What Triggers Loan Losses? An Empirical Investigation of Greek Financial Sector

Vasiliki Makri ()
Additional contact information
Vasiliki Makri: Research Associate, Department of Business Administration, University of Patras

SPOUDAI Journal of Economics and Business, 2015, vol. 65, issue 3-4, 119-143

Abstract: The aim of this study is to investigate which factors influence loan quality in Greece. In this context, it is examined the effect of various accounting and macroeconomics indices to loans loss provisions (LLP) and loans loss reserves (LLR) ratios. The empirical analysis is carried out at both individual bank and banking system level data by using dynamic regression techniques. The findings extend the existing literature and confirm all the examined hypotheses, since macroeconomic environment (unemployment, public debt, economic growth and inflation) and accounting factors (past performance of loan quality, capital adequacy, liquidity and profitability) seem to influence credit risk in Greece.

Keywords: Credit Risk; Loan Quality; Loan Loss Provisions; Loan Loss Reserves; Accounting Factors; Macroeconomic Factors. (search for similar items in EconPapers)
JEL-codes: G21 M41 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://spoudai.unipi.gr/index.php/spoudai/article ... 5/1356-1829-1-SM.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:spd:journl:v:65:y:2015:i:3-4:p:119-143

Access Statistics for this article

More articles in SPOUDAI Journal of Economics and Business from SPOUDAI Journal of Economics and Business, University of Piraeus Contact information at EDIRC.
Bibliographic data for series maintained by SPOUDAI Journal of Economics and Business ().