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The influence of the realization of economic value determined by the cost of equity capital and borrowed capital is in the permanent attention of shareholders and all participants in the financial exercise of an enterprise. Shareholders are directly interested in the value creation mechanism as the remuneration they expect for the capital invested and the risk assumed. The strategic object of increasing the performance of the organization and implicitly of the newly created value satisfies the immediate interest of the managers and of the other employees, constituting the guarantee of maintaining the jobs. Salary packages often also include clauses regarding obtaining a remuneration from the company's profit or participating in its share capital. At the level of the national economy, value creation means the efficient use of the national economic potential and on this basis the increase of the gross domestic product that contributes to the increase of social welfare

The developments in recent years in Romania regarding price stability, sound public finances, exchange rate stability and the convergence of long-term interest rates have significantly influenced the process of switching to the euro. The convergence criteria to be met by each state wishing to switch to the euro ensure that that state is prepared to adopt the euro and that its accession to the euro area will not cause economic risks for either the Member State or the euro area. ensemble. According to the latest Official Report of the European Union in 2020, Romania does not meet the criteria for joining the euro area. In the current economic situation, strongly influenced by the pandemic, it is obvious that for Romania, the concomitant fulfillment of the Maastricht criteria is more and more difficult to fulfill. The commitments made by the Romanian state to the European Commission, together with the approval of the National Recovery and Resilience Plan, do not guarantee Romania's economic success. In this paper, through an empirical research, we performed an adequate analysis on the EU requirements that Romania must meet in order to meet the commitments made and to achieve the criteria of nominal and real convergence in order to be part of the euro area.

Analyzing this problem of increasing or decreasing the public debt in Romania we have found that there are many debates between the contemporary economists regarding the economic development in this way. Most of the work is summed up at the very low level of budgetary revenues collected in recent years and the steady increase of budget expenditures. Public debt was and is well below the 60% of GDP ceiling set by the Maastricht Treaty. But there is a trend of economic thinking that advocates raising public debt, but which can be found in productive investments conducive to job creation and GDP growth. Our study shows that although we have quite large economic growth, however, in Romania, the lowest budget revenues in Europe are registered, due to a rise in public debt, both calculated as a percentage of GDP. This state of the economy may be the result of an asymmetry in Romania's European integration policy, the need to meet the nominal convergence criteria and the real convergence indicators that are so important to enter the eurozone. On the background of statistical data, through heuristic research, we set out to find out how best it is to roll out year on year increasing public debt for the sustainable development of the economy, or to reduce public debt in order not to leave a burden too to the future generations and to find other ways of development.

The interbank foreign exchange market is the market on which the exchange rate between the national currency and other currencies is determined by the volume and amount of transactions. The exchange rate that is formed on this market is displayed on a business day by the central bank. In the present paper we presented an evolution of the interbank foreign exchange market based on the banking legislation in the field and from the data taken from the National Bank of Romania statistics in the period January 2005 - January 2019. The evolution of foreign exchange transactions on the interbank market as well as the exchange rate of the main currencies. Through an empirical research we noticed the impact of the exchange rate on imports and exports of goods and services.

Money is created by the central bank, credit institutions and sometimes the public treasury. Claims on the economy - is the foundation of monetary creation. By putting in circulation payment instruments that have the quality of credit, money intermediaries create currency and distribute purchasing power. Money creation influenced by interbank lending is ongoing, and ROBOR increases or decreases interest rates by encouraging or discouraging loans. Through this study we highlight how monetary creation is developing, as well as the main factors that influence ROBOR. Due to the influence of the national authority to lower the monetary policy rate, lending to the economy was encouraged. And the mix of government policies has driven the demand for money from the economy while also influencing the growth of money supply. Thus, monetary creation is influenced by the policy of increasing or decreasing interest rates on money-market sources. The higher the need for money between credit institutions, the higher the average interest rate, so the ROBOR automatically increases, and the price of the banking products increases. Based on periodic statistical reporting, a trans disciplinary approach, we intend to observe how much money creation has changed in recent years under the supervision of the national supervisory authority of the banking system. Monetary policy interest influences the lending activity of credit institutions and is also correlated with the evolution of prices in the economy.

