Macroeconomic Determinants of Non-Performing Loans: Case of Turkey and Saudi Arabia
Non Performing loans (NPLs) are important variables on a macro scale for the financial stability of the country as well as microscale for banks profitability itself. Since 2008 global crisis, NPLs are monitored worldwide and became systemically important. In this research, by using a data set bet...
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| Format: | Article |
| Language: | English |
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Isarder
2018-09-01
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| Series: | İşletme Araştırmaları Dergisi |
| Subjects: | |
| Online Access: | https://www.isarder.org/2018/vol.10_issue.3_article37_full_text.pdf |
| Summary: | Non Performing loans (NPLs) are important variables on a macro scale for the
financial stability of the country as well as microscale for banks profitability itself.
Since 2008 global crisis, NPLs are monitored worldwide and became systemically
important. In this research, by using a data set between 2000-2016, the macroeconomic
determinants of NPLs have been investigated for Turkey and Saudi Arabia. By using
NPL ratio as the dependent variable and estimating through beta regression analysis, it
is found that market capitalization and inflation variables are pozitively related with
NPL for Turkey while GDP, inflation, debt, market capitalization and money supply
have positively related with NPL for Saudi Arabia and unemployment and
transparencey variables are negatively related with NPL for Saudi Arabia . It has been
found that the NPL ratios are well explained by some macroeconomic variables.
Countries with different macroeconomic conditions have different determinants of
NPLs |
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| ISSN: | 1309-0712 1309-0712 |