RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

Matrix-based model for promoting the ethics principles in romanian banking industry 301
SW = the specific weight assigned to every criterion [Quantity (counting 13)/quality (counting
5)]
Cr1,…,Cr5 = the value of the obtained rating criterion.
After applying the calculation formula based on the Matrix model, the result of the rating
equation (RE) that was obtained is compared with the values in the Table no. 4 and indicates,
with a probability of 95% – calculated by VaR method – that, a lending institution that
will invest on the Romanian banking market has reasonable chances to succeed in falling in
the A or B performance criteria. Speaking of C and D performance criteria, here the risk is
substantial, while in the E category, the risk is unavoidable.
Table 4: Results Evaluation
The rating equation
evaluated by applying MATRIX
The overall performance of the bank, on a yet
unapproached market
1,00-1,75 A
1,76-2,50 B
2,51-3,40 C
3,41-4,20 D
4,21-5,00 E
Rating example as calculated by MATRIX, based on the values marked with X in the Table
no. 3:
0.08*1+0.09*2+0.09*5+0.03*4+0.06*3+0.06*2+0.1*2+0.07*3+0.01*3+0.05*2+0.05*2+
+0.05*2+0.01*1+0.02*1+0.07*1+0.02*2+0.09*1+0.05*3=0.08+0.18+0.45+0.12+0.18+
+0.12+0.2+0.21+0.03+0.10+0.10=1.77
As we can observe, the A and B categories are for investments, meaning that a bank may
invest in opening a new branch in a market where it has never functioned before, without facing
a significant risk to fail or to be without etics standards. All the other rating categories are
not recommended, thus being possible or even probable that, this newcomer will induce economic
and even ethical hazardous elements within the economic system of the host country.
Conclusions
This paper outlook may be used for highlighting and eventually solve a macroeconomic
paradigm, for recognizing a good and appropriate environment for administrating the banking
investments, for overcoming the difficulties and for improving the corporate social responsibility
in the banking governance. And more than everything it’s about trust. There exist
researchers’ findings that indicate a low level of youths’trust in Romanian banks (Andrei,
Zait, & Vatamanescu, 2015, p. 25). The reason of lack of trust it derives mostly from consumer
doubt regarding banks’ intentions to develop win-win relationships with their clients.
Using the proposed Matrix, the banking supervision authorities could solve at least the lack
of trust issue. Another plus of the current paper is the construction of a new calculation model
that coherently combines the quantitative criteria, evaluated on a scale from 1 to 5, whereas
1 is the best rate and 5 the poorest, with other criterias that, traditionally were not quantified.