Government failures and non-performing loans in Asian countries

Giammanco, Maria Daniela; Gitto, Lara; Ofria, Ferdinando

doi:10.1108/jes-06-2022-0348

Cited by 6 publications

(4 citation statements)

References 37 publications

(60 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Finally, the FDI is positively related to the CNPL rises in the FDI will increase the CNPL by .4821061. This is supported by Giammanco et al (2022), arguing that increases in FDI encourage banks to relax their credit terms to issue more loans to foreign businesses, which consequently raises the CNPL. On the other side, the RNPL results have revealed that the CAR is statistically significant and positively associated with the RNPL, while LTD is negatively related to it.…”

Section: The Results Of Gmm and Discussionmentioning

confidence: 95%

The Crucial Macroeconomic and Microeconomic Determinants of Retail and Corporate Credit Risks

Farag,

Kassem,

Ramzy

2023

ijfirm

View full text Add to dashboard Cite

Purpose:In early 2018, the corporate non-performing loan ratio began to climb steadily, showing some threats to the financial health of the Egyptian banking system. Therefore, the determinants of corporate and retail credit risks in the banking sector of Egypt during 2013-2020 were studied in the present work to provide better insight into how the macroeconomic and microeconomic determinants affect the level of credit risks. Design/Methodology/Approach: The present research utilized the Dickey-Fuller test to assess the stationarity of the panel data and then employed the generalized method of moments (GMM) for data analysis. Findings: It was found that asset size, loans-to-deposits, inflation, gross domestic product (GDP), and lending interest rate were negatively associated with the corporate credit risk, while the capital adequacy ratio, foreign direct investment (FDI), and public debt were positively related. Moreover, the loans-to-deposits ratio was negatively associated with retail credit risk, while the capital adequacy ratio was positively related. Originality/Value: In this context, classifying the credit risk into corporate and retail credit risk was very crucial as it illustrated that the corporate credit risk was more sensitive to the determinants than the retail ones.

show abstract

Section: The Results Of Gmm and Discussionmentioning

confidence: 95%

The Crucial Macroeconomic and Microeconomic Determinants of Retail and Corporate Credit Risks

Farag,

Kassem,

Ramzy

2023

ijfirm

View full text Add to dashboard Cite

show abstract

“…The non-performing financing (NPF) ratio reflects a measure of the stability of an Islamic bank. Banks must keep non-performing loans or financing to a minimum (Kuzucu & Kuzucu, 2019) to create a stable banking system (Giammanco et al, 2022). The NPL ratio at conventional banks measures credit risk, including non-performing financing and provisions to evaluate the banking sector's stability, fragility and long-term financial sustainability (Ashikuzzaman, 2022).…”

Section: Variablesmentioning

confidence: 99%

The Determinants of Profit-Loss Sharing Financing of Islamic Banks in Indonesia

Salman¹

2023

muqtasid

View full text Add to dashboard Cite

Profit-loss sharing financing is one of the leading business activities carried out by Islamic banks, including buying, selling, and leasing. Thus, it is important to identify the determinants of profit-loss sharing financing of Islamic banks. This study examines the effect of capital adequacy ratios, non-performing financing, third party funds, and profit-sharing rate on mudharabah deposits of Islamic banks in Indonesia. Eleven Islamic banks in Indonesia from 2015 to 2019 periode were selected as sample of the study using purposive sampling. Data analysis using Partial Least Square with SmartPLS software version 3.3.7. The study results indicate that third-party funds have a significant positive effect on profit-loss sharing financing. The increasing number of third-party funds that Islamic banks have collected from customers impacts increasing distribution in the form of profit-loss sharing financing. The study results also indicate that the capital adequacy ratio, non-performing financing, and profit-sharing rate on mudharabah deposits do not affect profit-loss sharing financing. The implications for Islamic banks are to maintain the amount of third-party funds collection and compliance with sharia principles.

show abstract

“…While recent studies on NPLs abound (Bayar 2019;Ozili 2019;Khan et al 2020;Misman and Bhatti 2020;Fallanca et al 2021;Karadima and Louri 2021;Phung et al 2022;Golitsis et al 2022;Fakhrunnas et al 2022;Hakimi et al 2022;El-Chaarani and Abraham 2022;Foglia 2022;Erdas and Ezanoglu 2022;Alnabulsi et al 2022;Jubilee et al 2022;Mdaghri 2022;Giammanco et al 2022;Apergis 2022;Akhter 2023), they mainly examine the banking sector of developed, large, and developing and emerging economies. Notably, just a few studies have focused on small island countries (Kumar et al 2018;Chand et al 2021), and these are generally restrictive in terms of the model specification, sample, and scope.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Non-Performing Loans in a Small Island Economy of Fiji: Accounting for COVID-19, Bank-Type, and Globalisation

Chand,

Kumar,

Stauvermann

2023

JRFM

View full text Add to dashboard Cite

An increase in non-performing loans and bad debts in the banking sector can make banks vulnerable to a loss of confidence among customers and other banks and a banking collapse. The recent pandemic (COVID-19) and the evolving globalisation can affect bank operations, although the effects may depend on the type of banks and other bank-specific factors. In this paper, we revisit the topic on the determinants of non-performing loans of banks in a small island economy of Fiji over the period 2000 to 2022. We apply a fixed-effect method and consider seven banks (five commercial banks and two non-bank financial institutions). In our estimations, we examine the effect of bank-specific factors and control for the social and economic globalisation, the GFC, the COVID-19 pandemic, and bank-type effects, as well as the effect of the interaction between the bank type and the pandemic, as key contributions of the study. Overall, our results are consistent in terms of the effects noted from the bank-specific factors. From the extended model estimations, we note that COVID-19 had a more adverse effect on loan losses than the GFC, and the interaction between the bank type and COVID-19 indicates that non-banks were highly vulnerable to loan losses, whereas commercial banks exhibited greater preparedness. Economic globalisation reduces bank losses, whereas social globalisation exacerbates NPLs.

show abstract

Government failures and non-performing loans in Asian countries

Cited by 6 publications

References 37 publications

The Crucial Macroeconomic and Microeconomic Determinants of Retail and Corporate Credit Risks

The Crucial Macroeconomic and Microeconomic Determinants of Retail and Corporate Credit Risks

The Determinants of Profit-Loss Sharing Financing of Islamic Banks in Indonesia

Determinants of Non-Performing Loans in a Small Island Economy of Fiji: Accounting for COVID-19, Bank-Type, and Globalisation

Contact Info

Product

Resources

About