Title: WHAT DETERMINES THE NON-PERFORMING LOANS RATIO: EVIDENCE FROM TURKISH COMMERCIAL BANKS
Abstract:In this paper I investigate the determinants of non-performing loans (NPLs) ratio for commercial banks in Turkey by incorporating bank specific and macroeconomic variables. I find that banks with a hi...In this paper I investigate the determinants of non-performing loans (NPLs) ratio for commercial banks in Turkey by incorporating bank specific and macroeconomic variables. I find that banks with a higher equity to total assets ratio and a higher net interest margin are expected to have a higher NPLs ratio whereas an increase in net loans to total assets ratio is expected to reduce the NPLs. The results also reveal that public banks and foreign banks are expected to have a higher NPLs ratio. In terms of macroeconomic variables GDP growth shows its effect on NPLs with a lag and a domestic currency depreciation is expected to deteriorate the loan portfolios of commercial banksRead More
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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Cited By Count: 28
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