| Title |
Key factors of non-performing loans in Baltic and Scandinavian countries: lessons learned in the last decade / |
| Authors |
Kupčinskas, Kazys ; Paškevičius, Arvydas |
| DOI |
10.15388/Ekon.2017.2.10994 |
| Full Text |
|
| Is Part of |
Ekonomika.. Vilnius : Vilniaus universiteto leidykla. 2017, t. 96, nr. 2, p. 43-55.. ISSN 1392-1258. eISSN 2424-6166 |
| Keywords [eng] |
nonperforming ; loans ; credit ; risk |
| Abstract [eng] |
A cross-country panel data regression was performed for non-performing loans (NPL) in Denmark, Estonia, Finland, Latvia, Lithuania and Sweden covering period of years 1998-2014. The main objective was to determine the major factors that were driving the NPL in the selected countries. Also we expected to draw the differences in banking industry between emerging economies in Baltic countries and Western economies in Scandinavian region. The selected variables were banking industry related (net interest margin, ROA, ROE) and macro-economic variables (GDP growth, RE prices, Unemployment) of which majority is included as Financial soundness indicators by IMF. Key findings of the research show that NPL in both regions were mostly dependent on GDP growth and Unemployment, whereas banking industry variable ROA had a very moderate effect only on a country level. The research is contributing to better understanding of financial stability in banking industry during the last decade and also have possible implications for the macro-prudential policy. |
| Published |
Vilnius : Vilniaus universiteto leidykla |
| Type |
Journal article |
| Language |
English |
| Publication date |
2017 |
