scholarly journals The Impact of Macroeconomic and Banking Factors on Credit Growth in the Albanian Banking System

2015 ◽  
Vol 2 (1) ◽  
pp. 113 ◽  
Author(s):  
Ali Shingjergji ◽  
Marsida Hyseni
Keyword(s):  
Interest Rate ◽  
Unemployment Rate ◽  
Inflation Rate ◽  
Banking System ◽  
Ordinary Least Squares ◽  
Capital Adequacy ◽  
Gdp Growth ◽  
Credit Growth ◽  
Capital Adequacy Ratio ◽  
The Impact

The aim of this paper is to analyze the influence of some macroeconomic and bankhttp://ejes.euser.org/issues/may-august-2015/Ali.pdfing factors on credit growth in the Albanian banking system. From the literature review is noticed that the credit growth in the banking system is influenced by both macroeconomic and banking factors. We use credit growth as a dependent variable while as independent variables we use: GDP growth, inflation rate, unemployment rate, loan interest rate, capital adequacy ratio, bank size and NPL ratio. The relationship between credit growth and macroeconomic and banking factors was tested by using a regression model like the ordinary least squares (OLS). We take into consideration a period from 2002 – 2013 using quarterly panel data for the whole Albanian banking system with a total of 48 observations per each variable. The regression results find out that the credit growth in the Albanian banking system is positively related to GDP growth, inflation rate and capital adequacy ratio while is negatively related to unemployment rate, interest rate, non performing loans and bank size.

A revisit of the unemployment rate, interest rate, GDP growth and Inflation of Pakistan: Whether Structural break or unit root?

2021 ◽  
Vol 3 (2) ◽  
pp. 80-92
Author(s):  
Sara Muhammadullah ◽  
Amena Urooj ◽  
Faridoon Khan
Keyword(s):  
Interest Rate ◽  
Unemployment Rate ◽  
Unit Root ◽  
Structural Breaks ◽  
Inflation Rate ◽  
Structural Break ◽  
Unit Root Test ◽  
Unit Root Tests ◽  
Gdp Growth ◽  
Macroeconomic Indicators

The study investigates the query of structural break or unit root considering four macroeconomic indicators; unemployment rate, interest rate, GDP growth, and inflation rate of Pakistan. The previous studies create ambiguity regarding the stationarity and non-stationarity of these variables. We employ Zivot & Andrews (1992) unit root test and Step Indicator Saturation (SIS) method for multiple break detection in mean. GDP growth and inflation rate are stationary at level whereas unit root tests fail to reject the null hypothesis of the unemployment rate and interest rate at level. However, Zivot and Andrew unit root test with a single endogenous break indicates that the unemployment rate and interest rate are stationary at level with a single endogenous break. On the other hand, the SIS method reveals that the series are stationary with multiple structural breaks. It is inferred that it is inappropriate to take the first difference of the unemployment rate and interest rate to attain stationarity. The results of this study confirmed that there exist multiple breaks in the macroeconomic variables considered in the context of Pakistan.

scholarly journals Regulatory Capital is a Panacea for Efficiency, Credit Growth and Reducing Non-Performing Loans in Commercial Banks

2021 ◽  
Vol 16 (2) ◽  
pp. 265-287
Author(s):  
Amina Malik ◽  
◽  
Babar Zaheer Butt ◽  
Shahab Ud Din ◽  
Haroon Aziz ◽  
...  
Keyword(s):  
Commercial Banks ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Regulatory Capital ◽  
Credit Growth ◽  
Minimum Capital ◽  
Capital Adequacy Ratio ◽  
The Impact ◽  
Interest Margin

This study examined the effectiveness of regulatory capital in enhancing efficiency and credit growth and reducing bad loans in commercial banks listed on the Pakistan Stock Exchange (PSX) from 2010 to 2019. Precisely, the impact of capital adequacy ratio (CAR) was studied on net interest margin (NIM), credit growth (CR) and non-performing loans (NPLs). The impact of capital adequacy regulations was assessed by retrieving data from financial statements analysis (FSA), Bank Financial statements and the World Bank website. Panel regression models including ordinary least squares (OLS), fixed and random effects under robust title were applied in this study. Results revealed that the implementation of stringent CAR plays the role of panacea and increases interest margin & credit growth and a reduction of NPL in Pakistani commercial banks. The study provides practical results for regulators to customize regulations on credit growth to reduce non-performing loans and maintain healthy growth of loans by not compromising on interest margins as well as maintenance of minimum capital adequacy ratios. With the high significance of stringent minimum capital adequacy for banks, the findings of the study are valuable for regulators, banks, auditors and investors, as capital adequacy ratio commonly plays the role of Panacea in terms of efficiency, credit growth and reduction in non-performing loans. Keywords: capital adequacy ratio, efficiency, credit growth, non-performing loans

scholarly journals The Impact of Government Size on Inflation in selected Developing Countries (2006-2014)

