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External deficits and non-performing loans in the recent financial crisis

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  • Kauko, Karlo

Abstract

This paper analyses the deterioration of bank credit quality during the recent financial crisis in a cross-national sample. Rapid credit growth in 2000–2005 predicted the relative amount of non-performing loans only if it was combined with a current account deficit.

Suggested Citation

  • Kauko, Karlo, 2012. "External deficits and non-performing loans in the recent financial crisis," Economics Letters, Elsevier, vol. 115(2), pages 196-199.
    • Handle: RePEc:eee:ecolet:v:115:y:2012:i:2:p:196-199
    DOI: 10.1016/j.econlet.2011.12.018
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    References listed on IDEAS

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    More about this item

    Keywords

    Non-performing loans; Early warning signals; Financial crisis;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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