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Copyright of Transformations in Business & Economics is the property of Vilnius University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of our paper is to empirically investigate the impact of the changes in macroeconomic environment on the financial soundness of the banking sector (as measured by bank Z-score) in 11 Central and Eastern European countries, over the period 2000-2014. The results of our empirical study indicate that the financial soundness of the banking sector in our sample countries is heavily influenced by unemployment and inflation rates, foreign exchange rate, current account balance, public debt, and financial depth. Overall, our study underlines the crucial importance of ensuring a healthy and sound macroeconomic environment for the financial soundness of banks. Also, our research highlights that, out of all the macroeconomic factors analyzed, the dynamics of bank credit to the private sector is the main risk factor for the soundness of the banking sector in CEE countries, which calls for its rigorous monitoring. [ABSTRACT FROM AUTHOR]

Copyright of Transformations in Business & Economics is the property of Vilnius University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Within the current European economic landscape, plagued by financial, economic and national debt crises, a vivid debate has been sparked in the academic and professional environment regarding the way in which the European banking sector can contribute to the achievement of a long term sustainable economic growth. The debate is even more entailed since the financial crisis started in the banking sector and the main contagion happened through banks operating regionally and globally. Within this context, our paper aims at providing an overview of the main characteristics of the European banking sector and of the challenges that it will face in the post-crisis period. This represents a first necessary step in our opinion, for the better understanding of the way in which the European banking sector can contribute to the achievement of a long term sustainable economic growth. In order to achieve this we used a qualitative analysis combined with a series of empirical data and a series of own calculated indicators that underline some of the characteristics of the EU member states banking systems. [ABSTRACT FROM AUTHOR]

During the period previous to the crisis, most of the EU new member states from our research (especially Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Romania) have registered a fast growth of the households indebtedness, which has lead to the extension of the vulnerabilities of this sector in front of some macroeconomic shocks. In this context, our research aim to especially comparatively underline the stylised facts about the indebtedness degree of the households from the analysed countries and the main effects generated by the fast growth of the banking debts of this sector. Through the undertaken analysis in our research we aim at underling the major importance which the insurance of a sustainable household's indebtedness level has for the macroeconomic and financial stability of a country. [ABSTRACT FROM AUTHOR]

The current global crisis has had tremendous effects on the banking sectors from the new EU member countries. In this context it becomes important to analyse how the crisis has affected these banking systems and also how the monetary authorities from these countries have reacted in such an adverse situation in order to ensure the macro-stability and the relaunch of the lending process. In order to achieve this, firstly we have reviewed the academic literature on this subject, in order to avoid any overlap in our research and to ensure the originality of our undertaking. Secondly, using a quantitative approach, we have comparatively analysed the effects of the economic and financial crisis on the banking systems from our panel. [ABSTRACT FROM AUTHOR]

Our paper aims to investigate the factors that have an influence upon the profitability of Romanian commercial banks, between 2003 and 2011. The results of our study show that Romanian banks' profitability is influenced by both bank-specific factors and changes in the external environment. In the case of bank-specific factors, the results of our study reflect that bank profitability is significantly influenced by asset quality, management quality and banking liquidity. Among external factors, it turns out that banking concentration and economic growth rate have an important impact on bank profitability. [ABSTRACT FROM AUTHOR]