The Impact of Non-performing Loans on Bank Lending Behavior: Evidence from the Italian Banking Sector

By D. Cucinelli. 2015

169 citations recorded by the source corpus.

The aim of this study is to understand the bank lending behavior during financial crisis, in particular whether an increase of credit risk during this period can lead banks to reduce their lending activity. A second object is to investigate whether cooperative and commercial banks show different behaviors. The analysis is based on a sample of Italian banks (listed and no listed), an example of a country undergoing a credit crunch. The sample consists of 488 listed and unlisted Italian banks observed 2007-2013. Unlisted banks are included because they are the most numerous in the Italian banking system. Findings show a negative impact of credit risk on bank lending behavior, with regard to both credit risk measures: the nonperforming loans and the loan loss provision ratio.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/aef1659a23471a1da64a3353cb12c26688341655

How researchers see this paper

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In Accounting

1. Hakimi Abdelaziz
2. Boussaada Rim
3. Hamdi Helmi

In Economics and Econometrics

1. Hakimi Abdelaziz
2. Boussaada Rim
3. Hamdi Helmi

In Finance

1. Hakimi Abdelaziz
2. Boussaada Rim
3. Hamdi Helmi

Citations in the corpus

• The Interactional Relationships Between Credit Risk, Liquidity Risk and Bank Profitability in MENA Region (2020, background): “However, for the same European context, Cucinelli (2015) has found that there is no significant association between liquidity and probability of default in the long term.”