Non-Performing Loans in CESEE: Determinants and Impact on Macroeconomic Performance
IMF Working Papers, March 20, 2013
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Bibliographic details
- Authors: Nir Klein
- Published: March 20, 2013
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484318522.001
Summary and scope
- Investigates non-performing loans (NPLs) in Central, Eastern and South-Eastern Europe (CESEE) in the period of 1998–2011.
- Paper author: Nir Klein.
- Publication date: March 20, 2013.
- Series: Working Paper No. 2013/072; Issue: 072; Volume: 2013.
- Pages: 27.
- DOI: https://doi.org/10.5089/9781484318522.001.
- ISBN: 9781484318522.
- ISSN: 1018-5941.
- Stock No: WPIEA2013072.
Major findings: determinants of NPLs
- Level of NPLs can be attributed to both macroeconomic conditions and banks’ specific factors.
- Banks’ specific factors were found to have a relatively low explanatory power compared with macroeconomic determinants.
- Macroeconomic conditions explicitly linked to NPL dynamics include GDP growth, unemployment, and inflation.
Feedback effects and macro-financial linkages
- Examination of feedback effects broadly confirms strong macro-financial linkages in the CESEE region.
- While NPLs respond to macroeconomic conditions (GDP growth, unemployment, inflation), the analysis indicates strong feedback effects from the banking system to the real economy.
- High NPLs in many CESEE countries are suggested to adversely affect the pace of economic recovery.
Subject areas and keywords captured in the paper
- Subject: Banking, Commercial banks, Credit, Financial institutions, Inflation, Loans, Money, Nonperforming loans, Prices.
- Keywords: bank, Commercial banks, Credit, credit growth, data quality, feedback effects, GDP, GDP growth, Global, Inflation, Loans, Macrofinancial linkages, non-performing loans, Nonperforming loans, NPL shock, NPLS problem, NPLS ratio, NPLS result, return on equity, WP.
Source: IMF Working Paper — "Non-Performing Loans in CESEE: Determinants and Impact on Macroeconomic Performance" by Nir Klein (March 20, 2013), Working Paper No. 2013/072.