THE PERFORMANCE AND RISKS OF PRIVATE PENSION FUNDS - IMPLICATIONS FOR FINANCIAL STABILITY

Despite the difficulties due to the economic and financial crisis, the private pension funds continued to record a strong growth worldwide and they are to return to the pre-crisis levels. Although the last year’s economic and financial indicators have shown signs of economic recovery, the prospects for future developments remain uncertain. In addition, the financial markets are increasingly fed with derivative products which are designed to protect the pension funds against the risks associated with these investments. Thus, the implications of the private pension funds for the stability of the financial system are more and more important. In Romania, the decrease in the economic activity has limited the growth of the revenue from the private pension contributions. Private pension funds have not encountered additional problems in the management of financial cash flows and they do not represent a threat to the domestic financial system of Romania