Determinants of Non-Performing Loans: Evidence from Euro-Area Countries

Posted: 19 Aug 2016

See all articles by Dimitrios Anastasiou

Dimitrios Anastasiou

Athens University of Economics and Business, School of Business, Department of Accounting and Finance; Athens University of Economics and Business - Department of Economics

Helen Louri

Athens University of Economics and Business - Department of Economics

Efthymios G. Tsionas

Lancaster University

Date Written: August 18, 2016

Abstract

The objective of this paper is to identify the main determinants of non-performing loans in the euro-area banking system for the period 1990Q1-2015Q2 using GMM estimations. On top of the bank- and country-specific variables proposed by the literature the roles of income tax and output gap are for the first time examined and found to be significant. Our results could be helpful when designing macro-prudential and fiscal policies.

Keywords: Non-performing loans, Macroeconomic determinants, Bank-specific determinants, GMM estimation

JEL Classification: C23, C51, G21, G2

Suggested Citation

Anastasiou, Dimitrios and Louri, Eleni (Helen) and Tsionas, Efthymios G., Determinants of Non-Performing Loans: Evidence from Euro-Area Countries (August 18, 2016). Finance Research Letters, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2825906

Dimitrios Anastasiou

Athens University of Economics and Business, School of Business, Department of Accounting and Finance ( email )

76 Patission Street
GR-104 34 Athens
Greece

Athens University of Economics and Business - Department of Economics ( email )

76 Patission Street
GR-10434 Athens
Greece

Eleni (Helen) Louri (Contact Author)

Athens University of Economics and Business - Department of Economics ( email )

76 Patission Street
GR-10434 Athens
Greece
+30 1 8203122 (Phone)
+30 1 8238249 (Fax)

Efthymios G. Tsionas

Lancaster University ( email )

Lancaster LA1 4YX
United Kingdom

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