Q How would you assess the health of the banking system as well as its development in terms of sophistication of instruments being used and competition levels?
A The September 2003 IMF/World Bank report on the stability of the financial system contends that, under efficient supervision, the Romanian banking system is resilient to a range of market and credit risk shocks, enjoying a high degree of capitalisation and liquidity, as well as adequate provisioning. Although the rapid expansion of lending fuelled fears as to the risk of bank assets becoming impaired, prudential indicators remain at manageable levels.
