MACRO AND BANK SPECIFIC DETERMINANTS OF NON-PERFORMING LOANS IN POLISH COMMERCIAL BANKS
Journal
ARGUMENTA OECONOMICA
Date Issued
2021-12
Author(s)
Kjosevski, J.
DOI
10.15611/aoe.2021.2.06
Abstract
The aim of this paper was to examine the determinants of non-performing loans (NPLs) in
Polish commercial banks, and investigate the bank specific and macroeconomic determinants
of NPLs for a panel of 18 banks from Poland, using annual data for the period 2005-2018. The
authors applied four alternative estimation techniques: the fixed effects model, the random
effects model, the difference Generalized Method of Moments and the system Generalized
Method of Moments. The analyses show the bank-specific determinants, with the impact on the
amount of NPLs including greturn on equity and growth of gross loans, while from the
macroeconomic determinants the most important factors are: GDP growth, domestic credit to
private sector, public debt and unemployment.
Polish commercial banks, and investigate the bank specific and macroeconomic determinants
of NPLs for a panel of 18 banks from Poland, using annual data for the period 2005-2018. The
authors applied four alternative estimation techniques: the fixed effects model, the random
effects model, the difference Generalized Method of Moments and the system Generalized
Method of Moments. The analyses show the bank-specific determinants, with the impact on the
amount of NPLs including greturn on equity and growth of gross loans, while from the
macroeconomic determinants the most important factors are: GDP growth, domestic credit to
private sector, public debt and unemployment.
Subjects
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