Impact of Macroeconomic and Endogenous Factors on Non-Performing Bank Assets
Determinants of default risk of banks in emerging economies have so far received inadequate attention in the literature. Using panel data techniques, this paper seeks to examine the impact of macroeconomic and endogenous factors on non-performing assets for the period from 1997-2009. The findings of the study reveal some interesting inferences contrary to the perception of few opinion makers. Lending Rates have been found to be not so significant in affecting the NPAs contrary to the general perception Bank Assets has turned out to be negatively significant indicating that large banks may have better risk management procedures and technology which definitely allows them to finish up with lower levels of NPAs. Further, this study has established that private banks and foreign banks have advantages in terms of their efficiencies in better credit management in containing the NPAs that indicates that bank privatization can lead to better management of default risk.
|Date of creation:||2012|
|Publication status:||Published in International Journal of Banking and Finance 1.9(2012): pp. 27-47|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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- Bonin, John P. & Huang, Yiping, 2001.
"Dealing with the bad loans of the Chinese banks,"
Journal of Asian Economics,
Elsevier, vol. 12(2), pages 197-214.
- John P. Bonin & Yiping Huang, 2001. "Dealing with the Bad Loans of the Chinese Banks," William Davidson Institute Working Papers Series 357, William Davidson Institute at the University of Michigan.
- Barseghyan, Levon, 2010. "Non-performing loans, prospective bailouts, and Japan's slowdown," Journal of Monetary Economics, Elsevier, vol. 57(7), pages 873-890, October. Full references (including those not matched with items on IDEAS)
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