Determinants of Nonperforming Loans in Guyana

Khemraj, Tarron; Pasha, Sukrishnalall

doi:10.1057/978-1-137-52246-7_9

Cited by 56 publications

(101 citation statements)

References 9 publications

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“…The variable BNKSZ (size of the bank) is negative and insignificant. This evidence is inconsistent with previous studies by Sheefeni (2015), Geletta (2012), Misra and Dhal(2010), Delis and Papanikolaou(2009) and Khemraj and Pasha (2009). Therefore, in this study, it could be summarized that the larger the size of the bank, the fewer loan defaults.…”

Section: Descriptive Statisticscontrasting

confidence: 99%

“…However, some studies show the opposite findings, which means that highly capitalized banks are likely to have high NPLs compared to their fellow with lower capitalization (Laryea, Ntow-Gyamfi, and Alu, 2016; Agoraki, 2011; Boudriga, 2009). Meanwhile, the finding from Fajar and Umanto (2017) stated that there is no significant relationship between capitalization and NPLs, and it supported by the study from Louzis (2012) and Khemraj and Pasha (2009).…”

Section: Capitalizationmentioning

confidence: 83%

“…An adjustment in the effective exchange rate likewise can influence borrowers' obligation overhauling limits through different channels, and its effects on NPLs can be certain or the other way around. As referenced in Khemraj and Pasha (2009), deterioration of the exchange rate can have assorted signs on borrowers' debt-servicing limit. In any case, it can improve the seriousness of fare situated firms.…”

Section: Real Effective Exchange Ratementioning

confidence: 99%

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Determinants of Non-Performing Loans: Evidence From Conventional Banks in Malaysia

Zain

Ghazali

Daud

2020

HSSR

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Purpose of the study: This paper attempts to determine the determinants of non-performing loans in commercial banks in Malaysia. This study attempts to explore the specific bank factors as well as macroeconomics factors that are contributing to the non-performing loans.Methodology: This paper analyzes the data using eight local commercial banks in Malaysia. The data collected from the annual report and Data Streams database for the year 2009 to 2018. A panel data approach has been used to analyze the data. All the determinants regressed against non-performing loans by using STATA 14 as a tool. Main Findings:The results of this study present that capitalization had a significant negative relationship with nonperforming loans, while the real effective exchange rate had a significant positive correlation with non-performing loans. Applications of this study:This study highlights the crucial factors of the non-performing loans that can be used by the bank or financial institutions. Novelty/Originality of this study:This study includes one new variable for the macroeconomics factors, which is the real effective exchange rate, and the result shows it is significant towards non-performing loans. Therefore, this study enhances the existing model with the new variable that can be used to find what is affecting the non-performing loans.

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Section: Descriptive Statisticscontrasting

confidence: 99%

Section: Capitalizationmentioning

confidence: 83%

Section: Real Effective Exchange Ratementioning

confidence: 99%

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Determinants of Non-Performing Loans: Evidence From Conventional Banks in Malaysia

Zain

Ghazali

Daud

2020

HSSR

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“…In a comparative study between Australian and US economies, Ali and Daly (2010) provide evidence that GDP is highly significant and negatively correlated with the default risk in both countries. Similarly, Khemraj and Pasha (2009) show that an improvement in the real economy translates into lower bad loans. In Islamic framework, debt (dayn) is an obligation to be fulfilled especially if the Muslim is able to repay it.…”

Section: B) Macroeconomic Factorsmentioning

confidence: 94%

The impact of corruption on the soundness of Islamic banks

Bougatef

2015

Borsa Istanbul Review

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Islamic banking is developing rapidly around the world and is increasingly recognized as a viable alternative mode of financing especially these last years when capitalism has shown its limits and weaknesses. However, this astronomical growth of banking and Islamic finance was associated with a high level of corruption that plagues many Muslim countries. This ailment of corruption can deter Islamic banking to be a better effective and meaningful pathway for poverty reduction and economic development. The purpose of this paper is to investigate the impact of corruption on the soundness of Islamic banks (IBs). Using a panel of 69 IBs over the period 2008-2010, we provide robust evidence that the corruption level aggravates the problem of impaired financing. JEL Classification G21 Z12 C33 AbstractIslamic banking is developing rapidly around the world and is increasingly recognized as a viable alternative mode of financing especially these last years when capitalism has shown its limits and weaknesses. However, this astronomical growth of banking and Islamic finance was associated with a high level of corruption that plagues many Muslim countries. This ailment of corruption can deter Islamic banking to be a better effective and meaningful pathway for poverty reduction and economic development. The purpose of this paper is to investigate the impact of corruption on the soundness of Islamic banks (IBs). Using a panel of 69 IBs over the period 2008-2010, we provide robust evidence that the corruption level aggravates the problem of impaired financing. JEL Classification

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“…It is an asset of microfinance institutions through which liquidity of microfinance is judged and gives the overview of microfinance institutions performance. Khemraj and Pasha (2009) identified gross domestic product growth is negatively related to quality of loan which is suggested that the improvement in loan quality leads to increase in real economic growth. Cappiello et al (2010) stated a change in loan growth has an effect on GDP.…”

Section: Total Loan (Tl)mentioning

confidence: 99%