Determining Impacts on Non-Performing Loan Ratio in Romania
This paper aims to investigate some of the determinants of non-performing loans in the Romanian banking sector by means of Vector Error Correction (VEC). The increase in non-performing loans is the most relevant factor that financial institutions face in order to maintain an adequate level of solven...
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| Format: | Article |
| Language: | English |
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Editura ASE
2019-05-01
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| Series: | Revista de Management Comparat International |
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| Online Access: | https://www.rmci.ase.ro/no20vol2/05.pdf |
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| author | Adriana Daniela CIUREL Tiberiu STOICA |
| author_facet | Adriana Daniela CIUREL Tiberiu STOICA |
| author_sort | Adriana Daniela CIUREL |
| collection | DOAJ |
| description | This paper aims to investigate some of the determinants of non-performing loans in the Romanian banking sector by means of Vector Error Correction (VEC). The increase in non-performing loans is the most relevant factor that financial institutions face in order to maintain an adequate level of solvency in the context of current economic decline. The objectives of the study presented in this document are to estimate and understand the historical relationships between various macroeconomic factors and the evolution of non-performing loans, in order to facilitate the prediction of future non-performing loans based on macroeconomic forecasts. The conclusions obtained should be taken as guidelines and be the starting point for a reflection that helps to define next steps in the methodological development of planning models as well as in other aspects detailed in the diversification sections and credit management policies. This paper presents in the first place an executive summary of the main conclusions of the study, as well as a reference to the origin of the data used and the methodology applied. In the development of the model, we use public data from the National Bank of Romania, World Bank and the National Institute of |
| format | Article |
| id | doaj-art-beeb80ae454041698f57d7443fa0c635 |
| institution | OA Journals |
| issn | 1582-3458 2601-0968 |
| language | English |
| publishDate | 2019-05-01 |
| publisher | Editura ASE |
| record_format | Article |
| series | Revista de Management Comparat International |
| spelling | doaj-art-beeb80ae454041698f57d7443fa0c6352025-08-20T02:38:36ZengEditura ASERevista de Management Comparat International1582-34582601-09682019-05-0120215517010.24818/RMCI.2019.2.155Determining Impacts on Non-Performing Loan Ratio in Romania Adriana Daniela CIUREL0Tiberiu STOICA1Bucharest Academy of Economic StudiesBucharest Academy of Economic StudiesThis paper aims to investigate some of the determinants of non-performing loans in the Romanian banking sector by means of Vector Error Correction (VEC). The increase in non-performing loans is the most relevant factor that financial institutions face in order to maintain an adequate level of solvency in the context of current economic decline. The objectives of the study presented in this document are to estimate and understand the historical relationships between various macroeconomic factors and the evolution of non-performing loans, in order to facilitate the prediction of future non-performing loans based on macroeconomic forecasts. The conclusions obtained should be taken as guidelines and be the starting point for a reflection that helps to define next steps in the methodological development of planning models as well as in other aspects detailed in the diversification sections and credit management policies. This paper presents in the first place an executive summary of the main conclusions of the study, as well as a reference to the origin of the data used and the methodology applied. In the development of the model, we use public data from the National Bank of Romania, World Bank and the National Institute of https://www.rmci.ase.ro/no20vol2/05.pdfcointegrationvecnon-performing loansinterest ratecredit risk |
| spellingShingle | Adriana Daniela CIUREL Tiberiu STOICA Determining Impacts on Non-Performing Loan Ratio in Romania Revista de Management Comparat International cointegration vec non-performing loans interest rate credit risk |
| title | Determining Impacts on Non-Performing Loan Ratio in Romania |
| title_full | Determining Impacts on Non-Performing Loan Ratio in Romania |
| title_fullStr | Determining Impacts on Non-Performing Loan Ratio in Romania |
| title_full_unstemmed | Determining Impacts on Non-Performing Loan Ratio in Romania |
| title_short | Determining Impacts on Non-Performing Loan Ratio in Romania |
| title_sort | determining impacts on non performing loan ratio in romania |
| topic | cointegration vec non-performing loans interest rate credit risk |
| url | https://www.rmci.ase.ro/no20vol2/05.pdf |
| work_keys_str_mv | AT adrianadanielaciurel determiningimpactsonnonperformingloanratioinromania AT tiberiustoica determiningimpactsonnonperformingloanratioinromania |