Abstract:

This paper aims to present the importance of the transition to IFRS of credit institutions in Romania. The financial statements are intended to provide users the information they need to have an overview of the financial position and performance of a credit institution.

The financial crisis, which emerged in the banking sector, a highly regulated sector, has forced the realization and implementation of a harmonized international framework, namely the introduction of new requirements under the BASEL III Agreement.

Securitization of credit institutions' assets is highlighted by the potential further deterioration in the value of assets managed by credit institutions in Eastern Europe, unless financial innovation regulations are applied. Deterioration in the quality of bank assets and the potential financing problems may affect the economic growth and stability of the financial and banking sector.

In order to increase their performance, credit institutions are looking for an effective management, maintaining a positive public image and a reputation in order to provide credibility to their clients.