A COMPARATIVE ANALYSIS BETWEEN WESTERN BALKAN COUNTRIES AND SELECTED OECD COUNTRIES (2010 - 2019) OF THE EFFECT OF UNEMPLOYMENT ON NON-PERFORMING LOAN

The main purpose of this paper is to determine the effect unemployment on non-performing loans through a comparative analysis between Western Balkans countries and some selected OECD countries. size (NPLs) plays key role in stability banking sector country. Macroeconomic factors that explain NPLs contain very important information for banks as well country studies regard, which compare developing already developed ones have received little attention. To carry out study, panel data quantitative econometric models been applied, specifically Linear Regression, Random Effect, Fixed Huasman - Taylor Regression Generalized Estimating Equations (GEE Model) secondary from official reports World Bank, Organization Economic Cooperation Development, during period 2010 2019. Based economic theory our findings, we can say relationship rate directly proportional: an increase will lead loan rate. Moreover, Findings show controlling helps level