Corruption and non-performing loans

Gjeçi, Ardit (author), Marinč, Matej (author)

This article empirically evaluates the impact of corruption on the level of non-performing loans (NPLs) using the international bank-level data, spanning over the period 2000e2016 and across 140 countries. We find a positive and statistically significant relationship between corruption and NPLs. We also analyze the channels through which cor- ruption affects NPLs. We find that the relationship between corruption and NPLs becomes more pronounced during and after the global financial crisis and is more pronounced for smaller banks. The association between corruption and NPLs is stronger in countries characterized by a high level of collectivism. The link between corruption and NPLs is higher where the legal environment is weak and where economies are market-based.

• Language: English
• Keywords: banks, credit, corruption, bank lending, non-performing loans, financial crisis, corruption perception index, economic development
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Version of Record
• Year: 2022
• Number of pages: Str. 240-259
• Numbering: Vol. 24, iss. 4,. article no. 4
• PID: 20.500.12556/RUL-146657
• UDC: 336.71
• ISSN on article: 2335-4216
• DOI: 10.15458/2335-4216.1312
• COBISS.SI-ID: 132056323
• Publication date in RUL: 05.06.2023

Record is a part of a journal

• Title: Economic and business review
• Publisher: Ekonomska fakulteta
• ISSN: 2335-4216
• COBISS.SI-ID: 268649216

Licences

• License: CC BY-NC-ND 4.0, Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
• Link: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Description: The most restrictive Creative Commons license. This only allows people to download and share the work for no commercial gain and for no other purposes.

Secondary language

• Language: Slovenian
• Keywords: banke, krediti, korupcija

Projects

• Funder: EC - European Commission
• Funding programme: Erasmus Mundus
• Project number: 551984-EM-1-2014-1-ES-ERA MUNDUS-EMA2
• Name: Green-Tech-WB: Smart and Green technologies for innovative and sustainable societies in Western Balkans

• Funder: ARRS - Slovenian Research Agency
• Project number: P5-0161
• Name: Izzivi vlagateljev, podjetij, finančnih institucij in države v negotovem evropskem gospodarskem okolju