Key factors of non-performing loans in Baltic and Scandinavian countries: lessons learned in the last decade

Fuente: Redalyc
Saved in:
Bibliographic Details
Main Author: Kazys Kupčinskas
Format: Artículo científico
Language:en
Published: Vilniaus Universitetas 2017
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1876466271908790272
author Kazys Kupčinskas
author_facet Kazys Kupčinskas
contents Key factors of non-performing loans in Baltic and Scandinavian countries: lessons learned in the last decade Kazys Kupčinskas Arvydas Paškevičius Economía y Finanzas Non credit risk performing loans A cross-country panel data regression was performed for non-performing loans (NPL) in Denmark, Estonia, Finland, Latvia, Lithuania and Sweden covering a period of years 1998-2014. The main objective was to determine the major factors that were driving the NPL in the selected countries. Also, we expected to draw the differences in the banking industry between emerging economies in the Baltic countries and Western economies in the Scandinavian region. The selected variables were banking industry-related (net interest margin, ROA, ROE) and macroeconomic variables (GDP growth, RE prices, Unemployment), of which the majority is included as the Financial Soundness Indicators by the IMF. Key findings of the research show that NPL in both regions were mostly dependent on GDP growth and Unemployment, whereas the banking industry variable ROA had a very moderate effect only on a country level. The research is contributing to a better understanding of financial stability in the banking industry during the last decade, and it may have possible implications for the macroprudential policy. 2017 artículo científico 2424-6166 https://www.redalyc.org/articulo.oa?id=692273662003 10.15388/Ekon.2017.2.10994 en http://www.redalyc.org/revista.oa?id=6922 Ekonomika application/pdf Vilniaus Universitetas Ekonomika (Lituania) Num.2 Vol.96
format Artículo científico
id redalyc_692273662003
institution Redalyc
language en
publishDate 2017
publisher Vilniaus Universitetas
spellingShingle Key factors of non-performing loans in Baltic and Scandinavian countries: lessons learned in the last decade
Kazys Kupčinskas
Economía y Finanzas
Non
credit risk
performing loans
Key factors of non-performing loans in Baltic and Scandinavian countries: lessons learned in the last decade Kazys Kupčinskas Arvydas Paškevičius Economía y Finanzas Non credit risk performing loans A cross-country panel data regression was performed for non-performing loans (NPL) in Denmark, Estonia, Finland, Latvia, Lithuania and Sweden covering a period of years 1998-2014. The main objective was to determine the major factors that were driving the NPL in the selected countries. Also, we expected to draw the differences in the banking industry between emerging economies in the Baltic countries and Western economies in the Scandinavian region. The selected variables were banking industry-related (net interest margin, ROA, ROE) and macroeconomic variables (GDP growth, RE prices, Unemployment), of which the majority is included as the Financial Soundness Indicators by the IMF. Key findings of the research show that NPL in both regions were mostly dependent on GDP growth and Unemployment, whereas the banking industry variable ROA had a very moderate effect only on a country level. The research is contributing to a better understanding of financial stability in the banking industry during the last decade, and it may have possible implications for the macroprudential policy. 2017 artículo científico 2424-6166 https://www.redalyc.org/articulo.oa?id=692273662003 10.15388/Ekon.2017.2.10994 en http://www.redalyc.org/revista.oa?id=6922 Ekonomika application/pdf Vilniaus Universitetas Ekonomika (Lituania) Num.2 Vol.96
title Key factors of non-performing loans in Baltic and Scandinavian countries: lessons learned in the last decade
topic Economía y Finanzas
Non
credit risk
performing loans
url https://www.redalyc.org/articulo.oa?id=692273662003