Explanatory Power of Macroeconomic Variables as Determinants of Non-Performing Loans: Evidence form Pakistan
نویسندگان
چکیده
Since long the argument has been that both bank specific and macroeconomic factors affect the nonperforming loans and the existing literature on macroeconomic variables suggests that many macroeconomic variables do strongly influence them. Over the last few years the literature that examines NPLs has expanded in line with the interest afforded to understanding the factors responsible for financial vulnerability. The study aimed to investigate the explanatory power of macroeconomic variables as determinants of NPLs. This study used time series data of NPLs ratio and nine macroeconomic variables over the period of 1990-2011 and OLS was used to test the explanatory power of macroeconomic variables as determinants of NPLs.
منابع مشابه
Explanatory Power of Bank Specific Variables as Determinants of Non-Performing Loans: Evidence form Pakistan Banking Sector
It is widely accepted that the growth in Non-performing loans is associated with the inefficiency, failures of the banks and financial crisis in the developed and developing countries. In fact, existing studies have provided evidence that the rapid growth in NPLs leads to the financial crisis. Therefore whenever financial vulnerability is examined, main emphasis is placed on the levels of NPLs....
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