| Summary: | Banks play an important role in the financial sector, in the proper functioning of economic entities and in the economy as a whole, therefore over time the establishment of a functioning banking system capable of delivering a wide range of products and services to meet the requirements of all potential customers has been a permanent concern. Considering the economic and financial reality, both internationally and domestically, each country and therefore, Romania is interested in creating a solid banking system, enabling the appropriate organizational framework in order to ensure a development of the financial mechanisms. The banking system as the basic element of the financial system, allows an efficient allocation of resources in the economy and, in order to function properly, we need to know the risks they face:a slow economic growth may cause losses due to difficulties in repaying bank loans, due to lower sales or lower wages, changes in asset prices may cause financial losses to investors, decreasing a sector of the economy which has monopolized the banks’ and investors’ attention.
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