Corruption and banks’ non-performing loans: empirical evidence from MENA countries

Mohamad, Amer; Jenkins, Hatice

doi:10.1080/17520843.2020.1842478

Cited by 12 publications

(12 citation statements)

References 31 publications

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“…(Siddiqui, Mehjabeen, & Stapleton, 2021;Manz, 2019;Us, 2017;Hu et al, 2007)). The document that the political solidity index has no relationship with NPLs in Malaysia Banks (Jungo et al, 2022;Nor & Ahmad, 2015;Mohamad, & Jenkins, 2021). The equal conclusions also appeared with the aid of Mehmood, Hidthiir, & Nor.…”

Section: Association Between Political Stability and Corruption On Nplsmentioning

confidence: 97%

“…Shaffer (2008) asserts it a secret amusement and Breuer (2006) exposes those inconsistencies of rate of interest are there when the disturbed entities cross in opposition. The immense obstacle in monetary increase and improvement (Park, 2012) and it exaggerates the hassle with NPLs while finances are channeling to awful tasks (Mohamad, & Jenkins, 2021;Mehmood, Hidthiir, & Nor, 2019;Toader, Onofrei, Popescu, & Andrieș, 2017;Bougatef, 2015) which usually finally ends up with a growing of NPLs (Kasinger et al, 2021;Taiwo, & Mike, 2021). Subsequently, corruption has an extreme hurdle to the powerful enlistment and division of the assets (Lassoued, 2021;Bougatef, 2015;The Global Economy., 2017).…”

Section: Association Between Political Stability and Corruption On Nplsmentioning

confidence: 99%

“…Corruption is a vital factor to decide the non-preforming loans (Hu et al, 2007) at the same time as Perk (2012) recognizes the corruption by way of an international element of the loan first-class within the banking quarter. Corruption partakes superb part in non-preforming loans' boom in developing international locations (Breuer, 2006;Barth, Caprio & Levine, 2006;Boudriga, Taktak & Jellouli 2009;Ahmad, 2013b;Mohamad, & Jenkins, 2021;Qureshi, Qureshi, Vo, & Junejo, 2021;Jungo, Luzendo, Quixina& Madaleno, 2022;Kassem, 2022).…”

Section: Association Between Political Stability and Corruption On Nplsmentioning

confidence: 99%

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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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Section: Association Between Political Stability and Corruption On Nplsmentioning

confidence: 97%

Section: Association Between Political Stability and Corruption On Nplsmentioning

confidence: 99%

Section: Association Between Political Stability and Corruption On Nplsmentioning

confidence: 99%

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

Hassan

Sheikh

Rahman

2022

ASSAP

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“…The size of the bank positively influences credit risk and reduces the profitability of banks in SSA and LAC countries. Larger banks are considered to be too big to fail and engage in very risky transactions, thus becoming too vulnerable to shocks (Mohamad and Jenkins 2020;Petersen and Rajan 2015).…”

Section: The Effect Of Financial Inclusion On the Credit Risk And Pro...mentioning

confidence: 99%

The Effect of Financial Inclusion and Competitiveness on Financial Stability: Why Financial Regulation Matters in Developing Countries?

Jungo

Madaleno

Botelho

2022

JRFM

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This study aims to assess the effect of financial inclusion and competitiveness on banks’ financial stability, considering the moderating role of financial regulation. To do so, we compare the effects of these variables in Sub-Saharan African (SSA) and Latin American and Caribbean (LAC) countries. Our results suggest that inclusion enhances bank stability in SSA and LAC countries, and financial regulation contributes to increasing financial stability in LAC countries, while we find no statistical significance in the effect of financial regulation on financial stability in SSA countries. Moreover, competitiveness negatively impacts financial stability, and financial regulation moderates the negative effect of competitiveness on financial stability in SSA and LAC countries. We also find that financial inclusion reduces credit risk in SSA countries, and for LAC countries financial inclusion increases credit risk and reduces bank profitability. Regarding the practical implications, this study shows that fostering financial inclusion in the countries under study contributes significantly to improving the welfare of households and especially to the stability of the financial system. The present study allows expanding of the scarce literature by examining the effect of financial inclusion and market structure on financial stability in two different samples, consisting of 41 countries in the SSA region and 31 countries in the LAC region, throughout 2005–2018.

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“…Financial inclusion is about introducing the unbanked population to the formal financial system and granting them the opportunity to access financial products and services such as bank deposits, payments, savings and bank credit easily and safely (Arun and Kamath, 2015;Kim et al, 2018;Saha and Dutta, 2022). Credit risk is generally considered to be the possibility that a borrower will not meet his or her obligation to repay the loans within the previously agreed period (Feghali, Mora and Nassif, 2021;Klapper and Lusardi, 2020;Mohamad and Jenkins, 2020).…”

Section: Introductionmentioning

confidence: 99%

The Effect of Financial Inclusion on Credit Risk in SADC Countries

2022

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The objective of this study is to contribute to the knowledge about the relationship between financial inclusion and credit risk in the Southern African Development Community (SADC) countries, which remains relatively unexplored in the developing countries context. The result of panel vector autoregressive models (PVAR) estimation shows that there is no bidirectional causality between financial inclusion and credit risk, but there is unidirectional causality where financial inclusion improves credit risk. Furthermore, the feasible generalised (FGLS) estimation result confirms that financial inclusion reduces credit risk. Policymakers in SADC countries should implement measures that foster financial inclusion to achieve financial stability.

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Corruption and banks’ non-performing loans: empirical evidence from MENA countries

Cited by 12 publications

References 31 publications

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

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

The Effect of Financial Inclusion and Competitiveness on Financial Stability: Why Financial Regulation Matters in Developing Countries?

The Effect of Financial Inclusion on Credit Risk in SADC Countries

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