Determinants of non-performing loans in Central and Eastern European countries
By Bruna Škarica. 2014
260 citations recorded by the source corpus.
This paper analyses the determinants of the changes in the non-performing loan (NPL) ratio in selected European emerging markets. The model was estimated on a panel dataset using a fixed effects estimator for seven Central and Eastern European (CEE) countries between Q3:2007 and Q3:2012. The countries analyzed are Bulgaria, Croatia, Czech Republic, Hungary, Latvia, Romania and Slovakia. Although the literature on NPLs is quite extensive, this is the first empirical research on the countries of CEE region using aggregate, country-level data on problem loans. The results suggest that the primary cause of high levels of NPLs is the economic slowdown, which is evident from statistically significant and economically large coefficients on GDP, unemployment and the inflation rate.
Subfields: Accounting, Finance
View Paper: https://www.semanticscholar.org/paper/151a067db83b7f662549496e312657f54e5e9cb7
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Citations in the corpus
- Banking-industry specific and regional economic determinants of non-performing loans: Evidence from US states (2015, background): “Using GMM estimations with quarterly data from 2004 to 2012, the authors find real GDP growth and national stock price index to reduce NPLs while a nation’s exchange rate, private credit-to-GDP and past NPLs to increase present period’s NPLs. Moving toward the euro area region, Makri et al. (2014) e”
- Macroeconomic and Bank-Specific Determinants of Non-Performing Loans: Evidence from Nepalese Banking System (2018, result): “Our finding matches with the results of Salas and Saurina (2002), Messai and Jouini (2013), Fofack (2005), Jiménez and Saurina (2006), Louzis et al. (2012), Škarica (2014), and Dimitrios et al. (2016).”