TRENDS RELATED TO THE POST-CRISIS EVOLUTION OF NON-PERFORMING LOANS IN EUROPEAN UNION AND ROMANIA

The evolution and the level of non performing loans' rate constitutes an element of assessing the health of the banking system of a country. Reducing the volume of these loans represents a major focus for both commercial banks and for any Central Bank. The profitability of the banking sector is closely linked to the level and rate of growth of such loans, which constitute prerequisites for increasing the profitability of banks' assets and reducing the costs and/or losses. The level of non-performing loans may vary, depending on several factors such as macroeconomic stability, the number of competitors on the market, the size of commercial banks, fixed level of provisions, the type of loans (secured or unsecured), and the market value of securities. This paper aims to provide an analysis of the non performing loans' evolution at the level of the European Union and Romania, as well as by highlighting some of the causes that led to this development in the context of the most recent economic and financial crisis.