The Performance, Banking Risks and their Regulation

The aim of this article is to present the theoretical support of the concepts of risk and profitability and the recent measures which had been taken to regulate them on the background of the recent economic crisis. Risks and performance are interrelated, and a better definition of these concepts constitute the basis of risk management. The analysis of banks performance should be carried out in terms of efficiency, productivity, competitiveness and profitability. The recent economic and financial instability have led central banks and other competent authorities to become more concerned with understanding the vulnerabilities of banking systems.