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Determinants ofNon-Performing Loans in Central and Eastern European Countries

Bruna Škarica ; London School of Economics and Political Science and Faculty of Economics and Business University of Zagreb


Puni tekst: engleski pdf 364 Kb

str. 1-19

preuzimanja: 3.035

citiraj


Sažetak

This paper analyses the determinants of the changes in non-performing loans (NPL) ratio in selected
European emerging markets. The model was estimated on a panel dataset using fixed effects estimator
for seven Central and Eastern European (CEE) countries between Q3:2007 and Q3:2012. The
analyzed countries are Bulgaria, Croatia, Czech Republic, Hungary, Latvia, Romania and Slovakia.
Although the literature on NPLs is quite extensive, this is the first empirical research on the countries
of CEE region using aggregate, country – level data on problem loans. The results suggest that the
primary cause of high levels of NPLs is an economic slowdown, which is evident from statistically
significant and economically large coefficients on GDP, unemployment and inflation rate.

Ključne riječi

non-performing loans; macro-financial linkages; Central and Eastern Europe; panel regressions; financial stability

Hrčak ID:

136791

URI

https://hrcak.srce.hr/136791

Datum izdavanja:

19.11.2013.

Posjeta: 3.515 *