Open AccessPosted Content
Non-Performing Loans in CESEE: Determinants and Impact on Macroeconomic Performance
TLDR
In this article, the authors investigated the non-performing loans in Central, Eastern and South-Eastern Europe (CESEE) in the period of 1998-2011 and found that the level of NPLs can be attributed to both macroeconomic conditions and banks specific factors, though the latter set of factors was found to have a relatively low explanatory power.Abstract:
The paper investigates the non-performing loans (NPLs) in Central, Eastern and South-Eastern Europe (CESEE) in the period of 1998–2011. The paper finds that the level of NPLs can be attributed to both macroeconomic conditions and banks’ specific factors, though the latter set of factors was found to have a relatively low explanatory power. The examination of the feedback effects broadly confirms the strong macro-financial linkages in the region. While NPLs were found to respond to macroeconomic conditions, such as GDP growth, unemployment, and inflation, the analysis also indicates that there are strong feedback effects from the banking system to the real economy, thus suggesting that the high NPLs that many CESEE countries currently face adversely affect the pace economic recovery.read more
Citations
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Banking-industry specific and regional economic determinants of non-performing loans: Evidence from US states
TL;DR: In this article, the authors examined state-level banking industry specific as well as region economic determinants of nonperforming loans for all commercial banks and savings institutions across 50 US states and the District of Columbia for 1984-2013.
Journal ArticleDOI
The Impact of Non-performing Loans on Bank Lending Behavior: Evidence from the Italian Banking Sector
TL;DR: In this paper, the authors analyzed 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, and investigated whether cooperative and commercial banks show different behaviors.
Posted Content
A Strategy for Resolving Europe's Problem Loans
Shekhar Aiyar,Wolfgang Bergthaler,José Garrido,Anna Ilyina,Andreas Jobst,Kenneth H Kang,Dmitriy Kovtun,Yan Liu,Dermot Monaghan,Marina Moretti +9 more
TL;DR: A survey of European country authorities and banks to examine the structural obstacles that discourage banks from addressing their problem loans is presented in this article, where a three pillared strategy is advocated to remedy the situation, comprising tightened supervisory policies, insolvency reforms, and the development of distressed debt markets.
Journal ArticleDOI
Macroeconomic and Institutional Determinants of Non-performing Loans
Svetozar Tanasković,Maja Jandrić +1 more
TL;DR: In this article, a static panel model approach with the logarithm of share of NPLs to total loans as a dependent variable was used to analyse macroeconomic and institu- tional empirical determinants of growth of the NPL ratios.
Journal ArticleDOI
Bank performance and convergence during the financial crisis: Evidence from the ‘old’ European Union and Eurozone ☆
TL;DR: In this article, the authors investigate the process of banking integration in the EU15 countries and the Eurozone by testing for convergence in bank efficiency among commercial banks using a two-step approach: first, they estimate efficiency by applying an innovative methodological approach that treats banks’ non-performing loans as an undesirable output.
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