In order to achieve the objectives and measures set out in the consolidation and completion of the Economic and Monetary Union, a strong European banking system is needed to avoid a possible financial crisis. The progress made and the promotions of the smooth operation of payment systems are the main task of the ESCB. In the same direction, the European System of Central Banks promotes scientific and technical progress for holding and administering the official foreign exchange reserves of the Member States as well as for the safe conduct of the foreign exchange operations of the beneficiaries and, in particular, for defining and implementing the monetary policy of the European Union. In an effective and stable economic and monetary union, an integrated financial system operating on a common platform and well-defined, standardized rules is required. Progress in SEPA on risk mitigation and sharing in the banking sector was possible through the measures adopted for the development of TARGET and the implementation of TARGET2 aimed to enhancing the reliability of the settlement of the operations of the European Central Bank and of all EU credit institutions.

The creation of the Single Euro Payments Area is in full swing and the completion of the Economic and Monetary Union is the moment of consolidation, of preparing the conditions in all Member States to enable them to cope with the global financial challenges and prosper. The markets for small value payments in euro within the European Union have been very fragmented. There was a need for a project (SEPA) with a major impact on national payment markets in order to unify and standardize them in a single domestic market. Trans-European Automated Realtime Gross Settlement Express Transfer System (TARGET) is a trans-European automated real-time gross settlement system - which meets the needs of consumers by offering services at a harmonized level in the European Union. Now, however, the banking clientele needs some education about banking operations taking place at the level of the European banking system. The initial project was proposed and promoted by the European Central Bank together with the European Commission and supported by the central banks of the European Union. However, the implementation and continued development of the SEPA-Single Euro Payments Area process is the responsibility of the financial institutions, and the final beneficiaries are indisputably the individuals and legal entities that represent their "clientele". The Eurosystem has cooperated with national central banks to implement standards that facilitate the rapid automation of payment systems by offering TAREGET 2-Securities (T2S) banking clients.

The monetary policy rate is besides a monetary instrument and a monetary policy measure of the central banks. Communication of decisions on the level of official monetary policy rates targets the stability of prices. The confluence between the macroeconomic indicators and the monetary policy rate is the place where the monetary policy measures meet with the main indicators that reflect the state of the economy over a certain period of time. In this paper I will present a reflection on the situation of the main indicators: GDP, inflation and unemployment, as well as the monetary policy rate imposed by the central banks. As a method of research we used the analysis of the mechanism of transmission of monetary policy decisions at the confluence with the main macroeconomic indicators.

Customer confidence in a bank is given and the amount of capital you subscribe shareholders and increases depending on the strategy of each institution. From customer relationships are a series of risks that can be amortized especially through adequate capital. Investments entrepreneurs made using credit institutions are central to economic development and represents mainly the purchase of plant and equipment, structures, machinery and inventory, for the development of production and services. Risks assumed by banks in this relationship are strengthened by capital requirements recommended by the Basel Committee. Subscribed capital increase recorded since the establishment under European regulations and directives.

In this paper we propose to study the supply of credit to non-bank financial institutions (NFIs). The analysis we have assumed that the credit market alongside credit institutions are and NFIs. They represent an alternative to those who want a quick funding. The studies starts with a presentation of the National Bank of Romania regulations on work done by non-bank financial institutions, and continue to analyze the loans value given by the NFIs entered in the register of the National Bank from March 2008-June 2016.

Principles of "Keynes Plan" which led to the establishment of the World Bank are more current than ever, if we look at the forms of financial support given poor regions around the world. Practical projects financed by loans to poor countries are analyzed on the basis of conditions to ensure a balance of payments balances. The guarantee granted by IBRD and IDA credit is provided by the state budgets that will record deficits and controlled within limits by maintaining full employment of labor. By self-financing obtained from financial market World Bank Group has full autonomy to provide funding for projects that contribute to the general welfare of mankind. Funding analyzed in this article highlights that essentially, in particular, the World Bank Group has granted financial assistance, technical assistance and advice to emerging countries in Africa, South Asia, East Asia and Pacific, without putting emphasis on the poor. Through the study done we wanted to reiterate the volume of loans granted by World Bank in 2012-2016 to world countries which are in difficulty in reconstruction and development to improve their living standards. From the beginning, the World Bank has proposed funding over underdeveloped regions, for a world free of poverty.

