Non-Performing Loan Determinants and Impact of COVID-19: Case of Bosnia and Herzegovina

Žunić, Amila; Kozarić, Kemal; Dželihodžić, Emina Žunić

doi:10.2478/jcbtp-2021-0021

Cited by 28 publications

(11 citation statements)

References 28 publications

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“…First, to our knowledge, it is the first work that studies the impact of the macroeconomic environment in Italy during the recent period. Several papers have analyzed this relationship in the U.S. (Ghosh 2015), European (Makri et al 2014;Rinaldi and Sanchis-Arellano 2006), Greek (Anastasiou et al 2019;Konstantakis et al 2016;Louzis et al 2012), France and Germany (Chaibi and Ftiti 2015), India (Gaur and Mohapatra 2020;Mishra et al 2021), and other world regions (Beck et al 2015;Espinoza and Prasad 2010;Hada et al 2020;Kjosevski et al 2019;Nkusu 2011;Tanasković and Jandrić 2015;Zheng et al 2020;Žunić et al 2021) contexts. However, only Bofondi and Ropele (2011) studied the relationship between macroeconomic variables and bad loans in the Italian context from 1990 to 2010.…”

Section: Introductionmentioning

confidence: 99%

Non-Performing Loans and Macroeconomics Factors: The Italian Case

Foglia

2022

Risks

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The purpose of this work is to investigate the influence of macroeconomics determinants on non-performing loans (NPLs) in the Italian banking system over the period 2008Q3–2020Q4. We mainly contribute to the literature by being the first empirical article to study this relationship in the Italian context in the recent period, thus providing fresh evidence on the macroeconomic impact on NPLs, i.e., on the credit risk of Italian banks. By employing the Autoregressive Distributed Lag (ARDL) cointegration model, we are able to investigate the short and long-run effects of macroeconomic factors on NPLs. The empirical findings show that gross domestic product and public debt have a negative impact on NPLs. On the other hand, we find that the unemployment rate and domestic credit positively influence impaired loans. Finally, we find evidence of the “gamble for resurrection” approach, i.e., Italian banks tend to support “zombie firms”.

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Section: Introductionmentioning

confidence: 99%

Non-Performing Loans and Macroeconomics Factors: The Italian Case

Foglia

2022

Risks

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“…) although others described positive and significant link with them (Mahyoub, & Said, 2021;Beck, Piloiu, & Jakubik, 2015;Alexandri, & Santoso, 2015;Saba, Kouser, & Azeem, 2012). Furthermore, some of studies confirmed a insignificant association between GDP growth and non-performing loans (Žunić, Kozarić, & Dželihodžić, 2021;Dimitrios, Helen, & Mike, 2016;Tanasković, & Jandrić, 2015;Nor & Ahmad, 2015;Singh, Basuki, & Setiawan, 2021).…”

Section: Relationship Between Growth Of Gross Domestic Product On Nplsmentioning

confidence: 97%

“…The unemployment has the diversity of jobless comparative to the employees and dealings the amount of the workforce (Goensch, Gulyas, & Kospentaris , 2021;Huang et al, 2017). The crucial factors of NPLs nevertheless it additionally consumes a hyperlink towards the commercial enterprise and fiscal actions that have an effect on the call for of goods and offerings and in the end to enterprise ability to refund its credits (Žunić et al, 2021;Queglieriello, 2007;Singh et al, 2021).…”

Section: Impact Of Unemployment Rate On Nplsmentioning

confidence: 99%

Determinants of Non-Performing Loans (NPLs); Evidence from Banking Sector of Pakistan

