Non-Performing Loans and Net Interest Margin in the MENA Region: Linear and Non-Linear Analyses

نویسندگان

چکیده

This paper analyzes the linear and non-linear relationship between non-performing loans bank profitability measured by Net Interest Margin for a sample of 74 Middle Eastern North African banks over period 2005–2020. We used System Generalized Method Moments (SGMM) as approach Panel Smooth Transition Regression (PSTR) model approach. The empirical results SGMM indicated that ratio NPLs negatively affects profitability. findings based on PSTR confirmed existence threshold effect. found below 4.42%, effect is negative but not significant, while after surpassing this threshold, becomes significant. As specifics, we revealed size positively significantly associated with For industry factors, more concentration decreases Regarding financial environment, concluded global crisis exerted impact Moreover, positive significant GDP well inflation study has some limitations regarding social, economic, differences whole sample, which includes from East others Africa. Hence, decomposing into two sub-samples could improve paper.

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ژورنال

عنوان ژورنال: International Journal of Financial Studies

سال: 2023

ISSN: ['2227-7072']

DOI: https://doi.org/10.3390/ijfs11020064