The Macro Economic Drivers of Non-Performing Loans (NPL)
Evidence from Selected Countries with Heterogeneous Panel Analysis
Bibliographic Data
| ID | 21776346 |
|---|---|
| Authors | Fatih Ayhan (0000-0002-7447-5506, Borsa Istanbul (Turkey)), Mustafa Tevfik Kartal (0000-0001-8038-8241, Borsa Istanbul (Turkey), corresponding author) |
| Year | 2021 |
| Volume | 10 |
| Issue | 2 |
| Pages | 986-999 |
| Publication date | 2021-04-19 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | MANAS Sosyal Araştırmalar Dergisi (JOURNAL) |
| Journal identifiers | ISSN: 1694-7215 |
| Publisher | MANAS Sosyal Arastirmalar Dergisi (PUBLISHER) |
| DOI | 10.33206/mjss.800648 |
| OpenAlex | W3153169561 |
| Language | EN |
| References cited | 37 |
NPL could be treated as a critical issue in the financial systems of countries of which have bank-based infrastructures since NPL restrict the credit providing capacity of banks. Hence, necessary financing sources for economic growth and development could not be provided. In this context, the study aims to research the drivers of NPL in selected 23 countries. 4 independent drivers and yearly data between 2006 and 2018 are analyzed by using heterogeneous panel analysis. The empirical findings reveal that (i) credits, gross domestic products (GDP), and savings have statistically significant negative effect whereas foreign exchange rates (FER) have a statistically insignificant positive effect on NPL for the overall panel; (ii) 1% increase in credits reduces NPL by approximately 2%; (iii); FER have statistically significant effects in some countries at the country base; (iv) negative coefficients for credits, savings, and GDP are consistent in both overall panel and country base
Business · Econometrics · Economics · Financial system · Foreign exchange · Geography · International economics · Loan · Macro · Macroeconomics · Monetary economics · Non-performing loan · Panel analysis · Panel data · Real gross domestic product · Banking stability, regulation, efficiency · Energy, Environment, Economic Growth · Housing Market and Economics
Econometric Analysis of Panel Data
Estimating long-run relationships from dynamic heterogeneous panels
Efficient Inference in a Random Coefficient Regression Model
A Lagrange Multiplier test for cross-sectional dependence in a fixed effects panel data model
General Diagnostic Tests for Cross Section Dependence in Panels
The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics
Testing slope homogeneity in large panels
A simple panel unit root test in the presence of cross‐section dependence
Estimation of Short-Run and Long-Run Elasticities of Energy Demand From Panel Data Using Shrinkage Estimators
| Citation velocity | historical |
|---|---|
| Highly cited | No |