EconPapers    
Economics at your fingertips  
 

Factor Analysis of Credit Risk in Romania

Simona Apostu

Ovidius University Annals, Economic Sciences Series, 2017, vol. XVII, issue 2, 499-504

Abstract: All lending institution is confronted with credit risk and therefore assumes it. So it is necessary to analyze the dynamics of credit risk, the effects on profitability, capital adequacy and, very important, but also difficult to quantify, the general trust in the institution (Berríos M.R., 2013). In order to assess the correlations between credit risk and other financial variables, a database was created in SPSS program packages and the factor analysis was performed. The analysed variables are: Credit Risk Rate, Economic Profitability, Non-performing Loans, Rate of Return, Leverage Effect, Solvency Ratio and Return on Equity (Pinches, 1973). It was established that for Romania for the analysed period are strong correlations between all variables analyzed.

Keywords: credit risk; solvency; equity; leverage; principal component analysis (search for similar items in EconPapers)
JEL-codes: C58 E51 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://stec.univ-ovidius.ro/html/anale/RO/2017-2/Section%20V/2.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:ovi:oviste:v:xvii:y:2017:i:2:p:499-504

Access Statistics for this article

Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela

More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Gheorghiu Gabriela ().

 
Page updated 2022-06-20
Handle: RePEc:ovi:oviste:v:xvii:y:2017:i:2:p:499-504