scholarly journals MACROECONOMIC FACTORS OF NON-PERFORMING LOANS IN COMMERCIAL BANKS

Ekonomika ◽  
2014 ◽  
Vol 93 (1) ◽  
pp. 22-39 ◽  
Author(s):  
Ričardas Mileris
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Economic Conditions ◽  
Macroeconomic Factors ◽  
Eu Countries ◽  
Developed Economies ◽  
Economic Downturns ◽  
Macroeconomic Indicators ◽  
The Business Cycle ◽  
The Eu

Abstract. This article presents an analysis of macroeconomic factors and their impact on the percentage of non-performing loans (NPLs) in commercial banks of the EU countries. This problem is relevant because in recent years many EU countries had the economic downturns that can be visible in the main macroeconomic indicators. Also, banks have met the growth of non-performing loans when the debtors were not able to meet their financial obligations. The Basel III Agreement notes the necessity to consider the economic conditions of a country when assessing the credit risk of loan applicants. The results of this research can be useful for banks, because the main relations between macroeconomics and non-performing loans have been revealed. Since 2009, Lithuania has one of the highest NPL percentage in the EU, and the meaningful impact of economic deterioration on the debtors‘ ability to repay debts to banks has been proven. The same situation was ascertained in other EU countries with imperfect economic conditions. Conversely, it has been estimated that banking systems in the EU countries with developed economies are not very sensitive to the business cycle fluctuations. So, in Lithuanian banks, when managing credit risk, the consideration of economic conditions is very important.Key words: banks, credit risk, macroeconomics, non-performing loans

scholarly journals MACROECONOMIC ANALYSIS OF THE EFFECTIVENESS OF TAX ECONOMIC REFORMS IN EU COUNTRIES

2019 ◽  
pp. 36-45
Author(s):  
I. Marekha ◽  
V. Myrhorodska
Keyword(s):  
European Union ◽  
Correlation Analysis ◽  
Environmental Taxes ◽  
Environmental Tax ◽  
The European Union ◽  
Macroeconomic Factors ◽  
Eu Countries ◽  
European Union Countries ◽  
The Impact ◽  
The Eu

The article substantiates the necessity to introduce systematic and effective tax eco-reforms in the context of resource-oriented economic development by the European Union countries. The performance and effectiveness of the reforms are estimated in relation to the main four groups of environmental taxes: energy taxes, pollution taxes, resource taxes and transport taxes. The macroecological policy of the European Union countries is the object of the undertaken analysis. The article examines the impact of macroeconomic factors on environmental taxes across the EU, using a correlation analysis toolkit. Four groups of macroeconomic parameters were selected for analysis: internal macroeconomic factors (nominal GDP, real GDP, inflation, business cycle stage, budget deficit, energy consumption level); external macroeconomic factors (government debt, exports, foreign direct investments); institutional macroparameters (environmental culture, shadow economy, trust in government) and fiscal macroparameters (tax culture and fiscal freedom). The economic interpretation of the obtained correlates is given. Based on the correlation analysis, stimulators and de-stimulators of tax environmental reforms across the EU were identified. It is established that the factors that positively influence on the tax environmental reforms are the overwhelming majority of the analyzed factors. The formation of indicators of the effectiveness of tax environmental reforms is undertaken for six countries of the Community. In particular, the analysis covers three economic leaders (Germany, the United Kingdom and France) and three leading EU countries in the field of environmental tax collection (Latvia, Greece and Slovenia). The article presents approaches to improving the assessment of the effectiveness of tax environmental reforms based on the consideration of fiscal (budget-filling) and reproductive (multiplicative) functions of environmental taxes. In this regard, the environmental tax multiplier and accelerator, as well as the GDP elasticity coefficient for environmental taxes, were calculated for the analyzed group of countries. The criteria of economic efficiency of tax eco-reforms are proposed. Keywords: environmental taxes, macroeconomic effect, macro-environmental policy, multiplier, accelerator, elasticity

scholarly journals Impact of Information and Communication Technology Infrastructure on Economic Growth: An Empirical Assessment for the EU Countries

2018 ◽  
Vol 10 (10) ◽  
pp. 3750 ◽  
Author(s):  
Elena Toader ◽  
Bogdan Firtescu ◽  
Angela Roman ◽  
Sorin Anton
Keyword(s):  
Economic Growth ◽  
Information And Communication Technology ◽  
Communication Technology ◽  
Macroeconomic Factors ◽  
Eu Countries ◽  
Information And Communication ◽  
Per Capita ◽  
Ict Infrastructure ◽  
The Impact ◽  
The Eu

