Capital Budgeting: The Romanian Credit Analysts’ Points of View

This study aims to disclose the methods and instruments used by the creditanalysts in the most important Romanian banks regarding capital budgeting. It can be noticedthat the dominant standpoint converges to the recommendations of the main referenceworks in corporate finance. Hence, indicators like profitability index, net present value orinternal rate of return are preferred by the most part of the credit analysts. Among thetechniques of risk quantification, the sensitivity analysis is the most commonly used methodby Romanian creditors. About the discount rate used in investment valuation, the main partof the respondents recommends the rate of return for similar projects in the sector.