IDEAS home Printed from https://ideas.repec.org/a/ids/injbaf/v13y2022i1p1-31.html
   My bibliography  Save this article

Borrower characteristics and loan performance: evidence from micro and small Greek firms

Author

Listed:
  • Vasileios Giannopoulos
  • Eleftherios Aggelopoulos
  • Antonios Georgopoulos

Abstract

Using a unique dataset of 3,294 micro and small enterprise loans granted before the recession by one of the four systemic banks in Greece, this study identifies diverse borrower-specific characteristics of these loans that transformed into non-performing loans (NPLs) during the recession. Also, we capture how their impact on NPLs changes as recession escalates. More detailed, we find that homeownership, the bank deposit relationship, the existence of own facilities, the business equipment lending purpose, and the cash loan collateral are crucial factors for NPL avoidance in recession years. In contrast, high levels of loan to turnover ratio and the age of the firm's owner seem to increase substantially the delinquency risk. The paper provides originality as it explicitly utilises primary micro-specific information substantially differing from the related literature that utilises aggregated, macroeconomic data, with important implications for policymakers and bank staff regarding lending and repayment policies.

Suggested Citation

  • Vasileios Giannopoulos & Eleftherios Aggelopoulos & Antonios Georgopoulos, 2022. "Borrower characteristics and loan performance: evidence from micro and small Greek firms," International Journal of Banking, Accounting and Finance, Inderscience Enterprises Ltd, vol. 13(1), pages 1-31.
    • Handle: RePEc:ids:injbaf:v:13:y:2022:i:1:p:1-31
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=121547
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:injbaf:v:13:y:2022:i:1:p:1-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=277 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.