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Macroeconomic Factors Of Non-Performing Loans: The Case Of Bosnia And Herzegovina

Author

Listed:
  • Ante Dzidic

    (University of Mostar, Faculty of Economics, Mostar, Bosnia and Herzegovina)

  • Igor Zivko

    (University of Mostar, Faculty of Economics, Mostar, Bosnia and Herzegovina)

  • Anela Colak

    (University of Mostar, Faculty of Economics, Mostar, Bosnia and Herzegovina)

Abstract

This paper examines the key macroeconomic factors of non-performing loans (NPLs) in the banking sector of Bosnia and Herzegovina. The research is conducted on quarterly time series data within the period from 2005 to 2019. The autoregressive distributed lag (ARDL) approach is used to model the long-run and short-run relationship between macroeconomic time series. The research results show that increase in real GDP is associated with decrease in NPLs, while rising unemployment and consumer prices are correlated with higher levels of NPLs at 5% significance level.

Suggested Citation

  • Ante Dzidic & Igor Zivko & Anela Colak, 2022. "Macroeconomic Factors Of Non-Performing Loans: The Case Of Bosnia And Herzegovina," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 31(2), pages 421-438, december.
    • Handle: RePEc:avo:emipdu:v:31:y:2022:i:2:p:421-438
    DOI: 10.17818/EMIP/2022/2.4
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    non-performing loans; credit risk; factors;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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