FEATURES OF THE ROMANIAN FINANCIAL SYSTEMÂ REGARDING THE INTEREST RATE TRANSMISSION

The monetary impulse transmission channel represented by the interest rate channel transmitting effects of the changes in the interest rate structure on investment as well as on components of the aggregated demand is a classic theme of the present economic literature. Through the investigation of the characteristics of interest rate transmission mechanism, our paper becomes important because the present financial crisis has a mainly weakening impact on the efficiency of the transmission between the inter-banking market exchange rate and the non-banking exchange rate. Our main goal in this research is to emphasize the characteristics and structure of the Romanian banking system (level of concentration), the lending activity of the economy private sector and the saving/investing behaviour of the economic agents that have a direct influence among the reaction of the interest rate flow from the inter-bank monetary market towards the interest rates for the client's lending and deposits of the Romanian banking sector. The exact acknowledgement and the understanding of factors that influence the credit institutions behaviour and the market reaction to the Central Banks decisions have serious implications in the monetary policy efficiency.