2018 ◽  
pp. 71-90
Keyword(s):  
Growth Rate ◽  
Developing Countries ◽  
Panel Data ◽  
Interest Rate ◽  
Inflation Rate ◽  
Government Size ◽  
Gdp Growth ◽  
Money Growth ◽  
Gdp Growth Rate ◽  
The Impact

One of the serious challenges facing developing countries that are facing is the issue of inflation. Inflation creates serious challenges for economic agents as a result of the greatly damaging effects of economic and economic growth. Despite the general understanding of the concept of inflation, there is still no agreement between economists on the causes of its creation. The present study examines the impact of government size on inflation in 16 selected developing countries (Afghanistan, India, Iran, Malaysia, Mexico, Argentina, Qatar, Singapore, Kuwait, Pakistan, Uruguay, Benon, Nepal, Mali, Vietnam and Bhutan) will be tested during the period from 2006 to 2014. The pattern examined for this purpose, using the combination (panel) data in the least squared method completely, for the investigated pattern for this purpose, using generalized least squares panel data, toinvestigate the effect of each of the variables of government size, the index of import value, interest rate, Money and quasi money growth rate and GDP growth rate used on the Inflation rate. The results of this research indicate that the Money and quasi money growth rate, interest rate and growth rate of the import value index had a positive and significant effect on the inflation rate, and the GDP growth rate had a negative and significant effect on the inflation rate. Also, the main independent variable of government size model has had a negative and significant impact on inflation in the studied countries.

scholarly journals ANALISIS FAKTOR INTERNAL DAN EKSTERNAL BANK YANG MEMPENGARUHI PROFITABILITAS BANK UMUM DI INDONESIA

2017 ◽  
Vol 10 (1) ◽  
Author(s):  
Aris Fadjar ◽  
Hedwig Esti S ◽  
Tri Hartini EKP
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Inflation Rate ◽  
Secondary Data ◽  
External Factors ◽  
Capital Adequacy ◽  
Internal Factors ◽  
Operating Income ◽  
Capital Adequacy Ratio ◽  
The U.S

The purpose of this research is to analyze the influence of internal factors of banks consisting of Capital Adequacy Ratio (CAR), Non-Performing Loans (NPLs), Operating Expenses Operating Income (BOPO), Loan to Deposit Ratio (LDR), and external factors of banks consisting of the value exchange rate of rupiah against the U.S. dollar, interest rate (SBI 1 month), and the inflation rate to Return On Asset (ROA) of the general bank. It used the secondary data from Indonesia Economic and Financial Statistic (SEKI) which published by Bank Indonesia monthly. The samples took from ROA of general bank as series, CAR, NPLs, BOPO, LDR, inflation rate, exchange rate rupiah to US $, and SBI rate with period 2007-2010. The result shows, external factors of banks and CAR do not significantly influence to the ROA of general Bank, while internal factors are significantly influence to ROA general bank. As the simultaneous, the seven variables have positive significant influence to the ROA general bank it can be proofed with F value > F table (7.574 > 2.589). And all of the independence variables have had influenced for 52.9 percent to the ROA general bank.

scholarly journals The impact of credit risk and macroeconomic factors on profitability: the case of the ASEAN banks

2020 ◽  
Vol 15 (1) ◽  
pp. 21-29
Author(s):  
Myra V. De Leon
Keyword(s):  
Credit Risk ◽  
Fixed Effects ◽  
Inflation Rate ◽  
Ordinary Least Squares ◽  
Gdp Growth ◽  
Fixed Effects Model ◽  
Macroeconomic Factors ◽  
Factors Affecting ◽  
Level Of Significance ◽  
The Impact

