The implication of foreign currency lending for financial stability became one of the most important\nissues appointed to the attention of policymakers especially when global financial crises became\nevident. In Romania, the high indebtedness rate, especially in foreign currencies, is the main\nvulnerable spot of the population sector. Foreign currency lending can increase financial\nvulnerability and the risk of systemic crises in several dimensions. This is the reason for which, the\nmain objective of this paperwork is to analyze the factors that influence the customers in their\ndecision to borrow in foreign currencies. In this matter, it was used a regional econometric model\nfor panel data in order to see Romania�s customers borrowing preferences and to analyze if the\ncrises have changed their behavior.
Loading....