Main purpose

Getting to know the views of domestic credit institutions on the main systemic or potentially systemic risks to financial stability in Romania.

Methodology

The survey is conducted quarterly by the NBR, based on a questionnaire sent to the most important 12 credit institutions in the system by asset value. The mechanism of the analysis is as follows: starting from a series of risks that can be considered systemic, credit institutions are required to rank those risks according to the significance of the possible consequences for the financial system.

At the same time, credit institutions assess (i) their ability to cope with the consequences of risk materialisation and (ii) the likelihood of systemic risk. Credit institutions also have the possibility to propose risks that are, in their view, systemic. The aggregation method of banks' responses with regard to the three elements of risk (probability of occurrence, severity of impact and risk management capacity) is the weighted average, the weighting factor being the market share of assets.

Use of results