WHAT DETERMINES THE NON-PERFORMING LOANS RATIO: EVIDENCE FROM TURKISH COMMERCIAL BANKS

Fatih Macit

Journal Articles, 2012, 33-39

Abstract: In this paper I investigate the determinants of non-performing loans (NPLs) ratio for commercial banks in Turkey by incorporating bank specific and macroeconomic variables. I find that banks with a higher equity to total assets ratio and a higher net interest margin are expected to have a higher NPLs ratio whereas an increase in net loans to total assets ratio is expected to reduce the NPLs. The results also reveal that public banks and foreign banks are expected to have a higher NPLs ratio. In terms of macroeconomic variables GDP growth shows its effect on NPLs with a lag and a domestic currency depreciation is expected to deteriorate the loan portfolios of commercial banks.

Keywords: Non-performing Loans; Turkish Banking Sector (search for similar items in EconPapers)
JEL-codes: E44 G21 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://journal.cea.org.mk/files/journals/1/articles/6/public/6-23-1-PB.pdf (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:cmk:journl:y:2012:p:33-39

Access Statistics for this article

More articles in Journal Articles from Center For Economic Analyses Contact information at EDIRC.
Bibliographic data for series maintained by Marjan Nikolov ().