Abstract
In a world governed by complex financial and economic systems, knowing the process of financial intermediation becomes a must. We face times when the process of financial intermediation seems to change nearly as a natural phenomenon. Financial intermediation stakeholders find constantly new ways to interact on behalf of obtaining funds they need and returns they expect and manage risks they try to avoid. The article’s aim is to take a snapshot of a financial intermediation process that manifests in Europe Modern Era, specifically in one EU member like Romania, in contrast with other two EU member – Bulgaria and Croatia. In the same time, we also outline the relation between financial development and economic development, mostly after EU accession. In terms of Romania’s financial intermediation, we confirm that the banking sector represents the main component of financial system and that bank credit represents the most important financing channel for nonfinancial sector, denominated, mostly in national currency. Despite all that, Romania’s EU accession has led to a constant changing in financial structure, with more active nonbanking financial intermediaries.
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Notes
- 1.
After 3 years from the date when the Bucharest Stock Exchange was reopened in 1995.
- 2.
A measure of degree of competition based on profit efficiency in the banking market and is indirectly proportional to the competitive conduct of financial intermediaries (World Bank 2017).
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Appendices
Appendix 6.1
Appendix 6.2
Financial assets (million euro) | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Average of annual change rate (%) | Period change (2007–2015) (%) |
|---|---|---|---|---|---|---|---|---|---|---|---|
European Union (28 countries) | 58,811,607.0 | 59,774,830.7 | 59,034,389.7 | 63,560,605.3 | 66,728,558.3 | 69,413,742.3 | 68,772,991.9 | 75,880,006.6 | 79,753,959.3 | ||
Annual change rate (%) | 1.6378 | −1.2387 | 7.6671 | 4.9841 | 4.0240 | −0.9231 | 10.3340 | 5.1054 | 3.3107 | 35.6092 | |
Euro area (19 countries) | 44,579,202.2 | 44,510,494.7 | 45,498,048.2 | 47,698,418.2 | 49,315,014.5 | 52,088,909.8 | 52,481,689.8 | 57,836,811.8 | 61,364,785.9 | ||
Annual change rate (%) | −0.1541 | 2.2187 | 4.8362 | 3.3892 | 5.6248 | 0.7541 | 10.2038 | 6.0999 | 3.3591 | 37.6534 | |
Bulgaria | 112,867.9 | 118,385.3 | 125,159.0 | 124,177.3 | 135,270.5 | 142,587.2 | 156,722.6 | 163,326.0 | 171,872.9 | ||
Annual change rate (%) | 4.8884 | 5.7217 | −0.7844 | 8.9334 | 5.4089 | 9.9135 | 4.2134 | 5.2330 | 5.4410 | 15.7785 | |
Croatia | 153,709.4 | 150,056.1 | 156,803.2 | 164,391.2 | 165,070.2 | 165,986.5 | 171,445.8 | 177,612.6 | 185,526.7 | ||
Annual change rate 2007–2015 (%) | −2.3768 | 4.4964 | 4.8392 | 0.4130 | 0.5551 | 3.2890 | 3.5969 | 4.4558 | 2.4086 | 20.6996 | |
Annual change rate 2013–2015 (%) | 3.2890 | 3.5969 | 4.4558 | 3.7806 | 8.2130 | ||||||
Romania | 278,511.3 | 280,698.3 | 274,020.4 | 278,934.0 | 292,647.6 | 307,863.3 | 330,043.1 | 344,518.1 | 355,286.5 | ||
Annual change rate (%) | 0.7852 | −2.3790 | 1.7932 | 4.9164 | 5.1993 | 7.2044 | 4.3858 | 3.1256 | 3.1289 | 27.5663 |
Gross domestic product at market prices (million euro) | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Average of annual change rate (%) | Period change (2007–2015) (%) |
|---|---|---|---|---|---|---|---|---|---|---|---|
European Union (28 countries) | 12,966,403.5 | 13,040,309.4 | 12,292,959.4 | 12,818,381.8 | 13,192,373.8 | 13,445,756.5 | 13,554,117.0 | 14,007,869.8 | 14,720,020.2 | ||
