Non-performing loans and the cost of deleveraging: The Italian experience

Bolognesi, Enrica; Compagno, Cristiana; Miani, Stefano; Tasca, Roberto

doi:10.1016/j.jaccpubpol.2020.106786

Cited by 16 publications

(15 citation statements)

References 14 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In Europe, NPLs peaked in 2015, surpassing €1 trillion in gross lending, twice as much as in 2009. During 2015, Italy had the highest number of NPLs in Europe, namely a 16.70% ratio (Bolognesi et al 2020;Cincinelli and Piatti 2017). Considering that the Italian banking system is bank-centric (Foglia and Angelini 2019), studying the dynamics of NPLS in this context is crucial, especially in light of the recent impact of the COVID-19 pandemic.…”

Section: Introductionmentioning

confidence: 99%

Non-Performing Loans and Macroeconomics Factors: The Italian Case

Foglia

2022

Risks

View full text Add to dashboard Cite

The purpose of this work is to investigate the influence of macroeconomics determinants on non-performing loans (NPLs) in the Italian banking system over the period 2008Q3–2020Q4. We mainly contribute to the literature by being the first empirical article to study this relationship in the Italian context in the recent period, thus providing fresh evidence on the macroeconomic impact on NPLs, i.e., on the credit risk of Italian banks. By employing the Autoregressive Distributed Lag (ARDL) cointegration model, we are able to investigate the short and long-run effects of macroeconomic factors on NPLs. The empirical findings show that gross domestic product and public debt have a negative impact on NPLs. On the other hand, we find that the unemployment rate and domestic credit positively influence impaired loans. Finally, we find evidence of the “gamble for resurrection” approach, i.e., Italian banks tend to support “zombie firms”.

show abstract

Section: Introductionmentioning

confidence: 99%

Non-Performing Loans and Macroeconomics Factors: The Italian Case

Foglia

2022

Risks

View full text Add to dashboard Cite

show abstract

“…The higher the LDR, the lower the liquidity capacity of the bank concerned. This is supported by research conducted that there is a positive influence between LDR and NPL (Bolognesi et al, 2020;Karadima & Louri, 2020;Tölö & Virén, 2021).…”

Section: Discussionmentioning

confidence: 68%

Effectiveness of Non-Performing Loans Management at the Penglatan Traditional Village Credit Institution (LPD)

Suardika

Dewi

2021

IJSSB

View full text Add to dashboard Cite

As a microfinance institution, the LPD, which is finance belonging to the village of Pakraman, aims to collect funds from the community to be further channeled back to the community. Seeing the critical role of the LPD as a micro institution in Bali, the LPD institution with traditional villages, and the government's desire to develop LPD in Bali, the existence of the LPD needs to be maintained and maintained. This study aims to determine the effectiveness of managing Non Performing Loans (NPL) in LPd Desa Adat Penglatan through the Non-Performing Loan Ratio (NPL), Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Earning Asset Quality (KAP) and Costs. Operating Operating Income (BOPO). This research was conducted at the Village Credit Institution (LPD) of the Penglatan Traditional Village. The instrument used to collect data is a questionnaire. This study used a population and 36 months or three-year samples using the purposive sampling technique. The collection technique uses an observation process on financial statement data. The techniques used in analyzing the data are Multiple Linear Regression Analysis, Classical Assumption Test Analysis, F-Test Analysis (F-Test), Determination Analysis, and T-Test Analysis (T-Test). The results of this study explain that the Capital Adequacy Ratio (CAR) has a significant negative effect on Non Performing Loans (NPL) and Loan to Deposit Ratio (LDR), Earning Assets Quality (KAP), and Operating Income Operating Costs (BOPO) have a significant influence for Non-Performing Loans (NPL).

show abstract

“…There is, therefore, the need for policymakers to address the menace of NPLs to unlock credit supply and, ultimately, stimulate economic growth (Ghosh, 2019). That is why in Europe, for example, there is an ongoing debate on the management and disposal of NPLs precipitated by the massive stock of NPLs (Bolognesi et al, 2020). Addressing the issue of NPLs requires identification and tackling of factors that either accelerate or slow them down.…”

Section: Introductionmentioning

confidence: 99%

Legal cost of contract enforcement and nonperforming loans: Is credit information sharing relevant?

2022

View full text Add to dashboard Cite

We examine the impact of legal cost of contract enforcement on nonperforming loans (“NPLs”) with data from 132 countries. In addition, we examine whether this impact is sensitive to the income groups of countries and the presence of credit information sharing. We observe a robust negative association between legal cost of contract enforcement and NPLs in both full sample and subsample analyses. We also observe that in the presence of credit information sharing, the effect of legal cost of contract enforcement slowing down NPLs is constrained across all income groups except the low‐income one.

show abstract

Non-performing loans and the cost of deleveraging: The Italian experience

Cited by 16 publications

References 14 publications

Non-Performing Loans and Macroeconomics Factors: The Italian Case

Non-Performing Loans and Macroeconomics Factors: The Italian Case

Effectiveness of Non-Performing Loans Management at the Penglatan Traditional Village Credit Institution (LPD)

Legal cost of contract enforcement and nonperforming loans: Is credit information sharing relevant?

Contact Info

Product

Resources

About