<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The aim of this paper is to investigate the determinants of the movement of non-performing loans in the banking sector of Bosnia and Herzegovina, as well as the impact of the COVID-19 pandemic on them. For this purpose, secondary data from the banking sector of BiH were used, over which a multi-regression analysis was performed. The variables non-performing loans, GDP, loan loss provision, and dummy variable COVID-19 were used in the analysis. The results of the analysis showed a significant influence of all three mentioned variables. The existence of a significant positive link between non-performing loans and the state of the country's economy has been proven. In addition to the above, it has been proven that the variable COVID-19 has a delayed effect on NPLs, due to the current application of the moratorium on loans.</p>
</abstract>

The aim of this paper is to investigate the determinants of the movement of non-performing loans in the banking sector of Bosnia and Herzegovina, as well as the impact of the COVID-19 pandemic on them. For this purpose, secondary data from the banking sector of BiH were used, over which a multi-regression analysis was performed. The variables non-performing loans, GDP, loan loss provision, and dummy variable COVID-19 were used in the analysis. The results of the analysis showed a significant influence of all three mentioned variables. The existence of a significant positive link between non-performing loans and the state of the country's economy has been proven. In addition to the above, it has been proven that the variable COVID-19 has a delayed effect on NPLs, due to the current application of the moratorium on loans.

Non-Performing Loan Determinants and Impact of COVID-19: Case of Bosnia and Herzegovina

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 International License.

The aim of this paper is to investigate the determinants of the movement of non-performing loans in the banking sector of Bosnia and Herzegovina, as well as...

Non-Performing Loan Determinants and Impact of COVID-19: Case of Bosnia and Herzegovina

Published Online: Sep 06, 2021

Page range: 5 - 22

DOI: https://doi.org/10.2478/jcbtp-2021-0021

Keywords
NPLs, GDP, COVID-19, loan loss provision

© 2021 Amila Žunić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Non-Performing Loan Determinants and Impact of COVID-19: Case of Bosnia and Herzegovina

Published Online: Sep 06, 2021

Page range: 5 - 22

DOI: https://doi.org/10.2478/jcbtp-2021-0021

KeywordsNPLs, GDP, COVID-19, loan loss provision

© 2021 Amila Žunić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
NPLs, GDP, COVID-19, loan loss provision