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Sustainable development and bank non-performing loans: are they correlated?

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  • Ozili, Peterson K

Abstract

This paper investigates the correlation between banking sector non-performing loans and the level of sustainable development. The findings reveal a significant positive correlation between banking sector non-performing loans and the level of sustainable development measured by the sustainable development index. The significant positive correlation is evident in European countries and in countries in the region of the Americas. There is a significant negative correlation between banking sector non-performing loans and achieving SDG3 and SDG7 in African countries and European countries. There is also a significant negative correlation between non-performing loans and achieving SDG10 in European countries. There is a significant positive correlation between banking sector non-performing loans and achieving SDG4 and SDG7 in the region of the Americas. There is also a significant positive correlation between non-performing loans and achieving SDG10 in African countries and in countries in the region of the Americas.

Suggested Citation

  • Ozili, Peterson K, 2023. "Sustainable development and bank non-performing loans: are they correlated?," MPRA Paper 117807, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117807
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    References listed on IDEAS

    as
    1. Peterson K. Ozili, 2019. "Non-performing loans and financial development: new evidence," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 20(1), pages 59-81, January.
    2. Naqvi, Bushra & Mirza, Nawazish & Rizvi, Syed Kumail Abbas & Porada-Rochoń, Małgorzata & Itani, Rania, 2021. "Is there a green fund premium? Evidence from twenty seven emerging markets," Global Finance Journal, Elsevier, vol. 50(C).
    3. Fernanda Brollo & Emine Hanedar & Mr. Sébastien Walker, 2021. "Pakistan: Spending Needs for Reaching Sustainable Development Goals (SDGs)," IMF Working Papers 2021/108, International Monetary Fund.
    4. Guoxiang Li & Rong Zhang & Suling Feng & Yuqing Wang, 2022. "Digital finance and sustainable development: Evidence from environmental inequality in China," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3574-3594, November.
    5. Lepetit, Laetitia & Strobel, Frank, 2015. "Bank insolvency risk and Z-score measures: A refinement," Finance Research Letters, Elsevier, vol. 13(C), pages 214-224.
    6. Nicolás Gambetta & Fernando Azcárate-Llanes & Laura Sierra-García & María Antonia García-Benau, 2021. "Financial Institutions’ Risk Profile and Contribution to the Sustainable Development Goals," Sustainability, MDPI, vol. 13(14), pages 1-15, July.
    7. Bhutta, Umair Saeed & Tariq, Adeel & Farrukh, Muhammad & Raza, Ali & Iqbal, Muhammad Khalid, 2022. "Green bonds for sustainable development: Review of literature on development and impact of green bonds," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
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    Cited by:

    1. Dhahri, Sabrine & Omri, Anis & Mirza, Nawazish, 2024. "Information technology and financial development for achieving sustainable development goals," Research in International Business and Finance, Elsevier, vol. 67(PA).

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    More about this item

    Keywords

    sustainable development; non-performing loans; sustainable development goals; SDGs; SDG3; SDG4; SDG7; SDG10; sustainable development index; correlation.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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