Hassan

Sheikh

Rahman

2022

ASSAP

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The main aim of the current study is to theorize an inclusive assessment of the factors of non-performing loans from banking sector in the setting of Pakistan. In this connection, adequate criticism of contemporary literature is being provided in context of relevant macroeconomic indicators which might aggravate the level of Non-Performing Loans (NPLs) in the conventional commercial banks of Pakistan as well as other regions. As per the study of literature, it has been found that corruption, political stability, accountability, investment profile, credit bank to private area and energy crisis affects the NPLs of conventional banks. In addition, factors like lending interest rate, unemployment, GDP and inflation do explain the variation in NPLs of the banking sector. Political stability, lack of capital capability, lack of efficiency, nominal emphasis on NPLs and lack of efficiency are the present issues being faced by the country. On the other hand, an increase in NPLs affects the internal factors including efficiency, profitability, bank size and capital. It has also been found that NPLs surge through inaccurate decisions by the organizations and political intervention in the banking sector. As per the outcomes of the studies, it has been observed that operational productivity and effectiveness have an adverse and significant relationship with NPLs. The lawmakers should accomplish a vigorous financial state of banks through manufacturing extra revenues. In this way banks will be in a better position to explore the credit worthiness of the creditors which will be ultimately helpful for better loan management. Once the key factors for increase in NPLs are determined, the banks will establish stable and efficient policies for loan management. The purpose behind determining these internal as well as external factors is not mere to highlight their significance but to chalk out measures and directions to control the stability of banking sector and the financial structure.

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“…On the other hand, banks carry out fairly gloom throughout melancholy and reduce borrowing and upward thrust distribution for lease lifeless or bounce worrying about elevated NPLs. Several research shows poor relation among NPLs and financial progress (Lubis & Mulyana, 2021;Prastowo & Usman, 2021;Mohaddes, Raissi, & Weber, 2017).Even though some researchers defined nice or widespread hyperlink between n them (Beck, Jakubik, & Piloiu, 2015;Alexandri & Santoso, 2015).However, few research showed a irrelevant affiliation among GDP increase and non-acting loans (Žunić et al, 2021;Dimitrios, Helen, & Mike, 2016;Nor, 2015;Singh et al, 2021). The end results, it briefs little deliverables boom of GDP decline capital redirection or borrowers' credit paying capacity on identical time as, equally better GDP motives towards upward thrust in NPLs.…”

Section: Impact Of Gdp On Nplsmentioning

confidence: 99%

Macroeconomic Factor Affecting Non-Performing Loans (NPLs): Evidence from Commercial Bank in Pakistan Based ARDL Cointegration Approach

Ghaffar

Baig

Ali

2023

ASSAP

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The main objective of this study is to measure the NPLS in Pakistan’s commercial bank. The macroeconomic factor of Country GDP, corruption, unemployment, political instability and inflation it’s nettle the level of NPLS in commercial bank in Pakistan. The unemployment, increasing of interest rate, low economic growth and money laundering they elaborate the changing in NPLS. high inflation, unemployment ratio, huge cases of corruption, political instability are faced by the country.we are working time series data of Pakistan from 1972 to 2022 by using ARDL long and short run. We find that there is long run relationship exist between the variables, and co-integration also have positive and significant impact on NPLS.Finding The observation of this study shows that efficiency of managing the productivity had important effects on NPLS. The policy maker should be establishing the steps for creditors to ensure superb loan management and they will grant to the banks. If the better steps for loan will be establish then the bank will be stable and so their works efficiently. The Finding shows that GDP has positive/negative and significant impact on NPLS of commercial banking in Pakistan in long run/ short run. However, corruption has positive/negative and insignificant impact on NPLs in long run/ short run, we also find that inflation has negative and significant impact on NPLs in long run/short run, we also observed that interest rate has negative and significant impact on NPLs in long run/short run.

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Non-Performing Loan Determinants and Impact of COVID-19: Case of Bosnia and Herzegovina

Cited by 28 publications

References 28 publications

Non-Performing Loans and Macroeconomics Factors: The Italian Case

Non-Performing Loans and Macroeconomics Factors: The Italian Case

Determinants of Non-Performing Loans (NPLs); Evidence from Banking Sector of Pakistan

Macroeconomic Factor Affecting Non-Performing Loans (NPLs): Evidence from Commercial Bank in Pakistan Based ARDL Cointegration Approach

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