Determinants of Non-Performing Loans: Evidence from Europe

Antonio Salvi, Candida Bussoli, Lavinia Conca and Marisa Gigante

International Journal of Business and Management, 2021, vol. 13, issue 10, 230

Abstract: The issue of banks’ loan quality has assumed growing importance at the international level. This study aims to tackle the issue and to verify the impact of bank-specific determinants and macroeconomic indicators on banks’ loan quality. The analysis is conducted on a sample of 2,816 European banks over the period 2011-2015 through a multivariate regression with panel data. The main evidence shows that a higher return on average assets and a greater soundness of the bank can be associated with a better loan quality. Furthermore, the results also demonstrate that system conditions can contribute to determining banks’ asset quality. Adverse cyclical conditions, resulting from a lower GDP growth and a higher unemployment rate, can generate a lower loan quality.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ccsenet.org/journal/index.php/ijbm/article/download/0/0/36935/37023 (application/pdf)
http://www.ccsenet.org/journal/index.php/ijbm/article/view/0/36935 (text/html)

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:ibn:ijbmjn:v:13:y:2021:i:10:p:230

Access Statistics for this article

More articles in International Journal of Business and Management from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().