Non-performing loans and bank lending behaviour

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

This article empirically investigates whether the level of non-performing loans (NPLs) affects the bank lending behaviour using the bank-level data across 42 coun- tries, spanning over the period from 2000 to 2017. We find a negative and statisti- cally significant relationship between NPL and bank loan growth. This impact is not geographically restricted and is confirmed for the EU, non-EU, advanced, and emerging countries subsamples. We also examine the channels through which NPLs affect loan growth. Our results show that the association between NPL and loan growth is more pronounced for well-capitalized banks. We find no evidence in support of an effect of asset management companies on the negative association between NPLs and loan growth. In addition, our results are robust with respect to alternative measure of credit risk and different specifications.

• Language: English
• Keywords: banks, crediting, macroeconomics, bank lending behaviour, non-performing loans, macroeconomic determinants
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Author Accepted Manuscript
• Year: 2023
• Number of pages: 26 str.
• Numbering: Vol. 25, iss. 1, article no. 7
• PID: 20.500.12556/RUL-147394
• UDC: 336.71
• ISSN on article: 1460-3799
• DOI: 10.1057/s41283-022-00111-z
• COBISS.SI-ID: 138947075
• Publication date in RUL: 04.07.2023

Record is a part of a journal

• Title: Risk management
• Shortened title: Risk manag.
• Publisher: Springer Nature
• ISSN: 1460-3799
• COBISS.SI-ID: 514966297

Secondary language

• Language: Slovenian
• Keywords: banke, kreditiranje, makroekonomija

Projects

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

• Funder: EC - European Commission
• Funding programme: Erasmus Mundus project Green Tech WB
• Project number: 551984-EM-1-2014-1-ES-ERA MUNDUS-EMA2