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

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