drive the development of the shadow banking system and (4) the lack of extensive literature on similar studies regarding Romania. The period analyzed is 2008-2018, beginning with the year when the effects of the global financial crisis were felt in Romania and the macroeconomic conditions deteriorated. The results reveal that the shadow banking in Romania is small compared to the regular banking system that dominates the Romanian financial system. The European Union financial sector greatly impacts both the banking sector and the shadow banking system. The entities and the activities composing the shadow banking system are not complex and the links between the two financial sectors raise greater risks to shadow banking entities than to regular banks.

The novelty of this paper is the comparative analysis of the Romanian and Icelandic banking systems. The study results reveal that despite the fact that Romania and Iceland are two different worlds, there are several similarities between the banking systems of these countries. They include a late development of banking systems, foreigners contributing a great deal to the development of the banking systems in the early stage of evolution. After the Second World War until the 1990s specialized banks operated in both countries. The banking systems of both countries prior to the 1990s were dominated by politics. Liberalization of banking and capital occurred both in Romania and Iceland after 1990; the bank privatization process took place during a similar period (1999-2006, Romania; 1998-2002, Iceland). Before privatization, banks in both countries lacked experience in a new banking "arena". The global financial crisis greatly affected the two banking systems. Despite similarities, the evolution of the two banking systems was also marked by differences, notably the ownership origin of banks after privatization (foreign dominance in Romania; domestic owners in Iceland) and different business models developed by banks in the pre-crisis period.

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.