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- Title
Macroeconomic and Bank-Specific Determinants of Non-Performing Loans for Jordanian Banks: The Effect of COVID-19.
- Authors
Al Salamat, Wasfi; Khatatbeh, Ibrahim N.
- Abstract
Non-performing loans ratio, as a proxy of banks' credit risk, and its impact on banks' performance and financial stability as well as its bad effect on the entire economy is a main concern for many researchers. Therefore, this study aims at exploring the factors affecting the non-performing loans ratio in the context of Jordan by using balanced panel data OLS regression analysis taking into consideration the effect of COVID-19 pandemic. The results report that the nonperforming loans ratio is negatively affected by return on assets, gross domestic product (GDP), and stock market index, while positively affected by previous non-performing loans ratio and COVID-19. Banks managers', policy makers, regulatory bodies can depend on the findings of this study in developing polices to overcome the negative effect of some factors and adopting polices to enhance the positive effect of others.
- Subjects
NONPERFORMING loans; BANK loans; COVID-19; FINANCIAL performance; CREDIT risk; COVID-19 pandemic
- Publication
Journal of Economic Cooperation & Development, 2023, Vol 44, Issue 4, p1
- ISSN
1308-7800
- Publication type
Article