The accelerated development of information and communication technology (ICT) over the past two decades has encouraged an increasing number of researchers to examine and measure the impact of this technology on economic growth. Our study aims to identify and evaluate the effect of using ICT infrastructure on economic growth in European Union (EU) countries for a period of 18 years (2000–2017). Using panel-data estimation techniques, we investigate empirically how various indicators of ICT infrastructure affect economic growth, proxied in our study by GDP per capita. Within the estimates, we have included some macroeconomic control variables. Our results indicate a positive and strongly effect of using ICT infrastructure on economic growth in the EU member states, but the magnitude of the effect differs depending on the type of technology examined. Regarding the impact of macroeconomic factors, our estimates indicate that inflation rate, unemployment rate, the degree of trade openness, government expenditures, and foreign direct investments would significantly affect GDP per capita at EU level. The findings are broadly similar to the theoretical predictions, but also to the findings of some relevant empirical studies. Our research reveals that ICT infrastructure, along with other macroeconomic factors, is an important driver of economic growth in EU countries.

scholarly journals СТЕЧАЈ БАНАКА И ФИНАНСИЈСКИХ УСТАНОВА У ЗЕМАЉАМА КАНДИДАТИМА ЗА ЕУ ЗАПАДНОГ БАЛКАНА

TEME ◽  
2018 ◽  
pp. 129
Author(s):  
Ђуро М. Ђурић ◽  
Владимир М. Јовановић ◽  
Мирјана М. Мисаиловић
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Economic Conditions ◽  
Negative Effects ◽  
Eu Countries ◽  
Eu Membership ◽  
Financial Difficulties ◽  
The World ◽  
Eu Candidate Countries ◽  
The Eu

The objective of this paper is to present the regulation of insolvency of banks and other financial institutions in some West Balkans countries (Serbia, Montenegro and FYROM) candidates for the EU membership and its development under the influence of the EU regulations. This question has become particularly interesting since the onset of the world financial crisis of 2008. Banks and financial institutions from the EU countries are among major players in financial markets. The crisis has shown that the models that have previously existed were not sufficient and did not enable an adequate level of cooperation between member states, in order to minimize the spreading of negative effects of individual insolvencies and problems of individual financial institutions across the EU and all over the world. Therefore, changes were needed in the regulations, and indeed, certain changes have been made. This paper tries to see and evaluate the enlargement of the EU which is currently not on top of the EU political and economic agenda, the candidate countries are in the process of adjusting their legislation and practices in order to be better prepared for negotiating with the EU, but also in order to make their respective economic conditions and markets more harmonized with the EU countries, therefore making them more attractive to potential foreign investors. We shall attempt to give a brief analysis of how several West Balkans EU candidate countries have reacted to the described changes in the EU regulations regarding financial institutions and handling their financial difficulties.

scholarly journals Ensuring the financial safety of Ukrainian agricultural enterprises in the context of export products and the impact on macroeconomic indicators

VUZF Review ◽  
2021 ◽  
Vol 6 (3) ◽  
pp. 186-195
Author(s):  
Maksym Bezpartochnyi ◽  
Igor Britchenko ◽  
Olesia Bezpartochna
Keyword(s):  
Foreign Exchange ◽  
Economic Activity ◽  
Agricultural Products ◽  
Financial Indicators ◽  
Internal Environment ◽  
Agricultural Enterprises ◽  
Eu Countries ◽  
Macroeconomic Indicators ◽  
The Impact ◽  
The Eu

This article is devoted to the study of directions of financial safety of Ukrainian agricultural enterprises through the assessment of indicators economic activity and analysis of the export potential of agricultural products. The financial indicators of economic activity of Ukrainian agricultural enterprises, which affect the ensuring of financial safety, are determined. The activity of large Ukrainian agricultural enterprises in terms of their capitalization and formation of own capital are studied. Analyzed the commodity structure of exports agricultural products of Ukrainian agricultural enterprises and determined the amount of foreign exchange earnings from EU countries. Due to economic-statistical and mathematical tools, a study of the dependence of GDP and the euro on foreign exchange earnings from exports of agricultural products of Ukrainian agricultural enterprises to the EU countries. Offered the scheme of directions of maintenance of financial safety of the agricultural enterprises of Ukraine in the context of internal environment of activity of economic entities and stabilization of macroeconomic indicators of the country.