Economy and civil society has gone through an unprecedented financial crisis determined by an acute shortage of financial education among the large community of individuals and legal persons. Thus, the low level of economic and financial knowledge from society contributed to the amplification of economic crisis. In 2008, in the midst of financial crisis in the European Union was created Expert Group on Financial Education (EGFE), aimed at supporting a new financial education order. Breaking the vicious circle of banks debt and sovereign one, improvement of supervision European banking system, solving the financial problems of some banks through the mechanism of bank resolution, without recourse to public resources, strengthening the trust of potential customers in the financial market, in the first process of finalizing the Union European banking, can be achieved and by a new order of financial education

From strategic documents of European governance results a series of measures that will be implemented in three stages set until 2025. This is the target that is expected the finalizations of Economic and Monetary Union. The measures established are based on economic and monetary legislation well integrated for Member States. For consolidation, EMU has a central bank, a common currency and new measures on convergence, economic growth, employment and fiscal union. The resources for strengthening economic and monetary union within the EU will certainly come also from emerging countries of Europe. Now that the world powers are trying to build a new world economic and social order, development directions and the consolidation plans of economic and monetary union of EU will be completed only with all European countries. This study not follows an exhaustive examination of all factors of consolidation of the EMU, but highlights further steps on financial stability.

Knowing the criteria for joining the euro zone is carried out by informing with an adequate economic education. This education must help those interested to know the economic situation of a European nation. Through economic education are transmitted informations that enrich people's minds by various interpretations. Economic knowledge are difficult to replicate because the process of validation depends on certain skills gained only through economic education. Any new knowledge of nominal and real convergence criteria, contributes on the appropriate interpretation to the economic condition for sustainable development of Romania. In this regard we intend to present in this study, briefly, what is Romania status regarding the criteria for joining the eurozone.

Financial stability of Romanian banking system is determined by the constant supervision of credit institutions significant risks. Accession of Romania to Union Banking requires the signing of a linked protocol between the central bank and European Central Bank regarding prudential supervision to ensure financial stability. This means that from the next year, the central bank will impose a new supervision of credit institutions in our country. And especially to those credit institutions that do not fall under European supervisors, according to the procedures of the ECB. Through this study we propose to specify the main elements of management of significant risks to ensure financial stability.

In Romania, with the liberalization of the land market, appears the prospect of functioning of aspecialized agricultural bank which might be named ,,land bank’’. In principle, this institution can buy and sellagricultural land and to provide priority "rural land loan" for farm development. Mainly, it may incorporate anadvantageous loan system created for those who want to buy land for agriculture use, once of the liberalizationof land market since 2014. In this article we present some details about importance of this credit institution andgrant technique of rural land loan . Currently, the number of Romanian farmers grouped in associations is verysmall compared to the millions agricultural holdings. Young farm development can be possible only byappealing to an "engine" type "rural land loans" and which may more quickly solve their financial problems.

Labor force mobility is an increasingly important component of contemporary society and equally adjustment tool imbalances in labor markets. The phenomenon of labor mobility is nowadays the most dynamic form of movement of potentially active population. Using cluster analysis this paper aims to highlight the relationship between economic and regional development of counties and the phenomenon of internal labor mobility. Labor mobility is both an explanatory factor of economic development and its effect or result, based on the natural desire of individuals to increase income and improve quality of life by changing jobs, which could contribute to GDP growth and economic growth.

Based on the concept that the banking system is the engine of economic development, the paper is intended as a blueprint for the banking system in Romania since 1989, stages and parts of its reorganizing process. In the article is also carried out an analysis of the Romanian banking system in terms of numerical development banks and through the two indicators considered fundamental in the banking system: market share, expressed in terms of net balance sheet asset, that social / endowment capital and are presented the conclusions that have been drawn from this analysis.

In the market economy the efficient management of production costs becomes the hottest action direction of the organization due to the requirements and demands of socio-economic. The itinerary of the economic entity is required to some extent so the possibilities for financing current activity through access to working capital becoming more expensive, and the existence of an increasingly complex legal framework, focused on accountability factors decision in order to protect the environment. Cost savings resulting from the allocation of a quota must be party to mining communities support programs both in terms of improving local infrastructure and in terms of access to utilities at various training programs and entrepreneurship.

