Credit growth is an important indicator of the financial stability within a country. We aim to investigate this issue, by analyzing the credit growth in Romania during 2000-2022. We find that Covid crisis impacts positively and significantly credit growth. We bring new insights regarding the effects of macroeconomic variables like GPD growth, inflation, and long-term external debt service on credit growth. These results remain robust when we employ several categories of credit growth (e.g. by currency, by maturity, by type of credit) as dependent variables.

The Non-performing loans ratio (NPLs) is an important indicator of the financial stability of a certain financial institution. Therefore, it is crucial to analyze the possible determinants of NPLs ratio. We aim to investigate this issue, by analyzing the NPLs ratio in Romania during 2000-2022. We find that Covid crisis impacts negatively significantly NPLs ratio due to the implementation of stringent measures to the banking sector, but also to the relief measures offered to borrowers. We bring evidence that the economic environment can impact significantly NPLs ratio. The higher level of employment implies an increase in NPLs ratio. Other macroeconomic determinants of NPLs ratio are GDP growth and inflation. Further, our results show that there are also bank determinants of NPLs ratio such us Return on Assets (ROA) and Loan to Deposit ratio. These results remain robust when we employ total NPLS 90 days and NPLs growth rate as dependent variables.

The purpose of this paper is to assess the impact of COVID-19 outbreak upon the stock prices of the banking sector in the European Union evaluating the responses of banks from different jurisdictions with different regulatory policies and tax regimes. Using an event study technique, we examine the abnormal returns across a significant number of banks. The results show a broadly negative response of the investors to the COVID-19 pandemic official announcement. However, we found significant evidence of differences between banks form distinct jurisdictions. The investors have a stronger negative reaction for the banks from non-euro area, as well as for the banks from peripheral and semiperipheral countries. From a regulatory perspective, the investors have an enhanced adverse reaction for banks in jurisdictions where the activities restrictions and supervisory powers are lower, and where capital requirements are tighter.