IDEAS home Printed from https://ideas.repec.org/a/ids/wremsd/v17y2021i5p670-691.html
   My bibliography  Save this article

Linear and asymmetric analyses of macro-economic and bank-specific determinants of non-performing loans in West African Monetary Zone (WAMZ)

Author

Listed:
  • Ebere Ume Kalu
  • Augustine C. Arize
  • John Malindretos
  • Kalu Idika Awa
  • Chiamaka Goodness Eze

Abstract

We used Panel ARDL and Panel NARDL to investigate the macro-economic and bank-specific determinants of Non-Performing Loan (NPL) in the West African Monetary Zone (WAMZ) for the period 2003 to 2018. We found that both bank-specific and macro-economic determinants jointly influence NPLs in varying degrees. There is also empirical evidence that NPL adjusts more non-linearly/asymmetrically to the dynamics of the bank-specific and macro-economic determinants than it does linearly. This discovery will guide in rebalancing the policy direction in loan and credit administration from just a linear direction to a combination of linear and nonlinear perspectives especially in the WAMZ.

Suggested Citation

  • Ebere Ume Kalu & Augustine C. Arize & John Malindretos & Kalu Idika Awa & Chiamaka Goodness Eze, 2021. "Linear and asymmetric analyses of macro-economic and bank-specific determinants of non-performing loans in West African Monetary Zone (WAMZ)," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 17(5), pages 670-691.
    • Handle: RePEc:ids:wremsd:v:17:y:2021:i:5:p:670-691
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=117447
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:wremsd:v:17:y:2021:i:5:p:670-691. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=173 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.