In order to monitor lending operations, implicitly leading to an increase in money supply, and all financial and non-financial transactions, non-bank financial institutions allow empowered personnel of National Bank of Romania to examine their records, accounts and transactions, providing to this end all the documents and information concerning the management, internal control and operations of non-bank financial institutions, as will be required. Registered non-bank financial institutions carrying out monetary activities are legal persons reporting to the Credit Risk Control of National Bank of Romania, in compliance with the field regulations issued by the above mentioned bank.

Financial stability appears more and more often in discussions of money and capital market analysis, the financial banking system and financial education in Eastern EU countries. The uncertainty hanging over the national economy due to the war on the eastern border, as well as the increase in the total debt of the country as a result of the state budget imbalances influenced by the increases in budget expenditures, the energy crisis, poor financial education and the increase in the inflation rate are only part of the causes. which periodically creates problems for the monetary authority regarding the financial stability of Romania. Financial stability and price stability are two sides of the same coin. We must always consider both sides. In this sense, the statistical information provided by the banking financial system has an important role in the analysis of financial stability and price stability. [ABSTRACT FROM AUTHOR]

The budget deficit that is reflected as a percentage of the Gross Domestic Product (GDP) that is calculated as the difference between a state's expenditures and revenues is covered by various financial sources. But in this health crisis, the contraction of the budget deficit depends largely on the return of the national economy to normal. In order to recover the economy affected by the pandemic, it is necessary to encourage foreign investment and especially the absorption of European funds. Controlling the budget deficit depends on public sources of funding, which during the pandemic were directed to the payment of salaries, pensions and facilities provided to vital sectors of the national economy. In the first phase of the analysis of the use of money from European funds, in the severely economic sectors affected by the health crisis, cannot change the fate of a budget deficit because these sources appear on both sides of a budget, both in terms of revenues and expenditures. But now, at the end of 2020 and the beginning of 2021, in the midst of pandemic, we must insist on this issue because the statement is only partially justified. The issue of the use of European funds must not only be nuanced, but especially in the current circumstances, of the "European Recovery and Resilience Plan" emergence, analysis of the situation of public budgets it changes radically. According to statistical data, Romania's budgetary situation was and is very tense, which is also reflected by Romania's singular placement in the excessive deficit procedure (EDP) of the European Commission (EC) at the beginning of the year. Macroeconomic imbalances - the current account deficit (4.6% of GDP) and the relatively large structural budget deficit (over 4% of GDP) and the persistence of high budgetary pressures to increase permanent spending call for immediate macroeconomic correction to maintain access to market financing and to maintain the country rating. [ABSTRACT FROM AUTHOR]

The health crisis caused by the pandemic has brought to the fore the role that monetary policy plays in avoiding the complications of a possible economic crisis generated by the lack of economic activity. During the coronavirus pandemic, the Romanian banking system operated in normal parameters of liquidity and solvency, above European averages. Through its position in the banking system and in the economic life of a country in general, the central bank seeks to achieve objectives set by the legislative forum, the only one to which it is formally subordinated. The task of the central bank formulated as an objective refers to keeping inflation under control, ensuring and regulating the amount of money in circulation and interest rates, preventing bank failures, ensuring liquidity for both the banking system and banking operators, and achieving increases sustainable economic development. A key task of the central bank is the development and implementation of monetary policy. Defining monetary policy during the coronavirus pandemic, it can be seen that it is represented by the monetary measures taken by the state and the central bank to achieve the balance between the money supply and the money needs of the economy, or to influence in a certain way economic situation. In this context, at the level of the entire Romanian financial-banking system there was at the beginning of the state of emergency a surplus of liquidity, but the preference for liquidity specific to periods of crisis caused some temporary blockages, these being well managed by financing budget expenditures and the economy. as well as increases in interest rates on the money market. Due to the monetary policy of the National Bank of Romania, liquidity flows were significantly optimized, including due to bilateral operations performed by the NBR, the financing of state expenditures was carried out without syncope, and interest rates were considerably reduced. [ABSTRACT FROM AUTHOR]

