Corporate Governance and Bank Performance in the Romanian Banking Sector

The present study examines how, in the period 2004-2011, the regulatory framework for minimum capital requirements, the loan classification and provisioning for specific credit risk, the liquidity and the insurance of deposits and specifi c indicators of banking influenced the bank's performance and the degree of banking development. Mainly, the results indicate that the influence on bank performance is different from that on bank development and the need for more stringent requirements in terms of equity and the establishment of provisions related to the debtors probability of default in order to limit the risk and to improve financial performance.