IDEAS home Printed from https://ideas.repec.org/a/bjz/ajisjr/1594.html

Macroeconomic Determinants of Households’ Credit Risk: Empiric Evidences from Macedonia

Author

Listed:
  • Lindita Muaremi
  • Drini Salko

Abstract

In general, the credit risk is considered as more problematic risk for the banking system. Credit given by banks is divided into loans for business and loans to individuals. The effects of the financial and debt crisis are also felt in Macedonia. This is especially noticeable after 2010, from the growth of non-performing loans against total loans granted. The non-performing individuals’ loan is a measure of credit risk of individuals. It is of particular interest to investigate the factors that determine the behavior of non-performing loans to individuals. This study sheds light on the effects that macroeconomic factors have on the credit risk of individuals. The analysis of time series and the rigorous application of the econometric model challenged the strong and significant connection of the risk free interest rate, the index of house prices, the exchange rate and economic growth of the credit risk of individuals. All these factors have a positive relationship with this risk, with the exception of economic growth. It is more than logical that an improvement of economic growth will lower the credit risk of the individual, because the rate of non-performing loans to individuals will decrease. Economic growth means an increase in the opportunities to pay back the loan. Policies with focus on economic growth, could lead to a softening of the credit risk of individuals.

Suggested Citation

  • Lindita Muaremi & Drini Salko, 2016. "Macroeconomic Determinants of Households’ Credit Risk: Empiric Evidences from Macedonia," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 5, December.
    • Handle: RePEc:bjz:ajisjr:1594
    DOI: 10.5901/ajis.2016.v5n3s1p351
    as

    Download full text from publisher

    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/9805
    Download Restriction: no
    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/9805/9443
    Download Restriction: no
    File URL: https://libkey.io/10.5901/ajis.2016.v5n3s1p351?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:onb:oenbwp:y:2002:i:3:b:3 is not listed on IDEAS
    2. Mr. Mohsin S. Khan & Mr. Abdelhak S Senhadji, 2000. "Financial Development and Economic Growth: An Overview," IMF Working Papers 2000/209, International Monetary Fund.
    3. Harvir Kalirai & Martin Scheicher, 2002. "Macroeconomic Stress Testing: Preliminary Evidence for Austria," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 58-74.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jung-Suk Yu & M. Kabir Hassan & Abdullah Mamun & Abul Hassan, 2014. "Financial Sectors Reform and Economic Growth in Morocco: An Empirical Analysis," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 13(1), pages 69-102, April.
    2. repec:agr:journl:v:4(605):y:2015:i:4(605):p:229-236 is not listed on IDEAS
    3. Amassoma Ditimi & Azeez Oluwatobiloba, 2020. "Capital Inflows, Financial Deepening And Economic Growth Nexus: The Missing Link," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 18(1), pages 61-73, May.
    4. Mr. Ludvig Söderling, 2002. "Escaping the Curse of Oil? The Case of Gabon," IMF Working Papers 2002/093, International Monetary Fund.
    5. Martin Èihák, 2005. "Stress Testing of Banking Systems (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(9-10), pages 418-440, September.
    6. Ada Aliaj & Rovena Vangjel, 2023. "Financial Development and Its Impact on the Shadow Economy in Albania," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 12, May.
    7. Salah S. ABOSEDRA & Hassan ALY & Ali F. DARRAT, 2001. "Assessing the Role of Financial Deepening in Business Cycles: The Experience of the United Arab Emirates," Middle East and North Africa 330400001, EcoMod.
    8. Rajesh Sharma & Samaresh Bardhan, 2017. "Finance growth nexus across Indian states: evidences from panel cointegration and causality tests," Economic Change and Restructuring, Springer, vol. 50(1), pages 1-20, February.
    9. Satyananda Sahoo, 2014. "Financial Intermediation and Growth: Bank-Based versus Market-Based Systems," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(2), pages 93-114, May.
    10. Muhammad Arshad Khan & Muhammad Abdul Qayyum, 2007. "Trade, Financial and Growth Nexus in Pakistan," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 6, pages 1-24, December.
    11. Carton, Christine & Ronquillo, Cely, 2008. "Determinantes del crecimiento en America Latina: Analisis empirico de los sistemas bancarios [Economic growth determinants in Latin American region: An empirical analysis based on bank systems role]," MPRA Paper 10832, University Library of Munich, Germany.
    12. Rabia Khatun, 2019. "Openness in Financial Services Trade and Financial Development: Evidence from the BRICS Economies," South Asian Survey, , vol. 26(1), pages 55-69, March.
    13. OZTURK, Ilhan, 2008. "Financial Development And Economic Growth: Evidence From Turkey," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(1), pages 85-98.
    14. Waqar Khalid & Ahmad Nawaz & Lamya Mohamed Aly Gadou & Saqib Ullah Khan & Huri Gül Aybudak, 2025. "Examining short-run and long-run nexus between economic growth, financial development, energy consumption and environmental degradation: empirical evidence for the Environmental Kuznets Curve Hypothesis in Egypt," Asia-Pacific Journal of Regional Science, Springer, vol. 9(2), pages 479-511, June.
    15. Ruja, Catalin, 2014. "Macro Stress-Testing Credit Risk in Romanian Banking System," MPRA Paper 58244, University Library of Munich, Germany.
    16. Abdul Jalil & Mete Feridun, 2011. "Impact of financial development on economic growth: empirical evidence from Pakistan," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 16(1), pages 71-80.
    17. Kjell Sümegi & Peter Haiss, 2006. "The Relationship of Insurance and Economic Growth - a Theoretical and Empirical Analysis," EcoMod2006 272100091, EcoMod.
    18. Muhammad Shahbaz, 2013. "Financial Development, Economics Growth, Income Inequality Nexus: A Case Study of Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 1(3), pages 24-47, March.
    19. Djeneba DOUMBIA, 2016. "Financial Development and Economic Growth in 43 advanced and developing economies over the period 1975–2009: Evidence of non-linearity," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 16(1), pages 13-22.
    20. Halil D. Kaya, 2021. "The Impact Of The 2008 Global Crisis On The Depth Of The Financial System," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 5-18, October.
    21. Cândida Ferreira, 2013. "Bank performance and economic growth: evidence from Granger panel causality estimations," Working Papers Department of Economics 2013/21, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

    More about this item

    Statistics

    Access and download statistics

    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:bjz:ajisjr:1594. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Richtmann Publishing Ltd (email available below). General contact details of provider: https://www.richtmann.org/journal/index.php/ajis .

    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.