EVOLUTION OF NON-PERFORMING LOANS IN THE EUROPEAN UNION AND ROMANIA

Cãtãlin Emilian HUIDUMAC Petrescu and Adelina Elena Stan

Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, 2019, vol. 13, issue 1, 238-247

Abstract: The financial crisis caused the debtors’ inability to repay their loans, which led to an increase in the level of non-performing loans (NPLs). The high stock of non-performing loans prejudice to the performance of commercial banks by generating a low level of income, reducing their profitability and decreasing the capital levels. Amid this development, during the post-crisis period, one of the main objectives of the banking sector, both at European Union and national level is to eliminate the potential risks by decreasing the rate of NPLs. This paper seeks to perform an analysis of the evolution of NPLs, and also highlighting the main tools used by commercial banks and central authorities to diminish the level and the impact of such credits.

Keywords: non-performing loans; NPLs rate; commercial banks; provisions; credit restructuring rate (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:rom:mancon:v:13:y:2019:i:1:p:238-247

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