Dicevska, Snezana and Karadjova, Vera and Jolevski, Ljube (2018) THE IMPACT OF NON-PERFORMING LOANS ON HOUSEHOLDS ON THE FINANCIAL PERFORMANCE OF BANKS IN MACEDONIA1. In: INSCOSES 2018.
Full text not available from this repository.Abstract
The credit portfolio in banks with the traditional model of banking hasdominant role
in the banks’ operations and. Loan portfolio quality it is the main generator of the
banks’ results. The basic indicator for quality of the credit portfolio is the share of
non-performing loans to total credit portfolio. Very often, the NPL loans are also a
source of other risks, as liquidity risk and solvencyand increase the risk profile of
the bank.This paper investigates the influence of the non-performing ratio on
houseeholds on the financial performance ofbanking system in the Republic of
Macedonia for the period 2010-2017. The analysis presents correlation and
regression between non-performing loan ratio on housholds and profitability
indicators: rate of return on assets and rate of return on equity, as well as the capital
adequacy.The results of correlation shows a moderately high, negative correlation
between the non-performing loans ratio and rates of return on equity and return on
assets. Regression analysis shows that increasing the non-performing loans ratio has
influence to reduce the bank profitability.
KEY WORDS: non-performing loans, banks, credit portfolio, profitability,
capital adequacy
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Subjects: | Scientific Fields (Frascati) > Social Sciences > Economics and Business |
| Divisions: | Faculty of Tourism and Hospitality |
| Depositing User: | Mr Bojan Sekulovski |
| Date Deposited: | 20 Feb 2019 13:05 |
| Last Modified: | 13 May 2019 08:34 |
| URI: | https://eprints.uklo.edu.mk/id/eprint/1756 |
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