Non-Performing Loans and Banking Profitability
Aim: This article aimed to determine the effect of macroeconomic and specific variables on the ratio of non-performing loans, and study the recursive direction of bank profitability to NPLs in Tunisian banks. Methodology: To formalise this phenomenon, the author proposed a panel data model that co...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
2024-10-01
|
| Series: | Nauki o Finansach |
| Subjects: | |
| Online Access: | https://journals.ue.wroc.pl/fins/article/view/1274 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | Aim: This article aimed to determine the effect of macroeconomic and specific variables on the ratio of non-performing loans, and study the recursive direction of bank profitability to NPLs in Tunisian banks.
Methodology: To formalise this phenomenon, the author proposed a panel data model that covers a sample of ten listed Tunisian banks over a period from 2007 to 2015.
Findings: The empirical results indicate the determining power of bank profitability measured by asset profitability, solvency ratio, credit growth rate, provision-based debt coverage rate, bank size, inflation and unemployment.
Implications: The effect of these variables veered between the preservative and destructive aspects of the quality of bank assets.
Originality/value: This study enabled not only to identify the explanatory factors of this phenomenon, but also to verify the existence of a simultaneous relation between NPLs and bank profitability. |
|---|---|
| ISSN: | 2449-9811 |