LOAN-PORTFOLIO QUALITY AND MANAGERIAL EFFICIENCY IN BANKING

Imola Drigă, University of Petroşani
Codruţa Dura, University of Petroşani

ABSTRACT: As poor management of loans of loans has often been the main cause of bank losses
and failures in this area, this paper aims to make a parallel between the quality of loans from bank
portfolios and the financial performance of banks. The study is divided into three parts. Thus, the
first part refers to trends in the evolution of the quality of loans within EU countries, while the
second half continues with an in-depth examination of the situation of non-performing loans in the
Romanian banking system. The last part of the paper presents aspects regarding the performance
of the Romanian banking system and performs a comparative study on the performance obtained
in recent years by leaders of the Romanian banking market.

KEY WORDS: financial crisis, the quality of loans, non-performing loans, banking profitability, bank
management.

JEL CODES: G21, G32, E44, F30