Romania's banking system was classed in the high risk category in a Fitch rating agency report on systemic risks facing the banking sector. The Romanian banking system was downrated from a moderate risk classification to a highly risky one due to the rapid growth of credits and the high volatility of the exchange rate.
Romania was included in the third risk class, due to the macro-economic indicator which evaluates potential system risks, determined by three possible causes: rapid growth of bank credits, the artificial growth of the value of assets and/or the volatility of the exchange rate. The MacroPrudential Indicator set up by Fitch shows the vulnerability of the banking systems, from a scale from 1 to 3 where 3 represents a high risk level while 1 a low one.
Moreover, Fitch's bank systemic indicator analyzes the stability of the banking system where Romania scores a D, typical for emerging countries with small and weakly developed banking systems. Several other countries share the same place with Romania, namely Slovakia, Turkey and Kazakhstan. Romania's banking system was classed in the high risk category in a Fitch rating agency report on systemic risks facing the banking sector. The Romanian banking system was downrated from a moderate risk classification to a highly risky one due to the rapid growth of credits and the high volatility of the exchange rate.
Romania was included in the third risk class, due to the macro-economic indicator which evaluates potential system risks, determined by three possible causes: rapid growth of bank credits, the artificial growth of the value of assets and/or the volatility of the exchange rate. The MacroPrudential Indicator set up by Fitch shows the vulnerability of the banking systems, from a scale from 1 to 3 where 3 represents a high risk level while 1 a low one.
Moreover, F