This study investigates the effect of credit risk and macroeconomic factors on profitability of 20 ASEAN banks, particularly from Indonesia, Malaysia, Thailand and Philippines, covering the period of 2012 to 2017. The unbalanced panel data were tested for heteroscedasticity and normality. A fixed effects model and a random effects model were utilized followed by simple ordinary least squares (OLS) regression. The obtained results show that credit risk and GDP growth negatively affect Return on Equity (ROE) at 5% level of significance. The inflation rate increases ROE by 0.323%. In terms of influence, inflation has the highest impact on ROE followed by GDP growth and credit risk. Credit risk and GDP growth negatively affect Return on Assets (ROA) at 5% level of significance. ROA was also influenced by an increase in inflation rate. Therefore, this study will help banks and bank managers, depositors, investors, policy makers and governments to identify factors affecting bank profitability.

scholarly journals Impact of Non-Performing Loans on Credit Growth in the Banking Industry in Tanzania: 2009 – 2018

2021 ◽  
pp. 10-18
Author(s):  
John P. Lihawa ◽  
Deus D. Ngaruko
Keyword(s):  
Growth Rate ◽  
Regression Analysis ◽  
Private Sector ◽  
Interest Rates ◽  
Inflation Rate ◽  
Negative Impact ◽  
Gdp Growth ◽  
Credit Growth ◽  
Gdp Growth Rate ◽  
The Impact

This study adopted descriptive statistics and multiple regression analysis in investigating the impact of Non-Performing Loans (NPL) on credit growth to private sector in Tanzania, apart from NPL. The study also investigated the influence of interest rates, inflation rates and GDP on credit advancement to private sector in Tanzania. Using multiple linear regression analysis the study found that both NPL and interest rates have negative impact on the credit growth to private sector in Tanzania, with coefficient values of -0.323 and -0.263 for NPL and interest rate respectively. Furthermore, the study also found that Inflation rate and GDP growth rate have positive impact on the credit growth to private sector in Tanzania with coefficients of 0.247and 0.156 for inflation rate and GDP growth rate respectively. The study found that NPL has a significant negative impact on the credit growth by commercial bank to private sector in Tanzania. These results suggest that the central bank should continue to closely monitor and control the level of NPL in the economy and confine it below the threshold of 5% as stipulated by the BOT and IMF. The study also recommends that commercial banks should ensure that a thorough credit risk assessment is conducted when advancing loans to private sector.

scholarly journals Analyse and Survey Variables of Macroeconomic Effects on Credit Risk of Bank Mellat

2016 ◽  
Vol 5 (1) ◽  
pp. 143
Author(s):  
Majid Lotfi Ghahroud
Keyword(s):  
Growth Rate ◽  
Panel Data ◽  
Interest Rate ◽  
Credit Risk ◽  
Inflation Rate ◽  
Nominal Interest Rate ◽  
Series Data ◽  
Gdp Growth ◽  
Financing System ◽  
The Impact

Trying to identify, measure and manage credit risk in the banking system is crucial. Given that on the one hand financing system of the country is bank-based and on the other hand lack of proper investigation in the credit risk area lead to a reduction in the allocation of resources in the form of loans and has been increased the non-performing loan. Therefore, concerning about credit risk and its reduction strategies has grown. In this study attempted to examine the impact of macro-economic features, such as GDP, inflation, rate of GDP growth, imports goods and final services, rate of nominal interest, amount of credit risk in the last period and the growth rate of facility to be addressed in Credit risk of the Mellat Bank.Moreover, the effects of macroeconomic conditions on credit risk are investigated. In this regard, credit risk of 52 active branches of Mellat Bank with variables such as GDP growth, GDP rates, inflation ,credit growth and nominal interest rate since 1386 to 1391 has been measured by using panel data. To do this, combination of cross-sectional and time-series data (panel data) are used. That means relation between the variables evaluated and tested by using econometric methods such as data compilation methodology (panel data). To estimate the model, to select the best model of conventional panel data, fixed effects and random effects, the F and Housman tests will be done. In this regard, E-views software utilized and Excel for calculation of variables has been used. Based on the results of research the effect of nominal interest rate, facility growth rate and the grow rate of GDP on the credit risk is significant and positive in contrast, the inflation rate has had a negative effect on credit risk.

scholarly journals PENGARUH RISIKO KREDIT, MINIMALISASI RISIKO, PERTUMBUHAN PRODUK DOMESTIK BRUTO, DAN INFLASI TERHADAP PENDAPATAN BUNGA BERSIH PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2013-2016

2020 ◽  
Vol 7 (1) ◽  
pp. 23
Author(s):  
Devi Widyawati ◽  
Desta Rizky Kusuma
Keyword(s):  
Risk Aversion ◽  
Credit Risk ◽  
Sampling Method ◽  
Positive Impact ◽  
Capital Adequacy ◽  
Gdp Growth ◽  
Panel Regression ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
The Impact

