MACROECONOMIC FACTORS OF NON-PERFORMING LOANS: THE CASE OF BOSNIA AND HERZEGOVINA

Ante Dzidic (), Igor Zivko () and Anela Colak ()
Additional contact information
Ante Dzidic: University of Mostar, Faculty of Economics, Mostar, Bosnia and Herzegovina
Igor Zivko: University of Mostar, Faculty of Economics, Mostar, Bosnia and Herzegovina
Anela Colak: University of Mostar, Faculty of Economics, Mostar, Bosnia and Herzegovina

Economic Thought and Practice, 2022, vol. 31, issue 2, 421-438

Abstract: This paper examines the key macroeconomic factors of non-performing loans (NPLs) in the banking sector of Bosnia and Herzegovina. The research is conducted on quarterly time series data within the period from 2005 to 2019. The autoregressive distributed lag (ARDL) approach is used to model the long-run and short-run relationship between macroeconomic time series. The research results show that increase in real GDP is associated with decrease in NPLs, while rising unemployment and consumer prices are correlated with higher levels of NPLs at 5% significance level.

Keywords: non-performing loans; credit risk; factors (search for similar items in EconPapers)
JEL-codes: E44 E51 G21 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hrcak.srce.hr/index.php/clanak/415997 (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: https://EconPapers.repec.org/RePEc:avo:emipdu:v:31:y:2022:i:2:p:421-438

Ordering information: This journal article can be ordered from
Economic Thought and Practice, University of Dubrovnik, Branitelja Dubrovnika 29, 20000 Dubrovnik
https://emip.unidu.hr/

DOI: 10.17818/EMIP/2022/2.4

Access Statistics for this article

Economic Thought and Practice is currently edited by Nebojsa Stojcic

More articles in Economic Thought and Practice from Department of Economics and Business, University of Dubrovnik Contact information at EDIRC.
Bibliographic data for series maintained by Nebojsa Stojcic ().