Constantin Anghelache

General Methods of Management the Credit Risk

This risks related to the lending activity is one of the most important risks that a financial-banking institution should manage. The improper or ineffective management of this kind of risks can have significant financial effect for the respective institution. Therefore, the top management has a very important role to ensure the credit risk management framework that comply both with the shareholders’ expectation and also fulfil the regulatory requirement imposed by the supervisory authorities. This means need to establish proper systems, norms/procedures, and qualified staff that can assure the adequate management of the specific Credit risks. In this paper we intended to present an overview of the main elements related to the administration of credit risks that the management of financial-banking institutions should take into account. We took into account the common sources of the major credit related problems, the phases of the credit risk management, the general methods used by most of the banks in the monitoring of the credit portfolio and finally we included also strategical considerations that should be contemplated by the top management in order to properly manage the credit risk and to avoid as much as possible unexpected/unwanted situations.

Aggregates in Real Expression and Price Indices by Deflation

In this article, the authors have proposed to briefly present theoretically how macroeconomic aggregates can be expressed in real expression. It also shows that price indices are the basis for deflation. Deflation is the process by which an aggregate is converted into monetary expression, from current prices into real prices. In the simplest way, transformation is an arithmetic operation of dividing the nominal aggregate into a price index corresponding to the analyzed period. The simplicity of expression has the complexity of how aggregates turn into real expression indicators. Actual expression indicators ensure the possibility of comparability at the level of a state in time when data are brought to the same common denominator by reference to the price index of a base period in that comparison. In other words, the central problem of deflation refers to the construction of a price index to ensure the transformation of an aggregate expressed in nominal prices, aggregated in real prices, in order to determine the level and especially the way in which that indicator was recalculated. In other words, mathematically we express the computational relations so as to arrive at aggregates expressed in real prices or in comparable real values. The deflation of a nominal aggregate with a physical structure implies the transformation of the aggregate primarily into its structural elements so as to ensure comparability in the study both globally and in the structure of macroeconomic output indicators (GDP) elements. We know that gross domestic product can be analyzed structurally according to several criteria from the point of view of sources used, use of gross domestic product, ownership forms, investment/consumption ratio, or wider structure of sectors Contributed to the achievement of the indicators. Therefore, before ensuring any such comparability, there is the question of expressing aggregates in prices or realistically comparable values.

Some Significant Macroeconomic Evolutions at the End of 2016

In this paper, the authors describe the core evolution of Romania’s national economy. The main indicator taken into consideration is the Gross Domestic Product and the analysis is focused on the overall evolution of this measure, the dynamics as influenced by the categories of resources, the impact of the utilization categories, the formation of GDP depending on ownership forms – public and private. Other aspects evaluated are the direct foreign investments (as measure of the attractiveness of the Romanian economy), the indices of production in industry and agriculture (as measures of the performance of the industry and agriculture sectors), the investments in constructions (emphasized as one of the factor of economic growth before 2008) and the production of services (the services are an important factor of the Romanian economy.

Data Warehouse Software Used in the Decisional Process on the Capital Market

Capital market provides strong opportunities for investors who know how to adopt favorable decision in real time. The decision to invest on the capital market involves deep knowledge on the mechanisms and characteristics of this market, the factors that determine the consequences of investment decisions and the performance of allocated capital. As the data volume related to the capital market evolution reaches a sizable amount, we consider appropriate to propose a multidimensional data structure that would be able to assist the investor in analyzing the shares in which he would like to invest. This structure could be designed by using an accessible support system, as the dimensional model proposed is valid for any DSS based on OLAP.