The aim of this research is to examine empirically the impact of credit risk, risk aversion, gross domestic product (GDP) growth, and inflation to Net Interest Margin on banking companies enlisted in BEI year 2013-2016. The factors that influenced NIM is credit risk which is proxied with NPL (Non Performing Loan) ratio, risk aversion which is proxied with CAR (Capital Adequacy Ratio), GDP growth and inflation. The period used is from 2013-2016.This research is causal research, that is to find recausality of independent and dependent variable. The population is 42 banking companies. The sampling method used is purposive sampling method. Based on the criteria, there are 41 banking companies. The hypothesis trial is done by the analysis of data panel regression an before do it, the research did a classic assumption trial. The result of hypothesis trial is done partially is t-test showed that NPL has t-statistic score is 1,4136 and t-tabel score is 1,290 on alpha 10% , so NPL has positive impact to NIM. CAR has t-statistic score is -0,2698 and t-tabel score is 1,290 on alpha 10%, so CAR doesn’t have impact to NIM. GDP growth has t-statistic score is 2,9349 and t-tabel score has 1,290 on alpha 10%, so GDP growth has positive impact to NIM. Inflation has t-statistic -0,5184 and t-tabel score is 1,290 on alpha 10%, so inflation doesn’t have impact to NIM.

scholarly journals ASSESSMENT OF CREDIT RISK IN NEPALI COMMERCIAL BANKS

2018 ◽  
Vol 3 (3) ◽  
pp. 65 ◽  
Author(s):  
Shiva Raj Poudel
Keyword(s):  
Interest Rate ◽  
Credit Risk ◽  
Commercial Banks ◽  
Negative Impact ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Fixed Effect Model ◽  
Capital Adequacy ◽  
Gdp Growth ◽  
Capital Adequacy Ratio

The main objective of the study is to identify the major indicators of credit risk among the Nepali commercial banks. The study is conducted using the sample of 15 commercial banks operated in Nepali economy. One way Fixed Effect Model (FEM) of panel data analysis is used as a major tool of analysis. All the data for the study were obtained from the database of Nepal Rastra Bank for bank specific variables and database of World Bank for macroeconomic variables for the year 2002/03 to 2014/15. The credit risk among the commercial banks in Nepal was regressed on bank specific variables such as liquidity, capital adequacy ratio, bank size, and interest spread. Similarly, the effects of macro-economic variables such as GDP growth, rate of inflation and interbank interest rate were also examined along with bank specific variables in identifying credit risk in Nepali commercial banks. The study reveals that liquidity has the significant positive impact on credit risk in Nepali commercial banks. In contrast, capital adequacy ratio and interest spread have the significant negative impact on credit risk. The analysis further confirmed that bank size and interest spread both have no any clear direction of impact on credit risk. Moving towards the GDP growth, credit risk in Nepali commercial banks is negatively fluctuates with GDP growth, however, the statistics show the coefficients are insignificant at 5% level. Contrarily, Inter-bank interest rate has insignificant negative impact on credit risk in Nepali commercial banks.

scholarly journals The Impact of Fiscal Deficit on Inflation Rate - Empirical Evidence Case of Eurozone

2019 ◽  
Vol 12 (2) ◽  
pp. 1814-1819
Author(s):  
Nexhat Kryeziu ◽  
Esat Durguti
Keyword(s):  
Growth Rate ◽  
Interest Rate ◽  
Linear Regression ◽  
Regression Model ◽  
Unemployment Rate ◽  
Public Debt ◽  
Linear Regression Model ◽  
Inflation Rate ◽  
Government Bond ◽  
The Impact

The purpose of this working paper is to investigate if determinants have an impact on inflation rate in Eurozone Countries by using times series data for 17 countries from year 1997 to 2017, in yearly basis in total 375 observations. The study used quantitative research approach and secondary data and is analyzed by using linear regression model measures: Inflation rate as a dependent variable, and five independent variables such us: GDP to growth rate, Deficit to GDP rate, Public debt to GDP rate, Government bond interest rate and Unemployment rate. Linear regression model was applied to investigate the impact of GDP to growth rate, deficit to the GDP rate, Public debt to the GDP rate, Government bond interest rate, and Unemployment rate to the dependent variable Inflation rate. From the Linear Regression Model coefficients for inflation rate as a dependent variable shows that three of five variables have a significance one with negative significance and two positive significance. The empirical result shows that the three of five ratios that we mentioned above have a strong influence on the Inflation rate.

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