Publish In |
International Journal of Management and Applied Science (IJMAS)-IJMAS |
Journal Home Volume Issue |
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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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