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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| Format: | Article |
| Language: | English |
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Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
2024-10-01
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| Series: | Nauki o Finansach |
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| Online Access: | https://journals.ue.wroc.pl/fins/article/view/1274 |
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| _version_ | 1849733804042747904 |
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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. |
| format | Article |
| id | doaj-art-0dfdf6a000c44a4a8cb63f8739d327a0 |
| institution | DOAJ |
| issn | 2449-9811 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu |
| record_format | Article |
| series | Nauki o Finansach |
| 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 |