Bank specific, business and institutional environment determinants of banks nonperforming loans : evidence from mena countries
Joint Authors
Boudringa, Abd Al-Qadir
Taktak, Neila Boulila
Jellouli, Sana
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2010, Issue 538-585 (31 Dec. 2010), pp.1-25, 25 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2010-12-31
Country of Publication
Egypt
No. of Pages
25
Main Subjects
Financial and Accounting Sciences
Topics
Abstract EN
The paper empirically analyzes the determinants of nonperforming loans (NPL) and the potential impact of both business and institutional environment on credit risk exposure of banks in the MENA region.
Looking at a sample of 46 banks in 12 countries over the period 2002–2006, we find that, among bank specific factors, foreign participation coming from developed countries, high credit growth and loan loss provisions reduce the NPL level. However, highly capitalized banks experience high level of credit exposure.
Credit quality of banks is also positively affected by the relevance of the information published by public and private bureaus.
Finally, our findings highlight the importance of institutional environment in enhancing banks credit quality.
Specifically, a better control of corruption, a sound regulatory quality, a better enforcement of rule of law, and a free voice and accountability play an important role in reducing NPL in the MENA countries.
American Psychological Association (APA)
Boudringa, Abd Al-Qadir& Taktak, Neila Boulila& Jellouli, Sana. 2010. Bank specific, business and institutional environment determinants of banks nonperforming loans : evidence from mena countries. Economic Research Forum : Working Paper Series،Vol. 2010, no. 538-585, pp.1-25.
https://search.emarefa.net/detail/BIM-154280
Modern Language Association (MLA)
Boudringa, Abd Al-Qadir…[et al.]. Bank specific, business and institutional environment determinants of banks nonperforming loans : evidence from mena countries. Economic Research Forum : Working Paper Series No. 538-585 (2010), pp.1-25.
https://search.emarefa.net/detail/BIM-154280
American Medical Association (AMA)
Boudringa, Abd Al-Qadir& Taktak, Neila Boulila& Jellouli, Sana. Bank specific, business and institutional environment determinants of banks nonperforming loans : evidence from mena countries. Economic Research Forum : Working Paper Series. 2010. Vol. 2010, no. 538-585, pp.1-25.
https://search.emarefa.net/detail/BIM-154280
Data Type
Journal Articles
Language
English
Notes
Includes appendices : p. 17-25
Record ID
BIM-154280