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...

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Main Author: Imane Ameur
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
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author Imane Ameur
author_facet Imane Ameur
author_sort Imane Ameur
collection DOAJ
description 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.
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spelling doaj-art-0dfdf6a000c44a4a8cb63f8739d327a02025-08-20T03:07:57ZengWydawnictwo Uniwersytetu Ekonomicznego we WrocławiuNauki o Finansach2449-98112024-10-012911275Non-Performing Loans and Banking ProfitabilityImane Ameur0https://orcid.org/0009-0005-9646-7733UMMTOAim: 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.https://journals.ue.wroc.pl/fins/article/view/1274non-performing loans ‎bank profitability ‎tunisian banks
spellingShingle Imane Ameur
Non-Performing Loans and Banking Profitability
Nauki o Finansach
non-performing loans ‎
bank profitability ‎
tunisian banks
title Non-Performing Loans and Banking Profitability
title_full Non-Performing Loans and Banking Profitability
title_fullStr Non-Performing Loans and Banking Profitability
title_full_unstemmed Non-Performing Loans and Banking Profitability
title_short Non-Performing Loans and Banking Profitability
title_sort non performing loans and banking profitability
topic non-performing loans ‎
bank profitability ‎
tunisian banks
url https://journals.ue.wroc.pl/fins/article/view/1274
work_keys_str_mv AT imaneameur nonperformingloansandbankingprofitability