Determinants of credit growth to nonfinancial companies in B&amp;H

Alihodžić, Almir; Plakalović, Novo

doi:10.5937/industrija44-10309

Cited by 5 publications

(8 citation statements)

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“…the increase of credit activities might positively impact the quality of loan portfolio of a banking sector. This result ws confirmed in empiric bibliography, and it was also reached by Boudriga, Taktak & Jellouli (2009) and Ganic (2014) i Alihodžić & Plakanović (2016).…”

Section: Source: Authors' Researchsupporting

confidence: 68%

Macroeconomic and specific banking determinants of nonperforming loans in Bosnia and Herzegovina

Agić¹,

Jeremić²

2018

Industrija

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The aim of the research is to identify the macroeconomic and specific banking factors affecting the rate of nonperforming loans in the banking sector of Bosnia and Herzegovina (BiH). The authors assume that the three macroeconomic and five specific banking factors influence the quality of the loan portfolio. Aggregate data were used, which are taken from the Central Bank of BiH, Agency for Statistics of BiH and Labour and Employment Agency of BiH, and analyzed by descriptive statistics, correlation and regression analysis in the period from the first quarter of 2006 to the end of the fourth quarter of 2016. The empirical results show that there is a correlation between nonperforming loans and unemployment rate, inflation rates measured by the growth rate of consumer prices, return on assets and credit growth rates, while the impact of the growth rate of real gross domestic product, capital adequacy ratio, return on equity and active interest rates is not statistically significant.

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Section: Source: Authors' Researchsupporting

confidence: 68%

Macroeconomic and specific banking determinants of nonperforming loans in Bosnia and Herzegovina

Agić¹,

Jeremić²

2018

Industrija

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“…A high inflation rate will exacerbate economic slowdown, as evidenced by the Asian crisis in 1998. The field has studied inflation as a variable that affects the lending (Akani & Onyema, 2017;Alihodzic & Plakalovic, 2016;Lee, 2016).…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…They found that credit to the private sector positively relates to the nonperforming loan ratio, total deposits, and interbank and inflation rates. Alihodzic & Plakalovic (2016) showed that operating costs, the consumer price index, real GDP growth, deposit interest rate, interest rate, deposit growth rate, and non-performing loans are independent variables, while the loans growth rate can be used as the dependent variable.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Loan disbursement by financial services institutions: Determinants in Asia

Johan

Sari²

2023

manaj. pemasar. jasa.

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The economy of a country cannot be separated from the financing in the economic ecosystem of the nation. On the opposite, overly excessive funding will cause the economy of a country to become overheated. An overheated economy can harm the country's overall system. This research analyzes the variables that determine the distribution of financing by the financial services industry to private sectors. This research studies five variables as independent variables and private credit disbursement as the dependent variable. The independent variables are inflation interest rate, exchange rate, gross domestic product, and gross domestic product per capita. This research investigates the 31-year historical data collected from 11 countries in Asia. This study uses a balanced panel data model and E-views to process the data. The data is obtained from the World Bank website. This research concludes that inflation, gross domestic product, and exchange rate to United State Dollar have a significant influence on the distribution of private credit. Moreover, the gross domestic product per capita and interest rate does not influence the private credit distribution.

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“…In general, the dynamics of credit growth throughout the period applied almost equally to the private sector of the company (Alihodžić, & Plakalović, 2016, Alihodžić, 2018 and to citizens. At the same time, the pronounced dynamics of lending sometimes led to the entry into a moral hazard and, in the end, to the collapse of several banks in B&H (Plakalović & Alihodžić 2015, Krunić, 2014.…”

Section: Dynamics Of Consumer Credit Growthmentioning

confidence: 99%

The structure of consumer loans, their beneficiaries and motivations for borrowing from banks in the Republic of Srpska

Vojinović¹,

Plakalović²

2021

BH Ekonomski forum

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In the research, we started from the fact that consumer loans are the most common type of credits offered by the commercial banking sector to the public of Bosnia and Herzegovina (B&H). The initial goal of the research was to look at the current structure of loans taken by citizens from banks (loan size, loan maturity, use goal, etc.) and to look at the structure of credit users in terms of their educational, income and age status. We started from the assumption that citizens or households use bank consumer credits predominantly to finance current consumption and compensate for insufficient current income to finance basic living needs. We made such assumptions based on the fact of low general income per capita, low average wages and high unemployment rates in B&H. The research is based on a comprehensive survey that we conducted on a large number of participants, users of bank consumer loans. We concluded: relatively most of the credit beneficiaries are from the category of educated and highly educated citizens and the relatively largest number of beneficiaries are those with low-income status and young people. The loans used are mostly non-purpose cash credits. Longer loan maturities are reserved mainly for middle aged and older people with higher income status. Long-term loans were mostly used to finance the purchase and construction of apartments and houses. Average loan amounts per user are relatively low, which is to be expected given their income position. The motives, life requirements and expectations of the borrower usually move within a modest radius of providing basic living needs therefore, loans are mostly aimed at financing current consumption. For some users, there is a noticeable preference for higher consumption that goes beyond the actual borrowing potential of these households.

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Determinants of credit growth to nonfinancial companies in B&H

Abstract: Non-financial sector in B&H and the companies due to lack of its own funds for sustainable growth rely on financing its operations through bank loans. The dominant share of lending to banks in B&H is

Cited by 5 publications

References 1 publication

Macroeconomic and specific banking determinants of nonperforming loans in Bosnia and Herzegovina

Macroeconomic and specific banking determinants of nonperforming loans in Bosnia and Herzegovina

Loan disbursement by financial services institutions: Determinants in Asia

The structure of consumer loans, their beneficiaries and motivations for borrowing from banks in the Republic of Srpska

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