Reactions Versus Perceptions Within the Romanian Banking Sector in Times of Crisis and Reorganization

Abstract

Our paper contributes to the literature on the Romanian banking sector by analyzing a particular credit institution, namely the Cluj Napoca regional corporate business center of BCR Erste Bank Romania. Our choice is motivated by the fact that the Cluj Napoca regional center represents the pilot used by Erste Bank in testing all structural changes, new technologies and management and risk strategies. The analysis being developed focuses on the restructuration process taking place due to BCR’s merger with Erste Group, in what was considered to be one of the most spectacular takeovers in Central and Eastern Europe, therefore forming BCR Erste. The analyzed period also involves financial crisis circumstances. Considering the changes taking place within both the internal and external environment of the bank we oriented our analysis towards the bank’s clients. More precisely, we tested if, under the considered circumstances, we could find a connection between the bank’s clients’ reaction to the events taking place and their perception upon the same phenomenon. Regression models are used in developing the analysis. The results of the study come to prove the existence of a medium intensity relationship between clients’ perception on the two considered phenomenon and their reaction. Such results are justified if we think that on one hand the restructuration contributed towards positive effects while on the other we have negative effects due to the financial crisis. Our study has the obvious limitation of only approaching one case study. The analysis performed on BCR Erste’s case could also be extended to other banks. Conclusions therefore being reached and the potential effects of this type of research could be directly beneficial for the local, regional and/or national economic environment. The information aimed to be obtained is in line with the bank’s policy of orientation towards its clients. Besides analyzing clients’ perception, our analysis also considers its connection to their reaction. Since clients’ behavior is always in the center of management’s attention, dimensioning this connection bears significant practical implications. The distinctive element of the study is given by the analyzed period representing for the chosen bank both its restructuration process and the period when the financial crisis peaked in its manifestation.