This article analyses the role of monetary shocks in transmitting macroeconomic fluctuations across countries within a two-country framework, with a special emphasis on the case of Romania. Based on the estimation results for various specifications of the European Central Bank reaction function,...

Understanding the evolution of volatility on the financial markets is essential for the comprehension and for the analysis of risk. This paper regards the topic of persistence of volatility in the exchange rates for four Central and Eastern European countries: Czech Republic, Hungary, Poland,...

This article proposes a different point of view on the pricing in the stochastic volatility models when the underlying price is uncorrelated with its volatility. Heston (1993) established a closed-form formula of the European option price. This paper proposes a new closed-form formula of the...

The present study sheds light on important aspects of monetary integration in the European Union involving the newest member states. It assesses the degree to which they satisfy the business cycle correlation criteria. Our results demonstrate that there is a common business cycle in the Euro...

The present study tackles the banking system’s productivity in a more complex manner, that integrates multiple input, multiple output variables, abdicating from the reductionist perspective of clasical methods, which imposed limits in the number of variables, in the process of productivity...

The enhancement of convergence in the supervisory practices, both by increasing the quality of the legal framework and of the regulations in the field of financial services and by improving the consultation process, represents a prerequisite for setting up the Single Market for financial...

The recent financial crisis has proven just how expensive the process for the reestablishing of the financial stability and for restoring the public confidence in the banking system, actually is. Given its effects and the skepticism regarding the effectiveness of the supervisory systems of the...

Although there is no express requirement in the regulations of the National Bank of Romania, the design, the implementation and the use of rating systems in the management of risks related to exposures of non-banking financial institutions (NFIs) on the basis of good banking practice, is a...

The current financial crisis, through its global dimension, resulted in an intensification of efforts of specialists to find the best policies for crisis management, on the one hand, and to improve the regulatory and supervision framework, on the other hand, both essential conditions for...

The paper focuses, primarily, on assessing if risks associated to household sector havea significant impact on Romanian banking system’s soundness and stability, by establishing whichhousehold specific variables are the most important and have to be monitored. We have consideredseveral...