Financial assets that are mainly represented by loans or similar investments are produced and controlled by credit institutions. These, together with the services, can contribute to a sustainable economic development, sometimes under conditions of risk and uncertainty. Among the financial assets existing on the market, credit can be a strategic pillar for the development of Romania's economy in a healthy economic environment. However, in an economic environment perceived as having a high risk determined by different internal factors, the financial intermediation offered by the credit institutions can be negatively influenced. The size of the bad loans and the estimation of the risks for adjusting the loans according to their categories, determines the credit institutions to find the best models of risk assessment. IFRS 9 introduces a new approach regarding the classification of financial assets, determined by the business conditions of the credit institutions, that is how a bank manages, under financial risk conditions, to generate the cash flows. In this paradigm, the contractual cash flows from the banking business representing exclusively payments of the principal and of the interest related to the value of the principal due, eliminates the categories of classification of the financial assets stipulated in IAS 39. and their proper adjustment. The research methods used in this study are: observation, grouping and comparison. [ABSTRACT FROM AUTHOR]

The research is particularly useful to the management of the company as it has an appropriate tool in evaluating a multicriterial investment project. The multicriterial approach structures and combines the various assessments that are considered in the decision-making process for selecting the optimal variant of several possible alternatives, the treatment applied to each of them conditional on the choice of the final decision. The opportunity to choose this approach in the efficient selection of the most feasible alternative within an investment project is an undeniable premise of organizational development, given the existence of a competitive market which is continuous dynamic. [ABSTRACT FROM AUTHOR]

Education for sustainable development, involves training honest, active, social and creative persons for ensuring the link between environment, society, economy and politics. Trained entrepreneurs in sustainable development, are the engine system which can bring an economic prosperity. Lack of entrepreneurial education in the last 25 years has led accentuated conditions to avoiding economic development in all reference fields where added value can be achieved. Running away from excessive taxation led to the establishment of vicious circles in the economy. Vicious circles of the economy can be found in saving, tax policy, productive investment and the informal economy. Through this study will present the importance of entrepreneurship education in the real economy and some specifications to exit entrepreneurs from vicious circles of the economy. [ABSTRACT FROM AUTHOR]

Joint Committee of the European Supervisory Authorities required Member States to implement new macro-prudential indicators.through national authorities of prudential supervision will be perform activities concerning the supplementary supervision of credit institutions, insurance companies or reinsurance companies, investment services firms and investment management firms, from a financial conglomerate. The most popular ways that give stability to the financial system are related to normal functioning of markets, to ensure implementation of payments in the economy and especially achieving a quality financial intermediation. Activities concerning macroprudential supervision concern, first of all, of managerial strengthening of internal control, assessment and management of risks. [ABSTRACT FROM AUTHOR]

Applying a uniform monetary policy by all European Union member states also require harmonization of monetary policy instruments and national interbank market integration also. Monetary policy instruments used by NBR (National Bank of Romania) have evolved over time as a result of alignment with the instruments used by the European Central Bank. Money market operations in Romania have appeared for the first time in 1997. Starting from the wishing of Central Bank to reduce excess liquidity in 2001 they became the most important monetary policy tool used by the National Bank of Rumania. Open market operations are the instrument of monetary policy, central banking in Eastern Europe to work towards monetary contraction or expansion. Open-market operations in recent years have become the most important monetary policy instrument they play an essential role in promoting monetary policy by the central bank. Through open marketing operations the monetary authorities aim to alter bank reserves and thereby influence the amount of currency in circulation. In Romania, the open marketing operations are initiated by the National Bank of Romania, which determines what type of tools will be used while setting terms and conditions of the implementation. Through the use and control of monetary policy instruments, the central bank as the state bank seeks managing liquidity in the economy. [ABSTRACT FROM AUTHOR]

Contractual relationships between individuals and credit institutions are increasingly lower in the sphere of lending activity. Implementation of the new Civil Procedure Code starting with February, 2013, strengthened even more consumer protection which has disturbed some commercial banks. Trust between banks and customers is an essential requirement for developing banking businesses. As a result of occurrence of new legislation is necessary to know the main elements that strengthen bank-client contractual relationship. [ABSTRACT FROM AUTHOR]