Enter the e-mail address associated with your account.
Click "send" to have your password e-mailed to you.

Institute of Public Finance

Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License

Determinants of non-performing loans in Central and Eastern European countries

Bruna Škarica, University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia

This paper analyses the determinants of the changes in the non-performing loan (NPL) ratio in selected European emerging markets. The model was estimated on a panel dataset using a fixed effects estimator for seven Central and Eastern European (CEE) countries between Q3:2007 and Q3:2012. The countries analyzed are Bulgaria, Croatia, Czech Republic, Hungary, Latvia, Romania and Slovakia. Although the literature on NPLs is quite extensive, this is the first empirical research on the countries of CEE region using aggregate, country-level data on problem loans. The results suggest that the primary cause of high levels of NPLs is the economic slowdown, which is evident from statistically significant and economically large coefficients on GDP, unemployment and the inflation rate.

Keywords:  non-performing loans ; macro-financial linkages ; Central and Eastern Europe ; panel regressions ; financial stability

Year:  2014   |   Volume:  38   |   Issue:  1   |   Pages:  37 - 59   

Full text (PDF)   |   DOI: 10.3326/fintp.38.1.2   |   E-mail this article   |   Download to citation manager
 March, 2014
I / 2014
EBSCO Publishing
ISSN 1846-887X
e-ISSN 1845-9757
In order to give you a better user experience, cookies have been stored on your computer.
By accessing the website www.fintp.hr the user has given consent to using cookies. More information