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Economic Thought and Practice, Vol. 31 No. 2, 2022.

Preliminary communication

https://doi.org/10.17818/EMIP/2022/2.4

MACROECONOMIC FACTORS OF NON-PERFORMING LOANS: THE CASE OF BOSNIA AND HERZEGOVINA

Ante Džidić orcid id orcid.org/0000-0002-0869-7864 ; University of Mostar, Faculty of Economics, Mostar, Bosnia and Herzegovina
Igor Živko orcid id orcid.org/0000-0001-6603-3110 ; University of Mostar, Faculty of Economics, Mostar, Bosnia and Herzegovina
Anela Čolak orcid id orcid.org/0000-0002-0777-6827 ; University of Mostar, Faculty of Economics, Mostar, Bosnia and Herzegovina

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Abstract

This paper examines the key macroeconomic factors of non-performing loans (NPLs) in the banking sector of Bosnia and Herzegovina. The research is conducted on quarterly time series data within the period from 2005 to 2019. The autoregressive distributed lag (ARDL) approach is used to model the long-run and short-run relationship between macroeconomic time series. The research results show that increase in real GDP is associated with decrease in NPLs, while rising unemployment and consumer prices are correlated with higher levels of NPLs at 5% significance level.

Keywords

non-performing loans; credit risk; factors

Hrčak ID:

287320

URI

https://hrcak.srce.hr/287320

Publication date:

16.12.2022.

Article data in other languages: croatian

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