Macro economical and bank‐specific vulnerabilities of nonperforming loans: A comparative analysis of developed and developing countries. Issue 2 (19th September 2020)

• Record Type: Journal Article
• Authors: Syed, Aamir A.; Aidyngul, Yeren
• Is Part Of: Journal of public affairs. Volume 22:Issue 2(2022)
• Page Start: n/a
• Page End: n/a
• Publication Date: 2020-09-19
• Subjects: Public administration -- Periodicals; Public relations -- Periodicals; 351
• DOI: 10.1002/pa.2414
• Languages: English
• ISSNs: 1472-3891

Abstract

Abstract : This research work intends to measure how bank‐specific and macroeconomic determinants affect nonperforming loans among developed and developing countries. To achieve the objective dynamic Generalized Method of Moments (GMM) technique is used covering the period from 1995 to 2019, apart from using fixed and random tests for robustness checks.Findings suggest that the common macroeconomic and bank‐specific factors which affect nonperforming loans among developed and developing countries are growth rate, inflation, interest rate, capital adequacy ratio, credit to deposit ratio, and bank credit to the private sector. Macroeconomic factors and bank‐specific factors affecting only developing countries are household consumption, unemployment, and exchange rate, return on bank assets, bank asset to GDP, and bank credit to the government sector.These findings will help policymakers in better understanding the impact of various determinants on nonperforming loans. So that appropriate policies can be framed for reducing nonperforming among the developed and developing countries.