Commercial Activity or Banking Competition?
Commercial Activity or Banking Competition?

Summary/Abstract: The study analyzes the competition on the banking market and proposes an overview of debt collection companies through the economic crisis which has profoundly affected the banking sector. Article scroll through the main features of competition on the banking market as well as the domain weaknesses that negatively influenced the banking system performance. Even if there is not a sufficiently transparent and functional legal framework and debt recovery market is not supervised enough, it is among the few markets that increase from year to year. Increasing competition from adjacent companies that compete with banks, namely, a non-banking entity, it is stimulating the banking system which will thus become more constructive. It is estimated, that in terms of customers, there will be no differentiation between the banking industry and non-banking entities that will reshape the Romanian banking system soon. Also, the study aims to highlight the existence of debt collection companies, implicitly, the specific markets, it is only a consequence of excessive, unnecessary and dangerous borrowing from previous years. Avoiding bad loans from banks, a fair competition from banks and from non-banking institutions, in the long term, it will generate a balance in the market and it will support economic growth of Romania.

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