Corruption’s impact on non-performing loans of banks in emerging markets: Empirical insights
Purpose: This study investigates the impact of control of corruption (COC) on nonperforming loans (NPLs) in South Asian countries. Methodology: The present study selected three South Asian countries (Pakistan, India, and Bangladesh) from 2000 to 2019. Further, the current research employed the fixed...
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| Language: | English |
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Elsevier
2024-12-01
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| Series: | Research in Globalization |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2590051X24000509 |
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| author | Abdul Rehman Waqas Mehmood Ahnaf Ali Alsmady Arshian Sharif |
| author_facet | Abdul Rehman Waqas Mehmood Ahnaf Ali Alsmady Arshian Sharif |
| author_sort | Abdul Rehman |
| collection | DOAJ |
| description | Purpose: This study investigates the impact of control of corruption (COC) on nonperforming loans (NPLs) in South Asian countries. Methodology: The present study selected three South Asian countries (Pakistan, India, and Bangladesh) from 2000 to 2019. Further, the current research employed the fixed effect model (FEM) analysis on a sample of 81 conventional banks based in South Asian countries. Findings: The result reveals that control of corruption has a significant and negative association with NPLs, indicating that weak control of corruption would lead to an increase in NPLs in the sample countries. Implications: The findings provide insights to the policymakers in making strategic decisions about NPLs regarding control of corruption impact. Originality: The significant increase in NPLs is worrying as it may undermine banks’ ability to grant credit and support a country’s economic recovery. The increasing trend of NPL rates and limited studies in related literature assessing NPLs in the South Asian region has motivated this study, which examines the external and internal factors that may influence NPLs. |
| format | Article |
| id | doaj-art-3a1ee733723b4ea2a017354c2aacba7a |
| institution | OA Journals |
| issn | 2590-051X |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Research in Globalization |
| spelling | doaj-art-3a1ee733723b4ea2a017354c2aacba7a2025-08-20T02:35:00ZengElsevierResearch in Globalization2590-051X2024-12-01910024110.1016/j.resglo.2024.100241Corruption’s impact on non-performing loans of banks in emerging markets: Empirical insightsAbdul Rehman0Waqas Mehmood1Ahnaf Ali Alsmady2Arshian Sharif3Department of Management Sciences, National College of Business Administration and Economics, Rahim Yar Khan, Pakistan; Corresponding author.Research Institute of Humanities & Social Sciences, University of Sharjah, United Arab EmiratesAccounting Department, Faculty of Business Administration, University of Tabuk, Tabuk, Saudi ArabiaDepartment of Economics and Finance, Sunway Business School, Sunway University, Subang Jaya, Malaysia; University of Economics and Human Sciences in Warsaw, Warsaw, Poland; College of International Studies, Korea University, Seoul, South KoreaPurpose: This study investigates the impact of control of corruption (COC) on nonperforming loans (NPLs) in South Asian countries. Methodology: The present study selected three South Asian countries (Pakistan, India, and Bangladesh) from 2000 to 2019. Further, the current research employed the fixed effect model (FEM) analysis on a sample of 81 conventional banks based in South Asian countries. Findings: The result reveals that control of corruption has a significant and negative association with NPLs, indicating that weak control of corruption would lead to an increase in NPLs in the sample countries. Implications: The findings provide insights to the policymakers in making strategic decisions about NPLs regarding control of corruption impact. Originality: The significant increase in NPLs is worrying as it may undermine banks’ ability to grant credit and support a country’s economic recovery. The increasing trend of NPL rates and limited studies in related literature assessing NPLs in the South Asian region has motivated this study, which examines the external and internal factors that may influence NPLs.http://www.sciencedirect.com/science/article/pii/S2590051X24000509Control of CorruptionCorruption Perception IndexNon-performing LoansBanksPakistanIndia and Bangladesh |
| spellingShingle | Abdul Rehman Waqas Mehmood Ahnaf Ali Alsmady Arshian Sharif Corruption’s impact on non-performing loans of banks in emerging markets: Empirical insights Research in Globalization Control of Corruption Corruption Perception Index Non-performing Loans Banks Pakistan India and Bangladesh |
| title | Corruption’s impact on non-performing loans of banks in emerging markets: Empirical insights |
| title_full | Corruption’s impact on non-performing loans of banks in emerging markets: Empirical insights |
| title_fullStr | Corruption’s impact on non-performing loans of banks in emerging markets: Empirical insights |
| title_full_unstemmed | Corruption’s impact on non-performing loans of banks in emerging markets: Empirical insights |
| title_short | Corruption’s impact on non-performing loans of banks in emerging markets: Empirical insights |
| title_sort | corruption s impact on non performing loans of banks in emerging markets empirical insights |
| topic | Control of Corruption Corruption Perception Index Non-performing Loans Banks Pakistan India and Bangladesh |
| url | http://www.sciencedirect.com/science/article/pii/S2590051X24000509 |
| work_keys_str_mv | AT abdulrehman corruptionsimpactonnonperformingloansofbanksinemergingmarketsempiricalinsights AT waqasmehmood corruptionsimpactonnonperformingloansofbanksinemergingmarketsempiricalinsights AT ahnafalialsmady corruptionsimpactonnonperformingloansofbanksinemergingmarketsempiricalinsights AT arshiansharif corruptionsimpactonnonperformingloansofbanksinemergingmarketsempiricalinsights |