Approaches to the Impact of Non-Performing Loans on the Romanian Economy
| Autor: | Costinela Fortea, Monica Laura Zlati, Valentin Marian Antohi |
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| Jazyk: | angličtina |
| Rok vydání: | 2024 |
| Předmět: | |
| Zdroj: | Annals of Dunarea de Jos University. Fascicle I : Economics and Applied Informatics, Vol 30, Iss 1, Pp 148-155 (2024) |
| Druh dokumentu: | article |
| ISSN: | 15840409 1584-0409 |
| DOI: | 10.35219/eai15840409401 |
| Popis: | Non-performing loans (NPLs) are a financial item that affects bank profitability by reducing banks' income from lending and increasing non-performing loans at the industry level. This phenomenon is associated with a decrease in lenders' financial capacity due to inflation and exchange rate instability. We aim to analyze the impact of non-performing loans on the Romanian economy based on an econometric model for the period 2010-2021 using financial indicators on bank non-performing loans in correlation with macroeconomic indicators such as unemployment, inflation, GDP deflator and general government final consumption expenditure. The methods used consist of literature review on non-performing loans, consolidation of a database, application of econometric modelling techniques using linear regression. The results of the study support the possibilities of reducing the negative impact of non-performing loans through macroeconomic recovery and smart financial allocation. |
| Databáze: | Directory of Open Access Journals |
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