A new approach of the relationship between banking crisis, financial dependence and growth in Romania

In this paper I analysed the relation between Romania’s banking system and economic system evolution in the period 2000 – 2013, through a research both theoretical and empirical. The database related to banking system is collected from monthly Reports of National Bank of Romania, while the data for economic environment is collected from Eurostat database. Banking indicators are classified into the follows categories: key prudential indicators, banking risk information, loans and commitments granted by banks, loan portfolio classification and key ratio for minimum reserves. The research period was divided into pre-crisis period – before 2008 and post-crisis period - after 2008 and up to the present. The 2008 year was used as a crossroad point because starting with this year it was visible the downturn of the economic and financial evolution in Romania’s system and also at global level. The objectives of this research are to observe the closer evolution of the banking system and economic system in Romania in the prior crisis period as well as after the crisis set in. Also, the paper identifies possible correlations and contagion effects of the selected indicators. Concluding, there are cross sectional influences between selected banking indicators and economic environment.