Bibliometric and statistical approaches to examining non-performing loans in the Eurozone

Being part of an integration of countries offers advantages such as shared benefits among nations but also exposes economies to the potential unfavourable effects across the entire region. In the context of the Eurozone, non-performing loans (NPLs) play a crucial role as they reflect the health of member countries' banking sectors under a shared monetary policy. This study delves into the multifaceted determinants influencing NPLs within the dynamic landscape of Euro area countries during the period from 1999 to 2021. To conduct a comprehensive examination of this issue, we employed bibliometric analysis of co-occurring keywords using the VOSviewer software to explore which determinants were relevant to the topic. Then, we examine selected bank-specific and macroeconomic determinants through panel data analysis. Following the exploration of the determinants, the aim of the study is to analyse the factors influencing NPLs within the Eurozone context and to assess their implications for the stability and resilience of the banking sector. By compiling four different models, the results indicate interest rate as a key indicator influencing the non-performing loan ratio (NPLR), with other determinants explored and compared to findings from other studies.