Kjosevski, Jordan and Petkovski, Mihail Non-performing loans in Baltic States: determinants and macroeconomic effects. BALTIC JOURNAL OF ECONOMICS, 17 (1). pp. 25-44.
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Abstract
This study analyses the linkages between macroeconomic and
bank-specific determinants of non-performing loans (NPLs) and
their impact on macroeconomic performance in the Baltic States
using two complementary approaches. First, we examine the
macroeconomic and bank-specific determinants of NPLs for a
panel of 27 banks from the Baltics using annual data for the
period 2005–2014. The most important macroeconomic factors
are GDP growth, inflation and domestic credit to the private
sector. As for the bank-specific determinants, we found that the
equity to total assets ratio, return on assets, the return on equity
and the growth of gross loans were of importance. Second, we
investigate the feedback between NPLs and its macroeconomic
determinants. The results suggest that the real economy responds
to NPLs and that there are strong feedback effects from
macroeconomic conditions such as domestic credit to private
sector, GDP growth, unemployment and inflation to NPLs.
| Item Type: | Article |
|---|---|
| Subjects: | Scientific Fields (Frascati) > Social Sciences > Economics and Business |
| Depositing User: | UKLO Mrezha |
| Date Deposited: | 27 May 2024 06:06 |
| Last Modified: | 27 May 2024 06:06 |
| URI: | https://eprints.uklo.edu.mk/id/eprint/9988 |
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