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Non-Performing loans, financial stability, and banking competition: evidence for listed and non-listed Eurozone banks

Author

Listed:
  • José Manuel Mansilla-Fernández

    (Universidad Pública de Navarra)

Abstract

This article analyses the effects of non-performing loans (NPLs hereafter) and financial (in)stability on banking competition in the Eurozone lending markets. Our results suggest that NPLs increase margin¬al costs and the degree of competition in banking markets. This phenomenon is economically more significant for non-listed than for listed banks. The results are robust to any endogeneity due to the impact of the economic downturn and the sovereign debt crisis on the growth of NPLs.

Suggested Citation

  • José Manuel Mansilla-Fernández, 2020. "Non-Performing loans, financial stability, and banking competition: evidence for listed and non-listed Eurozone banks," Hacienda Pública Española / Review of Public Economics, IEF, vol. 232(1), pages 29-52, March.
    • Handle: RePEc:hpe:journl:y:2020:v:232:i:1:p:29-52
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    More about this item

    Keywords

    Bank competition; banking and financial crisis; listed banks; NPLs; sovereign debt crisis.;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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