Suchergebnisse

Islamic banking still has a high ratio of non-performing financing. This study analyzes the causes of non-performing financing, along with the prevention effectiveness and resolution strategies performed by Islamic banks in dealing with this problem. Interviews conducted on nine informants, with questionnaires distributed to 30 respondents. The results show that the prevention effectiveness performed by Islamic banks consists of legal aspects, qualified human resources, and criteria assessment used to finance proposals, and improve risk management. Furthermore, internal factors such as default, information asymmetry, and financial stress were attributes of non-performing financing, which is externally influenced by inflation, GDP decline, natural disasters, interest rates, and political criminality.JEL Classification: G21, G32

One of the important problem faced by the banking sector in India is the increase in the amount of Non Performing Assets (NPA). NPA are the assets which will not generate income in the form of interest and principal amount to banks. The NPA affects both the financial system and the economy. The competitiveness, profitability and capital adequacy will be affected by the increase in the NPA of banks. The present study examines the extent of NPA of scheduled commercial banks in India since 1997-98.The public sector banks in India have the highest GNPA ratio. In most of the banks the growth rate of NPA is higher than the gross advances. The non priority sector and credit provided to the large borrowers have high NPA. The RBI and government of India have introduced various recovery methods. A

In this study, new determinants of non-performing loans (NPL) for the MSCI emerging countries were investigated. For this purpose, a new index was formed using the World Bank's Worldwide Governance Indicator data from 2002 to 2018. To test the effect of governance on NPL, we used the GMM technique. As a robustness test for GMM results, we employed the DOLSMG technique. According to the results, NPL was affected negatively by the governance index. This result could be of interest to policymakers and regulators as a macroprudential policy tool. ; Bu çalışmada MSCI gelişmekte olan ülkeler için devam etmeyen kredilerin (NPL) yeni belirleyicileri araştırılmıştır. Bu amaçla, Dünya Bankası'nın 2002-2018 yılları arasında dünya çapında yönetişim göstergesi verileri kullanılarak yeni bir endeks oluşturulmuştur. Yönetişimin NPL üzerindeki etkisini test etmek için GMM tekniğini kullandık. GMM sonuçları için sağlamlık testi olarak DOLSMG tekniğini kullandılar. Sonuçlara göre, NPL yönetişim endeksi tarafından olumsuz etkilendi. Bu sonuç, makro izdifalı bir politika aracı olarak politika yapıcıların ve düzenleyicilerin ilgisini çekebilir.

This study aimed at examining the determinant of non-performing loans in the development bank of Ethiopia. Other objectives included determining bank-specific and macroeconomic factors for default loan performance. Based on Development Bank of Ethiopia (DBE) reports from 1990-2019 there was an increase in NPLs during the studied period. Due to this, the performance of the bank is highly affected and the bank leads to insolvency. The thesis aimed to determine determinants of non-performing loans in DBE by determining theoretical and empirical evidence that help answer the research objective. The study used an explanatory design and a mixed research approach. The primary data by interviewing the staff of DBE those who were senior credit officers and team managers. And the secondary data was obtained from the bank's annual financial performance report and the National Bank's annual report for thirty consecutive fiscal periods from 1990 up to 2019. This study used an autoregressive distributed lag (ARDL) model or Bound Testing approach to co-integration. Non-performing loan ratio was taken as the dependent variable while Return on asset (earning capacity), liquidity, capital adequacy, bank size, exchange rate, lending rate (interest rate), inflation, and GDP have been taken as independent variables. The study found that there was a significant negative relationship between earning ability (ROA), Interest rate, Gross domestic products, inflation rate, and nonperforming loans of development banks of Ethiopia. The relationship between bank size and liquidity with non-performing loans was found to be positive. In addition to bank-specific factors and macroeconomic variables related to variables such Bank lends by the project itself as collateral with small lending rate relatively other commercial banks of the country, a long delay on implantation, poor known your customer assessment, political and social instability, inadequate coordination among stakeholder, governance, and structure, excessive external intervention The implications of the study suggest that Development Bank of Ethiopia should modified business model, bank credit policy-related issue such as appropriateness, timelines risk management and alignment with the current political macroeconomic realities, the bank should regulating interference of government bodies on loan approval, processes, and implementation, the bank should reduce project delays.

The purpose of the present study is to identify the factors affecting the
non-performing loans rate (NPL) of Eurozone?s banking systems for the period
2000-2008, just before the beginning of the recession. In our days, Eurozone
is in the middle of an unprecedented financial crisis, calling into question
the soundness of the banking systems of European countries. Looking at both
macro-variables (e.g. annual percentage growth rate of gross domestic
product, public debt as % of gross domestic product, unemployment) and
micro-variables (e.g. loans to deposits ratio, return on assets, return on
equity), we investigate which factors determine NPL on aggregate level.
Overall, our findings reveal strong correlations between NPL and various
macroeconomic (public debt, unemployment, annual percentage growth rate of
gross domestic product) and bank-specific (capital adequacy ratio, rate of
nonperforming loans of the previous year and return on equity) factors.

In this paper, utilising the endogenous growth model, we assess the joint long-run determination of economic growth by non-performing loans (NPLs) and by other factors that include bank credit to the economy, gross secondary school enrolment, government expenditure growth rate and the inflation rate in Nigeria using the bank-based approach. The quarterly data sample is between 1998 and 2014. We incorporate the NPLs level in a multivariate model using the ARDL procedure. The results from the bound test suggest the existence of long-run co-movement of these variables and economic growth. All variables in the model are statistically significant in the long run. The NPLs level and bank credit to the economy were found to have a negative and a direct impact on economic growth respectively. On the whole, financial pollution (NPLs) and positive financial utility (from bank credit to the economy) show a remarkable impact of financial development on economic growth in Nigeria. The error correction mechanism shows a very slow restoration to equilibrium in the next period once the system is distorted. The study recommends a higher level of proactive policies both to curb the growth of NPLs and to drive credit by banks to the economy's private sector.