IDEAS home Printed from https://ideas.repec.org/a/ora/journl/v1y2010i2p777-782.html
   My bibliography  Save this article

Study Of Correlation Between Average Interest Rate And Non-Performing Loans In The Romanian Banking System During 2006- February 2010

Author

Listed:
  • Socol Adela
  • Iuga Iulia

    (Universitatea , Facultatea de Stiinte)

Abstract

This paper aims to examine the correlation between average interest rate and non-performing loans in the Romanian banking system during 2006-February 2010. We based our approach on the Pearson correlation coefficient and we realized an empirical study, which demonstrates how these relevant banking elements are connected. Also, the result of this research suggests that there are other indirect channels which affect the non-performing loans.

Suggested Citation

  • Socol Adela & Iuga Iulia, 2010. "Study Of Correlation Between Average Interest Rate And Non-Performing Loans In The Romanian Banking System During 2006- February 2010," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 777-782, December.
    • Handle: RePEc:ora:journl:v:1:y:2010:i:2:p:777-782
    as

    Download full text from publisher

    File URL: http://anale.steconomiceuoradea.ro/volume/2010/n2/123.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Maximilian Hall, 2000. "What is the Truth About the Scale of Japanese Banks' Bad Debts? Is the Situation Manageable?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 17(1), pages 69-91, February.
    2. Alpa Dhanani & Suzanne Fifield & Christine Helliar & Lorna Stevenson, 2008. "The management of interest rate risk: evidence from UK companies," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 9(1), pages 52-70, June.
    3. Arindam Bandyopadhyay & Tasneem Chherawala & Asish Saha, 2007. "Calibrating asset correlation for Indian corporate exposures: Implications for regulatory capital," Journal of Risk Finance, Emerald Group Publishing, vol. 8(4), pages 330-348, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elona Shehu & Elona Meka, 2015. "NPLs — The Solution Recipe for Albania," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 1, September.
    2. Iulia Iuga & Ruxandra Lazea, 2012. "Study Regarding The Influence Of The Unemployment Rate Over Non-Performing Loans In Romania Using The Correlation Indicator," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(14), pages 1-18.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bandyopadhyay, Arindam, 2011. "Internal Assessment of Credit Concentration Risk Capital: A Portfolio Analysis of Indian Public Sector Bank," MPRA Paper 28672, University Library of Munich, Germany.
    2. Yuan George Shan & Lei Xu, 2012. "Bad debt provisions of financial institutions," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 8(4), pages 344-364, September.
    3. Wagner, Stephan M. & Bode, Christoph & Koziol, Philipp, 2011. "Negative default dependence in supplier networks," International Journal of Production Economics, Elsevier, vol. 134(2), pages 398-406, December.
    4. Drake, Leigh & Hall, Maximilian J. B., 2003. "Efficiency in Japanese banking: An empirical analysis," Journal of Banking & Finance, Elsevier, vol. 27(5), pages 891-917, May.
    5. Pankaj Baag, 2014. "Predicting The Probability Of Default Using Asset Correlation Of A Loan Portfolio," Working papers 151, Indian Institute of Management Kozhikode.
    6. Wong, Weng Kei, 2019. "Company Performance of Kotra Pharma (M) Sdn Bhd under The Internal and External Factors," MPRA Paper 97170, University Library of Munich, Germany.
    7. Camilla Ferretti & Giampaolo Gabbi & Piero Ganugi & Federica Sist & Pietro Vozzella, 2019. "Credit Risk Migration and Economic Cycles," Risks, MDPI, vol. 7(4), pages 1-18, October.
    8. Bandyopadhyay, Arindam & Ganguly, Sonali, 2011. "Empirical estimation of default and asset correlation of large corporates and banks in India," MPRA Paper 33057, University Library of Munich, Germany.
    9. Drake, Leigh & Hall, Maximilian J.B. & Simper, Richard, 2009. "Bank modelling methodologies: A comparative non-parametric analysis of efficiency in the Japanese banking sector," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 19(1), pages 1-15, February.
    10. Bandyopadhyay, Arindam, 2010. "Understanding the Effect of Concentration Risk in the Banks’ Credit Portfolio: Indian Cases," MPRA Paper 24822, University Library of Munich, Germany.
    11. Richa Verma Bajaj, 2018. "Credit Risk Capital Estimation Under IRB Approach for Banks in India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(2), pages 475-500, June.
    12. Adela Socol & Adina Dănuleţiu & Mihaela Aldea, 2009. "An Empirical Study Of Correlation Between Net Assets And Own Funds In The Romanian Banking System During 2001-2008," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(11), pages 1-48.

    More about this item

    Keywords

    Pearson correlation coeficient; Non-performing loans; Average interest rate; Credit-risk provisions;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    Statistics

    Access and download statistics

    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:ora:journl:v:1:y:2010:i:2:p:777-782. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catalin ZMOLE (email available below). General contact details of provider: https://edirc.repec.org/data/feoraro.html .

    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.