Design of a Financial Database for Storing Financial Statements’ Data
Journal
Proceedings of the XII International Conference on Economy, Business & Society in Digitalized Environment (EBSiDE 2022)
Date Issued
2022-09-23
Author(s)
Hristoski, Ilija
Spaseska, Tatjana
Odzaklieska, Dragica
Dimovski, Tome
Abstract
One of the main indicators of the banks’ financial performance is nonperforming loans. The level and dynamics of the non-performing loans mean
facing the direct consequences of credit risk. Namely, the problem with the nonperforming loans leads to greater restriction of the banks’ performance on the
credit market, thus limiting investments and consumption, and threatening
economic growth and even financial stability. Accordingly, to manage nonperforming loans efficiently, it is crucial to analyze their determinants. The main
objective of the study is to examine the macroeconomic determinants of nonperforming loans in the Republic of North Macedonia for the period from 2006 to
2021. The study is based on a time series analysis of secondary data obtained
from reports issued by relevant institutions, through the development of an AutoRegressive Distributed Lag (ARDL) model, to investigate the dependence of nonperforming loans to total loans ratio as a target variable on several
macroeconomic variables/regressors such as GDP growth rate, inflation rate,
unemployment rate, loans interest rate, exchange rate, and gross loans to GDP
ratio. The results show that, in a long run, all the regressors have a statistically
insignificant impact on the target variable; only the exchange rate negatively
affects the target variable, whilst all other regressors have a positive impact on it.
facing the direct consequences of credit risk. Namely, the problem with the nonperforming loans leads to greater restriction of the banks’ performance on the
credit market, thus limiting investments and consumption, and threatening
economic growth and even financial stability. Accordingly, to manage nonperforming loans efficiently, it is crucial to analyze their determinants. The main
objective of the study is to examine the macroeconomic determinants of nonperforming loans in the Republic of North Macedonia for the period from 2006 to
2021. The study is based on a time series analysis of secondary data obtained
from reports issued by relevant institutions, through the development of an AutoRegressive Distributed Lag (ARDL) model, to investigate the dependence of nonperforming loans to total loans ratio as a target variable on several
macroeconomic variables/regressors such as GDP growth rate, inflation rate,
unemployment rate, loans interest rate, exchange rate, and gross loans to GDP
ratio. The results show that, in a long run, all the regressors have a statistically
insignificant impact on the target variable; only the exchange rate negatively
affects the target variable, whilst all other regressors have a positive impact on it.
Subjects
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