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Loan portfolio and nonperforming loans in Western Balkan Countries

Author

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  • Qazim Tmava
  • Ajtene Avdullahi
  • Besë Sadikaj

Abstract

Non-performing loans (NPLs) present one of the most controversial issues in both developed and developing countries. The main purpose of this paper is to analyze and compare the loan portfolio and NPLs in the Western Balkan countries: Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro, and Serbia for the period 2008-2015. Besides, this research aims to make a comparative analysis of some other macroeconomic indicators and industry factors that affect them such as GDP, banking sector assets, loan portfolio, asset participation in GDP, credit participation in GDP, deposit credit ratio, the NPL report on total loans. The results show that the NPL have had a growing trend in the post-global financial crisis, with different variations. In this regard, the highest rate of NPL reflects Serbia, Albania, followed by Montenegro, B&H, and Macedonia, while the lowest rate is in Kosovo.

Suggested Citation

  • Qazim Tmava & Ajtene Avdullahi & Besë Sadikaj, 2018. "Loan portfolio and nonperforming loans in Western Balkan Countries," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 7(4), pages 10-20, October.
    • Handle: RePEc:rbs:ijfbss:v:7:y:2018:i:4:id:203
    DOI: 10.20525/ijfbs.v7i4.203
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    References listed on IDEAS

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    1. Shijaku, Gerti & Kalluci, Irini, 2013. "Determinants of bank credit to the private sector: The case of Albania," MPRA Paper 79092, University Library of Munich, Germany.
    2. Delova Jolevska, Evica & Andovski, Ilija, . "Non- Performing Loans In The Banking Systems Of Serbia, Croatia And Macedonia: Comparative Analysis," Ekonomika, Journal for Economic Theory and Practice and Social Issues, Society of Economists Ekonomika, Nis, Serbia, vol. 61(01), pages 1-16.
    3. Louzis, Dimitrios P. & Vouldis, Angelos T. & Metaxas, Vasilios L., 2012. "Macroeconomic and bank-specific determinants of non-performing loans in Greece: A comparative study of mortgage, business and consumer loan portfolios," Journal of Banking & Finance, Elsevier, vol. 36(4), pages 1012-1027.
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