Non performing loans - its causes, consequences and some learning

Mohammad Shofiqul Islam, Nikhil Shil and Md. Abdul Mannan

MPRA Paper from University Library of Munich, Germany

Abstract: Investment in productive sector is the precondition for achieving the economic growth from a country perspective. Capital formation positively supports this investment function. Once a satisfactory level of capital is formed, the option of sound investment comes that ultimately leads to flow additional capital in future. The financial institutions, mainly banks, do these functions. In countries like ours, investment leakage in the form of non-functionalities poses a great threat on the sound running of this ‘capital formation – investment – capital formation’ process. This paper deals with non performing loan situations, basically the causes and consequences of this economic devil that is very much embedded in current economic structure. The possible steps are also pointed out to handle such situation.

Keywords: capital formation; workout; LRA; recovery agency (search for similar items in EconPapers)
JEL-codes: H81 (search for similar items in EconPapers)
Date: 2005-12-31, Revised 2005-08-14
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Stamford Journal of Business Studies Issue 2.Volume(2005): pp. 100-116

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:7708

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