IDEAS home Printed from https://ideas.repec.org/a/mgs/ijoied/v1y2016i6p79-89.html
   My bibliography  Save this article

Risk Premium and Its Effect on Bank’s Non-Performing Loans

Author

Listed:
  • Hafiz Waqas Karman

    (University of Central Punjab)

  • Shameer Malik

    (University of Central Punjab)

Abstract

The present outcomes of risk premium have started the discussion over the Bank’s nonperforming loans and its determinants. Banking sector is taking active part in different fields of life such as financing, business transactions and loan provisions. Therefore, it is very important for the management to make good decisions relating to the non-performing loans of the bank. In the current study, we have conducted an analysis in order to examine the risk premium and its effect on bank’s non–performing loans in 8 western countries of the world based on GDP over a period from 1998 to 2010. A conceptual model has been developed for this purpose and panel data analysis has been performed. Key finding have been explained for the financial expert to make the future decisions. Our result shows that there is significant relationship between risk premium and bank’s non-performing loans.

Suggested Citation

  • Hafiz Waqas Karman & Shameer Malik, 2016. "Risk Premium and Its Effect on Bank’s Non-Performing Loans," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 1(6), pages 79-89, February.
    • Handle: RePEc:mgs:ijoied:v:1:y:2016:i:6:p:79-89
    DOI: 10.18775/ijied.1849-7551-7020.2015.16.2005
    as

    Download full text from publisher

    File URL: http://researchleap.com/wp-content/uploads/2016/02/5.-Risk-Premium-and-Its-Effect-on-Bank%E2%80%99s-Non-Performing-Loans.pdf
    Download Restriction: no
    File URL: http://researchleap.com/risk-premium-and-its-effect-on-banks-non-performing-loans/
    Download Restriction: no
    File URL: https://libkey.io/10.18775/ijied.1849-7551-7020.2015.16.2005?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
    ---><---

    More about this item

    Keywords

    Risk premium; Bank non-performing loans; GDP growth rate;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

    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:mgs:ijoied:v:1:y:2016:i:6:p:79-89. 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: Bojan Obrenovic (email available below). General contact details of provider: https://researchleap.com/ .

    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.