THE IMPACT OF THE COVID-19 PANDEMIC ON NON-PERFORMING LOANS IN THE BANKING SECTOR

When there are indications that the borrower is likely not to repay the loan or if more than 90 days have passed without the borrower having paid the agreed instalments, these loans are considered non-performing loans. This can happen when a person loses his job and therefore cannot repay a mortgage...

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Main Authors: Diana Elena BRINZA, Mihaela Iuliana DUMITRU
Format: Article
Language:English
Published: University of Pitesti 2021-04-01
Series:Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice
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Online Access:http://economic.upit.ro/RePEc/pdf/2021_1_4.pdf
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author Diana Elena BRINZA
Mihaela Iuliana DUMITRU
author_facet Diana Elena BRINZA
Mihaela Iuliana DUMITRU
author_sort Diana Elena BRINZA
collection DOAJ
description When there are indications that the borrower is likely not to repay the loan or if more than 90 days have passed without the borrower having paid the agreed instalments, these loans are considered non-performing loans. This can happen when a person loses his job and therefore cannot repay a mortgage under the agreed conditions, or when a company is facing financial problems, which is common in the current situation. Thus, in the current conditions, an increase in the level of non-performing loans is inherent, in the absence of protection measures. In this article, there were analyzed the measures taken by the Central Banks of the European Union to mitigate the effects of the COVID-19 pandemic, the actions taken by the National Bank of Romania in this context, as well as the necessary measures to be taken further by credit institutions in order to preserve their capital and liquidity and implicitly for the management of the stock of non-performing loans.
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series Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice
spelling doaj-art-cdfeb2b33c6a49508a752442aa6afe6a2025-08-20T03:38:44ZengUniversity of PitestiBuletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice1583-18092344-49082021-04-012014552THE IMPACT OF THE COVID-19 PANDEMIC ON NON-PERFORMING LOANS IN THE BANKING SECTORDiana Elena BRINZA0Mihaela Iuliana DUMITRU1Faculty of Economics and Law, University of Pitesti, RomaniaFaculty of Economics and Law, University of Pitesti, RomaniaWhen there are indications that the borrower is likely not to repay the loan or if more than 90 days have passed without the borrower having paid the agreed instalments, these loans are considered non-performing loans. This can happen when a person loses his job and therefore cannot repay a mortgage under the agreed conditions, or when a company is facing financial problems, which is common in the current situation. Thus, in the current conditions, an increase in the level of non-performing loans is inherent, in the absence of protection measures. In this article, there were analyzed the measures taken by the Central Banks of the European Union to mitigate the effects of the COVID-19 pandemic, the actions taken by the National Bank of Romania in this context, as well as the necessary measures to be taken further by credit institutions in order to preserve their capital and liquidity and implicitly for the management of the stock of non-performing loans.http://economic.upit.ro/RePEc/pdf/2021_1_4.pdfpandemic; non-performing loanbanking sectorstabilityrisk
spellingShingle Diana Elena BRINZA
Mihaela Iuliana DUMITRU
THE IMPACT OF THE COVID-19 PANDEMIC ON NON-PERFORMING LOANS IN THE BANKING SECTOR
Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice
pandemic; non-performing loan
banking sector
stability
risk
title THE IMPACT OF THE COVID-19 PANDEMIC ON NON-PERFORMING LOANS IN THE BANKING SECTOR
title_full THE IMPACT OF THE COVID-19 PANDEMIC ON NON-PERFORMING LOANS IN THE BANKING SECTOR
title_fullStr THE IMPACT OF THE COVID-19 PANDEMIC ON NON-PERFORMING LOANS IN THE BANKING SECTOR
title_full_unstemmed THE IMPACT OF THE COVID-19 PANDEMIC ON NON-PERFORMING LOANS IN THE BANKING SECTOR
title_short THE IMPACT OF THE COVID-19 PANDEMIC ON NON-PERFORMING LOANS IN THE BANKING SECTOR
title_sort impact of the covid 19 pandemic on non performing loans in the banking sector
topic pandemic; non-performing loan
banking sector
stability
risk
url http://economic.upit.ro/RePEc/pdf/2021_1_4.pdf
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