Financial Stability Assessment for EU Candidate Countries and Potential Candidates

Comunale, Mariarosaria; Geis, André; Gkrintzalis, Ioannis; Moder, Isabella; Polgár, Éva Katalin; Savelin, Li

doi:10.2139/ssrn.3454510

Cited by 5 publications

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“…However, due to growing uncertainty and revenue losses, the annual growth of loans to the private sector has slowed in most countries mentioned above. Financial intermediation in the economies of the Western Balkans is relatively moderate, with private sector loan ratios to GDP [3].…”

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The Impact of Macroeconomic Factors on Non-performing Loans in the Western Balkans

Gashi

Tafa²,

Bajrami³

2022

Emerg Sci J

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This paper analyzes the relationship of macroeconomic factors to the level of non-performing loans (NPLs) using the econometric models GMM, the Fixed Effect model, and the Random Effect model. This study aims to identify macroeconomic factors at the level of non-performing loans in the Western Balkans, measure their impact on non-performing loans, and thus fill the gap that exists between macroeconomic factors (consisting of economic growth) and those with more impact on NPLs. The methodology used to carry out this research was desk research. We used World Bank data from 2000–2019, processed with STATA software. Results show that macroeconomic factors have an impact on non-performing loans. It also proves that even when interacting with other variables, the level of bad debt has not been completely eliminated, despite economic growth in many countries. Third, throughout the study period, fixed effects estimates show that variables are not significant in a static context. According to the findings, the annual rates of GDP growth, final government consumption, the real interest rate, gross domestic savings, and the unemployment rate all have a favorable impact on NPLs. This research contributes to a deeper understanding of the relationship between macroeconomic factors and non-performing loans in the Western Balkans. Based on this, to help reduce loan risk and bad debt by the proper criteria, we propose a series of policy implications. These implications aim to improve the efficiency of banks in particular and the banking system as a whole. Doi: 10.28991/ESJ-2022-06-05-08 Full Text: PDF

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The Impact of Macroeconomic Factors on Non-performing Loans in the Western Balkans

Gashi

Tafa²,

Bajrami³

2022

Emerg Sci J

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Monetary and Fiscal Policy Response During COVID-19 Crisis in Bosnia and Herzegovina: Constraints and Potentials

Kreso

Lazović-Pita

Duraković

2021

Macroeconomic Responses to the COVID-19 Pandemic

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The contribution of bank intermediation to economic growth: Empirical evidence from CESEE countries

Miftari

2023

JGR

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The financial system is the crucial supporter of economic growth, as it is said to be the “blood” of economic activities. Many studies reveal the role and importance of the financial system in promoting economic development by raising growth through the accumulation and utilization of savings for productive investments (Levine, 2005). However, some studies highlight a negative or non-significant relationship which may differ depending on the sample of countries and the applied methodology, proxy of financial development, time period, etc. Based on the relevance of the topic and on the ongoing debate, the aim of this study is to explore the nexus and contribution of banking intermediation in the economic growth of some Central Eastern and South-Eastern European (CESEE) countries for the period 2010–2020. We use regression methods, ordinary least squares (OLS), and a fixed effect model to investigate the relationship between economic growth and bank intermediation. We measure the development of banking intermediation using banks’ credit to the private sector, credit to government and state-owned enterprises. The research results show that credits provided by banks do not affect economic growth and are in fact negatively related to economic growth, whereas the return on equity is positively related to economic growth.

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Financial Stability Assessment for EU Candidate Countries and Potential Candidates

Cited by 5 publications

References 0 publications

The Impact of Macroeconomic Factors on Non-performing Loans in the Western Balkans

The Impact of Macroeconomic Factors on Non-performing Loans in the Western Balkans

Monetary and Fiscal Policy Response During COVID-19 Crisis in Bosnia and Herzegovina: Constraints and Potentials

The contribution of bank intermediation to economic growth: Empirical evidence from CESEE countries

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