EconPapers    
Economics at your fingertips  
 

Industry Specific Shocks and Non-Performing Loans in Barbados

Anton Belgrave, Kester Guy and Mahalia Jackman

The Review of Finance and Banking, 2012, vol. 04, issue 2, 123-133

Abstract: Despite the vast body of literature on the relationship between the macroeconomic environment and non-performing loans (NPLs), an area which has been neglected thus far, is a comparative study of the response of NPLs to industry-specific income shocks. Using panel VAR methods, this study investigates the sensitivity of NPLs to shocks to six industries in Barbados. The results suggest that there is some degree of heterogeneity in the response of NPL to these shocks. For instance, there is no evidence to suggest that shocks to the agriculture and manufacturing sectors — the two smallest sectors — affect NPLs. In contrast, our results suggest that positive shocks to the output of the distribution, professional and tourism industries lead to an overall reduction in the level of stress in the financial system — though the timing of responses differs across each industry.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.rfb.ase.ro/articole/Article4.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:rfb:journl:v:04:y:2012:i:2:p:123-133

Access Statistics for this article

The Review of Finance and Banking is currently edited by Victor Dragota; Bogdan Negrea

More articles in The Review of Finance and Banking from Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante Strada Mihai Eminescu nr.13-15, sector 1, Bucuresti, Romania. Contact information at EDIRC.
Series data maintained by Tatu Lucian ().

 
Page updated 2017-08-11
Handle: RePEc:rfb:journl:v:04:y:2012:i:2:p:123-133