Risks and Management Banking

The Romania’s integration in the European Union brought about some major changes in our banking system. One of the direct consequences is the fierce competition between banks for supremacy on the market. In this respect, the Romanian banks saw in the SMEs sector a true potential for reaching their goal and they proceeded to conquer it by conceiving unique products, specially designed to reach the financial needs of this segment. Moreover, banks often come up with new attractive offers and cost reductions for the SMEs sector. In this context, some questions need to be raised: Which is the effective risk banks accept to take by providing such convenient offers?; Are there any specific risks in financing this sector? And finally, how can banks maintain a balance between risk and profit return (or market share increase)?