Factors that increase credit risk of Azerbaijani banks
Bibliographic Data
| ID | 13023286 |
|---|---|
| Authors | Shahriyar Mukhtarov (0000-0001-6248-6120, Khazar University, corresponding author), Sema Yüksel (0000-0002-9858-1266, Azerbaijan State University of Economics), Serhat Yüksel (0009-0007-3837-5982), Elvin Mammadov (Khazar University) |
| Year | 2018 |
| Volume | 11 |
| Issue | 2 |
| Pages | 63-75 |
| Publication date | 2018-06-30 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | JOURNAL OF INTERNATIONAL STUDIES (JOURNAL) |
| Journal identifiers | ISSN: 2071-8330 • E-ISSN: 2306-3483 |
| Publisher | Centre of Sociological Research, NGO (PUBLISHER) |
| DOI | 10.14254/2071-8330.2018/11-2/5 |
| OpenAlex | W2836973894 |
| Language | EN |
| Citations received | 1 |
| References cited | 2 |
The main purpose of this paper is to analyze the influencing factors behind credit risks in Azerbaijani banks. Within this scope, we analyzed 10 biggest banks of Azerbaijan with respect to their asset size. Furthermore, 10 explanatory variables were used to achieve this objective. Annual data for the period between 2010 and 2015 was tested using the panel logit methodology. According to the results of our analysis, it was defined that 4 independent variables affect credit risk of Azerbaijani banks. It was also determined that decrease in the capital adequacy ratio, interest rate and total assets leads to increasing credit risk. We have also identified that there is a positive relationship between unemployment rate and the credit risk of Azerbaijani banks. Therefore, it can be stated that Azerbaijani banks should increase their capital adequacy ratio and total assets amount in order to minimize the negative effects from the credit risk problem
Business · Credit risk · Financial system · Banking stability, regulation, efficiency · Insurance and Financial Risk Management · Russia and Soviet political economy · Finance
| Citations per year | 0.2 |
|---|---|
| Citation span | 2021 - 2021 (1) |
| Highly cited | No |