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Impact of Bank Specific and Macro Determinants on Non-performing Loans of Polish Banking Sector

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  • Burim Gashi

Abstract

The aim of this paper is to examine the determinants of non-performing loans (NPLs) in Poland. We investigate macroeconomic and bank-specific determinants of NPLs – for a panel of 18 banks from Poland, using annual data for the period 2005-2018. We apply two alternative estimation techniques: fixed-effects model and system Generalised Method of Moments. The results show the bank-specific determinants, with an impact on the amount of NPLs include return on equity and growth of gross loans,, while the most important macroeconomic factors influencing NPLs in Poland are GDP growth, domestic credit to the private sector, public debt and unemployment.

Suggested Citation

  • Burim Gashi, 2021. "Impact of Bank Specific and Macro Determinants on Non-performing Loans of Polish Banking Sector," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 129-147.
    • Handle: RePEc:bas:econst:y:2021:i:7:p:129-147
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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G2 - Financial Economics - - Financial Institutions and Services

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