1. bookVolumen 11 (2022): Heft 2 (May 2022)
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License
Format
Zeitschrift
eISSN
2336-9205
Erstveröffentlichung
11 Mar 2014
Erscheinungsweise
3 Hefte pro Jahr
Sprachen
Englisch
access type Uneingeschränkter Zugang

How Do Bank-Specific Factors Impact Non-Performing Loans: Evidence from G20 Countries

Online veröffentlicht: 30 Apr 2022
Volumen & Heft: Volumen 11 (2022) - Heft 2 (May 2022)
Seitenbereich: 97 - 122
Eingereicht: 24 Mar 2021
Akzeptiert: 24 Jun 2021
Zeitschriftendaten
License
Format
Zeitschrift
eISSN
2336-9205
Erstveröffentlichung
11 Mar 2014
Erscheinungsweise
3 Hefte pro Jahr
Sprachen
Englisch
Abstract

Banking is important for the stability and success of the economy. The success of the banking system on financial intermediation in developing countries is directly affected by non-performing loans (NPLs). Many factors can be treated as NPL determinants. Accordingly, the factors that explain NPLs contain very important information for banks. To this end, the study is an attempt to examine various banking factors that affect NPLs with respect to developing economies. In this study, the bank-specific and macroeconomic factors affecting the NPL rates were analysed through the dynamic panel data analysis. Analyses were made using described G20 countries between 1998 and 2017. The results indicate that the lagged value of NPLs, return on equity, credit growth and credit costs have a significant positive relationship with NPLs, while capital adequacy and GDP have a negative association with NPLs. The results confirm that if the bank-specific conditions change, the credit quality and bank management of banks are affected. It was concluded that the performance of banks is responsive to an effective loan monitoring policy. The findings of the study have implications for policymakers and regulators in the banking sector.

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