The Dynamics of Non-Performing Loans during Banking Crises: A New Database
IMF Working Papers, December 6, 2019
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- The Dynamics of Non-Performing Loans during Banking Crises: A New Database
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Bibliographic details
- Authors: Anil Ari, Sophia Chen, Lev Ratnovski
- Published: December 6, 2019
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513521152.001
Overview and scope
- Presents a new dataset on the dynamics of non-performing loans (NPLs) during 88 banking crises since 1990.
- Series: Working Paper No. 2019/272; Issue: 272; Volume: 2019; Pages: 40.
- DOI: https://doi.org/10.5089/9781513521152.001
- ISBN: 9781513521152; ISSN: 1018-5941; Stock No: WPIEA2019272.
Key empirical findings
- Data show similarities across crises during NPL build-ups but less similarity during NPL resolutions.
- There is a close relationship between NPL problems—elevated and unresolved NPLs—and the severity of post-crisis recessions.
- A machine learning approach identifies a set of pre-crisis predictors of NPL problems related to weak macroeconomic, institutional, corporate, and banking sector conditions.
Principal conclusions
- Reducing pre-crisis vulnerabilities is important for post-crisis output recovery.
- Promptly addressing NPL problems during a crisis is important for post-crisis output recovery.
Subject coverage and keywords
- Subject: Banking crises, Financial crises, Financial institutions, Loans, Nonperforming loans, Public debt.
- Keywords: Asia and Pacific, Banking crises, banking crisis, elevated NPL, elevated npls, Europe, Global, Loans, Nonperforming loans, NPL dynamics, NPL ratio, NPL resolution, peak NPL, peak npls, WP.
Authors and publication details
- By Anil Ari, Sophia Chen, Lev Ratnovski.
- Publication date: December 6, 2019.
- Format available: PDF; link to data for this title provided (ZIP).
Source: IMF Working Papers, "The Dynamics of Non-Performing Loans during Banking Crises: A New Database", Working Paper No. 2019/272.
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- Working Paper