Annual change rate (%) | 0.5700 | −5.7311 | 4.2742 | 2.9176 | 1.9207 | 0.8059 | 3.3477 | 5.0839 | 1.6486 | 13.5243 | |
Euro area (19 countries) | 9,383,907.2 | 9,619,070.2 | 9,284,155.4 | 9,546,292.9 | 9,798,991.1 | 9,832,819.8 | 9,927,596.1 | 10,140,441.0 | 10,463,656.6 | ||
Annual change rate | 2.5060 | −3.4818 | 2.8235 | 2.6471 | 0.3452 | 0.9639 | 2.1440 | 3.1874 | 1.3919 | 11.5064 | |
Bulgaria | 32,449.1 | 37,200.1 | 37,317.7 | 38,230.5 | 41,292.0 | 41,947.2 | 42,011.5 | 42,762.2 | 45,286.5 | ||
Annual change rate (%) | 14.6414 | 0.3161 | 2.4460 | 8.0080 | 1.5867 | 0.1533 | 1.7869 | 5.9031 | 4.3552 | 39.5617 | |
Croatia | 43,925.8 | 48,129.8 | 45,090.7 | 45,004.3 | 44,708.6 | 43,933.7 | 43,487.1 | 42,977.8 | 44,068.0 | ||
Annual change rate 2007–2015 (%) | 9.5707 | −6.3144 | −0.1916 | −0.6570 | −1.7332 | −1.0165 | −1.1712 | 2.5367 | 0.1279 | 0.3237 | |
Annual change rate 2013–2015 (%) | −1.0165 | −1.1712 | 2.5367 | 0.1163 | 1.3358 | ||||||
Romania | 125,403.4 | 142,396.3 | 120,409.2 | 126,746.4 | 133,305.9 | 133,511.4 | 144,253.5 | 150,357.5 | 159,963.7 | ||
Annual change rate (%) | 13.5506 | −15.4408 | 5.2631 | 5.1753 | 0.1542 | 8.0458 | 4.2314 | 6.3889 | 3.4211 | 27.5593 |
Real GDP per capita, EUR per inhabitant | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Average of annual change rate (%) | Period change (2007–2015) (%) |
|---|---|---|---|---|---|---|---|---|---|---|---|
EU (28 countries) | 26,200 | 26,200 | 25,000 | 25,500 | 25,800 | 25,600 | 25,700 | 26,000 | 26,500 | ||
Annual change rate | 0.0000 | −4.5802 | 2.0000 | 1.1765 | −0.7752 | 0.3906 | 1.1673 | 1.9231 | 0.1628 | 1.1450 | |
Euro area (19 countries) | 29,400 | 29,400 | 28,000 | 28,500 | 28,900 | 28,600 | 28,400 | 28,700 | 29,200 | ||
Annual change rate | 0.0000 | −4.7619 | 1.7857 | 1.4035 | −1.0381 | −0.6993 | 1.0563 | 1.7422 | −0.0639 | −0.6803 | |
Bulgaria | 4900 | 5200 | 5100 | 5200 | 5300 | 5300 | 5400 | 5500 | 5700 | ||
Annual change rate (%) | 6.1224 | −1.9231 | 1.9608 | 1.9231 | 0.0000 | 1.8868 | 1.8519 | 3.6364 | 1.9323 | 16.3265 | |
Croatia | 11,200 | 11,500 | 10,600 | 10,500 | 10,500 | 10,300 | 10,200 | 10,200 | 10,500 | ||
Annual change rate 2007–2015 (%) | 2.6786 | −7.8261 | −0.9434 | 0.0000 | −1.9048 | −0.9709 | 0.0000 | 2.9412 | −0.7532 | −6.2500 | |
Annual change rate 2013–2015 (%) | −0.9709 | 0.0000 | 2.9412 | 0.6568 | 2.9412 | ||||||
Romania | 6100 | 6700 | 6300 | 6300 | 6400 | 6400 | 6700 | 6900 | 7200 | ||
Annual change rate | 9.836066 | −5.97015 | 0 | 1.587302 | 0 | 4.6875 | 2.985075 | 4.347826 | 2.1842 | 18.0328 |
Appendix 6.3: Financial Access Indicators
ATMs per 100,000 adults (World Bank 2017)
Bank branches per 100,000 adults (World Bank 2017)
Saved at a financial institution in the past year (% age 15+) (World Bank 2017)
Loan from a financial institution in the past year (% age 15+) (World Bank 2017)
Firms with a checking or saving account (%) (World Bank 2017)
Firms with a bank loan or line of credit (%) (World Bank 2017)
Small firms with a bank loan or a line of credit (%) (World Bank 2017)
Number of listed companies per 1,000,000 people (World Bank 2017)
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Bratu, R. (2018). Financial Intermediation in Modern Europe Time: Evidence from Romania. In: Mărginean, S., Ogrean, C., Orăștean, R. (eds) Emerging Issues in the Global Economy. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-71876-7_6
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