Macroeconomic and Bank-Specific Determinants of Non-Performing Loans in Greece: A Comparative Study of Mortgage, Business and Consumer Loan Portfolios

Louzis, Dimitrios P.; Vouldis, Angelos T.; Metaxas, Vasilios L.

doi:10.2139/ssrn.1703026

Cited by 87 publications

(100 citation statements)

References 26 publications

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“…This makes a negative correlation between past income and lending problem. Louzis et al (2012) expressed that the ROE indicator has a significant interest and negative correlation to NPL of housing and consumption sectors and it's not significant with NPL of business sector. It proves that management quality reflecting an efficiency of credit application procedure, which is usually built with a quantitative model technique, although the quality evaluation procedure is not different among different banks.…”

Section: Roe Ratio Impact On Nplmentioning

confidence: 99%

The impact of macroeconomic and bank-specific factors toward non-performing loan: evidence from Indonesian public banks

Fajar

Umanto

2017

Banks and Bank Systems

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AUTHORS Hanifan Fajar Umanto ARTICLE INFOHanifan Fajar and Umanto (2017). The impact of macroeconomic and bank-specific factors toward non-performing loan: evidence from Indonesian public banks AbstractThe present study focuses on the need for banking sector to be more reactive when facing globalization that could bring impact on banking industries complexity. Based on empirical studies, there is a need to analyze non performing loan determinants comprehensively using macroeconomic and bank-specific factors to make a good condition on bank, because combining macroeconomic and bank-specific variable as NPL determinants has made a big improvement to analyze NPL. The object of present study is 20 Banks listed in Indonesia Stock Exchange (IDX) between q12005-q42014. Using dynamic panel data GMM-system method shows that the previous period of NPL (non performing loan), change of PDB (Gross Domestic Product) and inflation rate have a significantly negative impact on NPL. However, BOPO (Operations Expenses to Operations Income) and ROE (Return on Equity) has a significantly positve relationship to NPL. On the other hand, this research does not find any significance on BI rate (interest rate), solvency ratio, and size to NPL. From the result, it can be concluded that combining macroeconomic and bank-specific variable could be an alternative method to analyze NPL determinants on bank.

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Section: Roe Ratio Impact On Nplmentioning

confidence: 99%

The impact of macroeconomic and bank-specific factors toward non-performing loan: evidence from Indonesian public banks

Fajar

Umanto

2017

Banks and Bank Systems

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“…Empirical studies tend to confirm a positive link between the NPLs and unemployment rate of the economy. Louzis et al (2010) found that unemployment with one-period lag is a leading indicator of NPLs. It may be inferred that a rise in unemployment may influence negatively the cash flow streams of households and increase the debt burden.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Non-Performing Loans in Licensed Commercial Banks: Evidence from Sri Lanka

Ekanayake

Azeez

2015

Asian Economic and Financial Review

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“…Podpiera and Weill (2008) extend the Granger causality model developed by Berger and DeYoung (1997) by applying GMM dynamic panel estimators on a panel of Czech banks, and also find strong evidence in favour of the "bad management" hypothesis. Recently, Louzis et al (2012) employ dynamic panel data methods to examine the determinants of NPLs in the Greek banking sector and also find support to the "bad management" hypothesis.…”

mentioning

confidence: 98%

“…Louzis, Vouldis and Metaxas (2012) employ this approach to examine the determinants of NPLs for different category of loan for the period 2003 to 2009. They present evidence that impaired loans in the Greek banking sector are mostly explained by systematic indicators that are real GDP, growth rate, unemployment rate, real interest rates, and public debt.…”

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confidence: 99%

Determinants of Problem Loans: Non-performing Loans vs. Loan Quality Deterioration

Chaibi¹

2016

IBR

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The growing literature on credit risk determinants provides results that are based on the set of bad loans present in the bank's assets especially non-performing loans. Besides this classic proxy, the present paper examines the determinants of loan quality deterioration by using a qualitative measure. Actually, we take advantage of a detailed dataset containing information on the quality of loans contracted by banks to different Tunisian firms. The study aims to detect if credit risk determinants are different through quantitative and qualitative proxies. We take into account bank-specific indicators that are likely to affect banking credit risk. Overall, the results show that cost inefficiency and bank profitability are common determinants of the credit risk level and the loan quality deterioration, that are differently influenced by bank size and capitalization.

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Macroeconomic and Bank-Specific Determinants of Non-Performing Loans in Greece: A Comparative Study of Mortgage, Business and Consumer Loan Portfolios

Cited by 87 publications

References 26 publications

The impact of macroeconomic and bank-specific factors toward non-performing loan: evidence from Indonesian public banks

The impact of macroeconomic and bank-specific factors toward non-performing loan: evidence from Indonesian public banks

Determinants of Non-Performing Loans in Licensed Commercial Banks: Evidence from Sri Lanka

Determinants of Problem Loans: Non-performing Loans vs. Loan Quality Deterioration

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