The Measurement and Analysis of the Performance on Financial Situations in Credit Institutions

Abstract

This research seeks to demonstrate and analyze the usefulness of the accounting information provided by the annual financial statements for measuring and analyzing the performance of credit institutions in Romania. The objective of this research was to understand the technical and practical activities of the financial institutions of Romania. Commercial banks represent the main category of credit institutions in our country, reflected by the level of bank assets and, implicitly, the market share. The banking sector in the market economy plays a very important role, as it acts in promoting the reform and in the concrete manifestation of the mechanism of economic self-regulation, in which it is practically a basic component of the economic and financial system of a country. It is well known that in the recent years, the majority of Romanian economic entities have rather weak financial results compared to the values registered at the level of the European Union, so the analysis of the performance of the financial statements has come to a second place. The study was conducted on two banks, namely the Romanian Commercial Bank and Transilvania Bank. The study ends with the author’s conclusions regarding the measurement and analysis of the performance on the financial statements of the credit institutions in our country.