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The Impact Of Macroeconomic Factors On Non-Performing Loans In The Republic Of Moldova

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  • CLICHICI, Dorina

    (National Institute for Economic Research, Academy of Sciences of Moldova, Chişinău, Republic of Moldova)

  • COLESNICOVA, Tatiana

    (National Institute for Economic Research, Academy of Sciences of Moldova, Chişinău, Republic of Moldova)

Abstract

The purpose of this research is to estimate the impact of several macroeconomic variables on nonperforming loans (NPLs) in the banking sector of the Republic of Moldova recently affected by global crisis. Using econometric multivariate linear regression analysis, we conclude that banking NPLs are affected nor only by distinctive features of the banking sector and the policy choices of each bank but also by macroeconomic environment: NPLs increase when GDP, exports, remittances decrease and when unemployment increases, however, our assumption about the relation between NPLs and private indebtedness has not been validated. We observed a substantial increase in the credit risk during the recent financial crisis period.

Suggested Citation

  • CLICHICI, Dorina & COLESNICOVA, Tatiana, 2014. "The Impact Of Macroeconomic Factors On Non-Performing Loans In The Republic Of Moldova," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 1(1), pages 73-78.
    • Handle: RePEc:vls:rojfme:v:1:y:2014:i:1:p:73-78
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    References listed on IDEAS

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    1. Castro, Vítor, 2013. "Macroeconomic determinants of the credit risk in the banking system: The case of the GIPSI," Economic Modelling, Elsevier, vol. 31(C), pages 672-683.
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    6. Ms. Mwanza Nkusu, 2011. "Nonperforming Loans and Macrofinancial Vulnerabilities in Advanced Economies," IMF Working Papers 2011/161, International Monetary Fund.
    7. Olga Bohachova, 2008. "The Impact of Macroeconomic Factors on Risks in the Banking Sector: A Cross-Country Empirical Assessment," IAW Discussion Papers 44, Institut für Angewandte Wirtschaftsforschung (IAW).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    2. Li Liu & Yu-Min Liu & Jong-Min Kim & Rui Zhong & Guang-Qian Ren, 2020. "Analysis of Tail Dependence between Sovereign Debt Distress and Bank Non-Performing Loans," Sustainability, MDPI, vol. 12(2), pages 1-20, January.
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    6. M. Nurhayati & A. Thoyib & Noermijati & D.W. Irawanto, 2018. "Impersonal Trust and Perceived Organizational Politics on Organizational Commitment," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 391-403.

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    More about this item

    Keywords

    macroeconomic factors; banking system; nonperforming loans;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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