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The recent economic and financial crisis has had a tremendous impact on the banking system, raising key questions about liquidity risk. Its management is seen to be of paramount importance, receiving great attention from policymakers, researchers and practitioners, taking into consideration that a liquidity shortage at a single so called “too big to fail” financial institution can lead to systemic contagion and instability. In this context, the aim of the paper is to analyse a significant issue that needs to be tackled when promoting financial stability, more exactly the determinants of the liquidity risk of a sample of banks operating in a series of CEE countries (Bulgaria, the Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania), reviewing at the same time the progresses made in certain key areas and the remaining challenges. We considered bank specific factors over the period 2004-2011 and examined them employing an OLS regression analysis. The results of our research highlighted the negative impact that the depreciation of the loans portfolio had on the overall liquidity of the analysed banks. [ABSTRACT FROM AUTHOR]

In a modern economy the banking institutions fulfil a double role, on the one hand they provide financial resources for investors while on the other hand they represent a trusted body for depositors. Liquidity risk may arise from the inability of a bank to provide liquidity as stipulated in the contracts, either to investors or depositors, this being extremely well underlined in the context of the recent global financial crisis. The ascension to full time members of the European Union of Bulgaria and Romania has had a tremendous effect on these countries banking systems, determining a series of changes both in the operating strategies and also in the market dynamics. Thus, the aim of our research is to evaluate the liquidity risk of the banks operating in Bulgaria and Romania in the context of the EU ascension process. In order to achieve this we have investigated the role and impact that a series of financial indicators for the capital adequacy, assets quality, management quality and profitability have on the liquidity risk of the banking institutions from our sample, the analysed period being 2003-2011. The obtained results underline that the capital adequacy ratio and the ratio of impaired loans to gross loans have a statistically significant impact on the liquidity risk of the banks operating in Bulgaria and Romania. [ABSTRACT FROM AUTHOR]

Abstract: The Romanian banking system has undergone through tremendous changes in the last decade, its financial soundness and performance being paramount in the achievement of a stable and sustainable economic growth. Thus, the aim of our research is to comparatively analyse the financial soundness of the commercial banks that operate in Romania. In order to achieve this we have used one of the most popular methods for the analysis of the financial soundness of banks, namely the CAMELS framework. The obtained results highlight the strengths and the vulnerabilities of the analysed banks, underlining the need to strengthen the concerns of the decision makers from banks to improve and increase their soundness. [Copyright &y& Elsevier]

Abstract: Against the background of the economic and financial crisis, public finances severely deteriorated in many EMU Member States and a new crisis, of sovereign debt, emerged. Considering ECB''s recognized responsibility for ensuring overall financial stability, our paper shortly overviews the main monetary policy measures it adopted since May 2010, proving the vital roleof ECB''s interventionin countering the effects of the sovereigndebt crisis. The added value of our work mainly results from the coherent analysis of the interconnections between sovereign crisis, banking crisis and the real sector of the economy, as determinants for ECB''s intervention, as well as from highlighting the potential risks entailed by ECB''s actions over the medium and long term. [Copyright &y& Elsevier]