Do Macroeconomic Determinants of Non-Performing Loans Vary with the Income Levels of Countries?

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	Do Macroeconomic Determinants of Non-Performing Loans Vary with the Income Levels of Countries?
其他题名	Do Macroeconomic Determinants of Non-Performing Loans Vary with the Income Levels of Countries?
	Koju Laxmi 1; Abbas Ghulam 2; Wang Shouyang 1
	2018
发表期刊	系统科学与信息学报:英文版
ISSN	1478-9906
卷号	000 期号:006 页码:512-531
摘要	This paper explores the macroeconomic determinants of non-performing loans(NPL) in 19 Asian countries(low to high income economies) using the Generalized Method of Moments estimation approach based on the economic data for the period between 1998 and 2015. The categorization of the economies is based on the average gross national income per capita as set by the World Bank.Specifically, the paper aims to evaluate if the determinants of NPL vary with the income levels of the countries. The results indicate that the NPL is strongly influenced by the inflation rate. The effect is,however, negative in the high-income and the middle-income countries and positive in the low-income countries. The GDP per capita has a dynamic negative relationship with the NPL in the high-income and the low-income countries. The remittance has a significant positive association in the high-income and a significant negative association in the low-income countries. Similarly, the unemployment rate has a positive effect on NPL in the middle-income and the low-income countries. With the rise in the official exchange rate, the NPL level increases in the low-income countries. The overall estimation results suggest that the NPL in Asian banking system depend on some key macroeconomic variables,such as unemployment rate, inflation rate, official exchange rate, remittance received and gross domestic product per capita, and these associations vary with the income level of the countries. Therefore,economic level of a country should be carefully considered while formulating credit policy to minimize credit risks in the banking system.
其他摘要	This paper explores the macroeconomic determinants of non-performing loans (NPL) in 19 Asian countries (low to high income economies) using the Generalized Method of Moments estimation approach based on the economic data for the period between 1998 and 2015. The categorization of the economies is based on the average gross national income per capita as set by the World Bank. Specifically, the paper aims to evaluate if the determinants of NPL vary with the income levels of the countries. The results indicate that the NPL is strongly influenced by the inflation rate. The effect is, however, negative in the high-income and the middle-income countries and positive in the low-income countries. The GDP per capita has a dynamic negative relationship with the NPL in the high-income and the low-income countries. The remittance has a significant positive association in the high-income and a significant negative association in the low-income countries. Similarly, the unemployment rate has a positive effect on NPL in the middle-income and the low-income countries. With the rise in the official exchange rate, the NPL level increases in the low-income countries. The overall estimation results suggest that the NPL in Asian banking system depend on some key macroeconomic variables, such as unemployment rate, inflation rate, official exchange rate, remittance received and gross domestic product per capita, and these associations vary with the income level of the countries. Therefore, economic level of a country should be carefully considered while formulating credit policy to minimize credit risks in the banking system.
关键词	dynamic panel economic growth fiscal policy gross national income non-performing loans
收录类别	CSCD
语种	中文
CSCD记录号	CSCD:6383545
引用统计
文献类型	期刊论文
条目标识符	http://ir.amss.ac.cn/handle/2S8OKBNM/54264
专题	中国科学院数学与系统科学研究院
作者单位	1.中国科学院数学与系统科学研究院 2.中国科学院
推荐引用方式 GB/T 7714	Koju Laxmi,Abbas Ghulam,Wang Shouyang. Do Macroeconomic Determinants of Non-Performing Loans Vary with the Income Levels of Countries?[J]. 系统科学与信息学报:英文版,2018,000(006):512-531.
APA	Koju Laxmi,Abbas Ghulam,&Wang Shouyang.(2018).Do Macroeconomic Determinants of Non-Performing Loans Vary with the Income Levels of Countries?.系统科学与信息学报:英文版,000(006),512-531.
MLA	Koju Laxmi,et al."Do Macroeconomic Determinants of Non-Performing Loans Vary with the Income Levels of Countries?".系统科学与信息学报:英文版 000.006(2018):512-531.