scholarly journals Diversity and Changes in the Energy Balance in EU Countries

Energies ◽  
2021 ◽  
Vol 14 (4) ◽  
pp. 1098 ◽  
Author(s):  
Tomasz Rokicki ◽  
Aleksandra Perkowska
Keyword(s):  
Energy Balance ◽  
Political Development ◽  
The European Union ◽  
Eu Countries ◽  
Developed Economies ◽  
Import And Export ◽  
Stable Economy ◽  
The Given ◽  
Research Period ◽  
The Eu

The main purpose of the paper was to present the energy balance in the EU countries. The specific objectives were to show the concentration and directions of changes in the demand, production, import, and export of energy in the EU countries, to determine the degree of variability (or stability) of these energy balance parameters, and to establish the correlation between the energy balance parameters and economic parameters. All members of the European Union were determinedly selected for research on 31 December 2018 (28 countries). The research period embraced the years 2004–2018. The sources of materials were the literature on the topic and data from Eurostat. Descriptive, tabular, and graphical methods, Gini coefficient, Lorenz curve, coefficient of variation, Pearson’s linear correlation coefficient, and constant-based dynamics indicators were used in the analysis and presentation of materials. It was determined that only the demand for energy and its import in EU countries were nearly related to the economic situation. In turn, exports and production were medium and weakly correlated. In these parameters, economic factors had a smaller impact than other factors, such as political development or the level of energy development in the country. It was also found that the EU countries’ energy imports were characterized by lower volatility than its exports. As a rule, the most significant stabilization in the given parameters occurred in countries with a stable economy, the so-called developed economies, while the most significant volatility was in developing countries. Energy security is of great importance in all EU countries.

scholarly journals Dependencies between Variables from the Area of the Monetary and Fiscal Policy in the European Union Countries

2021 ◽  
Vol 24 (1) ◽  
pp. 7-25
Author(s):  
Joanna Stawska
Keyword(s):  
Fiscal Policy ◽  
Financial Crisis ◽  
Research Methods ◽  
Policy Coordination ◽  
Economic Conditions ◽  
Statistical Research ◽  
Eu Countries ◽  
Monetary And Fiscal Policy ◽  
The Impact ◽  
The Eu

Research background: The core of coordinating a monetary and fiscal policy (policy mix) is based on combining both policies to achieve goals related to price stability, as well as economic growth and employment. In turn, the decisions of economic authorities in the monetary-fiscal game have a significant impact on economic variables in the economy. In the economic literature, the importance of monetary and fiscal policy coordination is emphasized as it has a positive effect on the stability of the economy. Purpose of the article: The aim of the article is to identify the dependencies between variables in the scope of fiscal policy and monetary policy under existing economic conditions and then assess their impact on the economy in the EU countries. Methods: To achieve this objective, the following research methods were used: a review of the scientific literature, a presentation of statistical data, and statistical research methods. Findings & Value added: The rationale for adopting such issues is to examine the impact of the financial crisis on the decisions of central banks and governments in the EU. The financial crisis has affected a change in the approach to conducting monetary and fiscal policy. The changing economic conditions forced economic authorities to take many decisions that affected the interaction between the central bank and the governments in the EU Member States. In many EU countries in the discussed period, there were significant interdependencies between variables in both monetary and fiscal policy.

scholarly journals Kierunki rozwoju przemysłu spożywczego w Polsce i w Hiszpanii – analiza porównawcza

2017 ◽  
Vol 17(32) (2) ◽  
pp. 256-266
Author(s):  
Agnieszka Tarnowska
Keyword(s):  
Land Use ◽  
Economic Crisis ◽  
Rapid Growth ◽  
Food Industry ◽  
Economic Conditions ◽  
Economic Sector ◽  
Eu Countries ◽  
Feed Industry ◽  
Global Economic Crisis ◽  
The Eu

The food industry is an important economic sector in Poland and Spain, two EU countries with the most similar production and land-use potential. The aim of the article was to compare the directions and pace of development of this industry against the EU. Spain, after its accession to the Community, has developed economically and infrastructurally. In recent years, however, the effects of the global economic crisis have been strongly affected Spain economy. It also affected the food industry, which is relatively less susceptible to fluctuations in economic conditions. For Poland this is an instructive experience, because after its accession to the EU it develops in a similar way. The analysis of activity results of the Polish food industry is evidence of its rapid growth and its ability to compete with Spain in the future mainly in the dairy and feed industry.

