| Abstract |
The banks, as institutions that attract the saved resources for investments by mediating the relation between the savers and the investors, are essential for the proper functioning of the economy. However, for the newcomers, the entry on the Romanian banking market involves targeting the opportunities for corporate growth and achieving sustainable advantages compared to the competitors, particularly that, the entry of a newcomer on the Romanian banking market also means entering the EU banking market, as well. Based on this hypothesis, the current study proposes a perspective on the strategic options available to new entries, by analyzing the banking potential and the risks while taking into account the regulations, the local resources and the specific regional and global context. The paper takes into account the economic and social dimension of the banking business, given that, the pressure for democratization and improved living standards contributes to the emergence of new social guidelines. The analysis of past events for identifying a set of early warning indicators (namely the research method used in this paper) is only a starting point. So, we take into account the efficiency and profitability of some of the banks that went through periods of difficulty. In making the decision about if and how to enter the local banking market in Romania, the potential newcomers should analyze a large series of indicators and their evolution trends in time, this being possible with a help of a working instrument called Target Evaluating Model for avoiding the failure on a new banking market. But not only this, because the newcomers must understand the local perspectives of this market. The Romanian banking sector proved to be, over time, stable and strong enough, that was not deeply affected by the global financial crisis and even has a significant potential for growth nowadays. Nevertheless, in the current work we made a deep research upon the ratios that should have given early signs to the risk management systems in some banks that did not survive on the Romanian banking market in the past and, consequently, bankrupted. The competition among the banks is beneficial for the customers and also for the national banking system. It is equally beneficial for the regional or global competition among the national banking markets to attract the investors to the banks and to provide better services to the natives. |