Abstract:

Paper determine efficiency of the Romanian banking sector within 2005 – 2014 using the Data Envelopment Analysis (DEA). We used panel data analysis for the most important determinants of banking efficiency. The liquidity risk, level of capitalization, riskiness of portofolio, interest rate, Return On Assets (ROA), Return on Equity (ROE) are indicators that impact the efficiency of the banking system. The results of paper are used to evaluate the Romanian banking risk and propose measures to reduce risk and improve the efficiency of the banking system.