scholarly journals The Determinants and Effects of Competitiveness: The Role of Digitalization in the European Economies

2021 ◽  
Vol 13 (21) ◽  
pp. 11689
Author(s):  
Tatyana Boikova ◽  
Sandija Zeverte-Rivza ◽  
Peteris Rivza ◽  
Baiba Rivza
Keyword(s):  
Economic Growth ◽  
Trade Openness ◽  
Critical Factor ◽  
Holistic Approach ◽  
Business Environment ◽  
The European Union ◽  
Macroeconomic Factors ◽  
Eu Countries ◽  
European Economies ◽  
The Eu

Improving national competitiveness is fundamental to raising long-term economic growth rates and enhancing living standards. The determinants of competitiveness change along with macroeconomic factors, business environment and consumer demand. These changes are visible in the growing importance of digitalization of enterprises of all sectors that has become a critical factor for competitiveness in recent years and will likely become even more essential. The main determinants of competitiveness performance in the European Union (EU) were analyzed in the proposed research. The study included a holistic approach to competitiveness and economic growth and aimed to reveal the factors that determine and contribute to the growth of European economies, as well as to identify clusters of the EU countries. The criteria of competitiveness that are significant for estimation of competitiveness factors and their relationship with economic growth were revealed by using factor analysis. The results indicate that the most significant factors are F1 Macroeconomic Stability, F2 Research and Development (R&D) and Digitalization, F3 Foreign Direct Investment and F4 Trade Openness. By applying cluster analysis, the EU countries were grouped into five clusters on the basis of the contribution of competitiveness factors to economic growth.

scholarly journals Primary energy consumption in selected EU Countries compared to global trends

2021 ◽  
Vol 19 (1) ◽  
pp. 503-510
Author(s):  
Tadeusz Olkuski ◽  
Wojciech Suwała ◽  
Artur Wyrwa ◽  
Janusz Zyśk ◽  
Barbara Tora
Keyword(s):  
Energy Consumption ◽  
Developed Countries ◽  
Primary Energy ◽  
World Population ◽  
Primary Energy Consumption ◽  
Energy Carriers ◽  
Global Trends ◽  
Eu Countries ◽  
Developed Economies ◽  
The Eu

Abstract The article shows the consumption of primary energy carriers in selected European Union (EU) countries, including Poland. The trend of consumption of primary energy carriers was compared with the global trend, which is different from that observed in the EU. The consumption of primary energy sources has been increasing steadily for many decades, due to the growth of the world population and the aspirations of developing countries to raise the standard of living of their citizens. In the EU, the opposite trend, i.e., a decrease in primary energy consumption, has been observed since 2007. This article presents tables and graphs showing these phenomena. The authors tried to answer the following questions: (a) What influences the decrease in demand for primary energy in highly developed countries? (b) Why the demand in less-developed countries is constantly growing? The trends in countries, such as Germany, France, the United Kingdom, Italy, and Poland, i.e., countries with the most developed economies in the EU and the home country of the authors, were analyzed.

scholarly journals DETERMINANTS OF BANK PROFITABILITY IN A DEVELOPING ECONOMY: EMPIRICAL EVIDENCE FROM BANGLADESH

2009 ◽  
Vol 10 (3) ◽  
pp. 207-217 ◽  
Author(s):  
Fadzlan Sufian ◽  
Muzafar Shah Habibullah
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Negative Impact ◽  
Negative Relationship ◽  
Bank Performance ◽  
Developing Economy ◽  
Bank Profitability ◽  
Macroeconomic Indicators ◽  
Interest Margins ◽  
The Impact

This study seeks to examine the performance of 37 Bangladeshi commercial banks between 1997 and 2004. The empirical findings of this study suggest that bank specific characteristics, in particular loans intensity, credit risk, and cost have positive and significant impacts on bank performance, while non‐interest income exhibits negative relationship with bank profitability. During the period under study the results suggest that the impact of size is not uniform across the various measures employed. The empirical findings suggest that size has a negative impact on return on average equity (ROAE), while the opposite is true for return on average assets (ROAA) and net interest margins (NIM). As for the impact of macroeconomic indicators, we conclude that the variables have no significant impact on bank profitability, except for inflation which has a negative relationship with Bangladeshi banks profitability.

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