DOIONLINE

DOIONLINE NO - IJMAS-IRAJ-DOIONLINE-12441

Publish In
International Journal of Management and Applied Science (IJMAS)-IJMAS
Journal Home
Volume Issue
Issue
Volume-4,Issue-5  ( May, 2018 )
Paper Title
Macroeconomic Determinants of Non-Performing Loans: Evidence from Turkish Banking Sector
Author Name
Fethullah Sahin, Muhittin Kaplan, Erhan Cankal
Affilition
Department of Banking and Finance, Ankara Yildirim Beyazit University, Ankara, Turkey Department of Economics, Istanbul University, Istanbul, Turkey Department of Banking and Finance, Ankara YildirimBeyazit University Ankara, Turkey
Pages
81-87
Abstract
This paper analyzes the macroeconomic determinants of credit risk (i.e., non-performing loans) in the Turkish banking sector over the period 2002 and 2015. By using data from 23 commercial banks, the study conducts a panel data analysis via pooled-OLS, fixed effects and random effects and finds evidence for a statistically significant relation between macroeconomic factors and credit risk. Accordingly, increase in growth rate of GDP (business cycle) and stock market index (BIST 100) decrease the level of non-performing loans. Keywords - Credit risk, macroeconomic factors, panel data.
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