Financial indicators for credit institutions in Romania
The attached document presents data regarding different financial indicators of 20 credit institutions in Romania, for the period of 2018-2021. Where the value ”99” can be seen, it means that the specific data couldn't be found in the financial statements of the analyzed credit institutions. The currency of the indicators is thousands lei, the national currency of Romania. The aim of collecting this data was to identify the impact of the IFRS 9 provisions regarding the matters of assets' evaluation methods and the expected credit loss adjustments on the performance of the credit institutions in an emerging economy. Therefore, along with some financial indicators collected manually from the selected credit institutions, some performance indicators were taken into account that were calculated on the basis of the former: ROA, ROE, Return of Main Activity (Income / Expenditures), and Loans Granted / Deposits Attracted. Based on the data presented and after the econometric processing, we have confirmed that the valuation of financial instruments at fair value leads to an increase in their profitability (implicit in the ROA indicator), generating related earnings which, however, only in the category of those resulted from valuation at fair value through profit and loss account (PLA) have a positive impact on the financial sustainability of credit institutions, given the possibility of their immediate recognition in the financial result of the year, which is not possible in the case of earnings from financial assets valued through other comprehensive income (OCI), which can be measured as deferred income until the derecognition of the valued asset. Regarding the adjustments for expected credit losses, it was found that they have a negative impact on the financial position and performance of credit institutions in Romania, fact that creates some instability in the short term but reduces the possibility of materializing significant and sudden losses in the long term.