Abstract
Non-performing loans has become an important part of commercial banking of a country. This paper empirically tests the macroeconomic and bank-specific covariates of non-performing loans for a panel of 13 commercial banks for period of 2003-2012. Using fixed effects with Driscoll and Kraay standard errors, the influence of macroeconomic and bank-specific covariates is found meaningful. Recommendations include the policy steps to complement the sound financial system with a healthy macroeconomic environment to reduce non-performing loans in commercial banks in Pakistan. Moreover, need is highlighted for a policy approach with emphasis on the apposite credit culture and lending policy designed with pertinent economic and financial factors.
Metadata
Item Type: | Article |
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Creators: | Creators Email / ID Num. Mehmood, Bilal UNSPECIFIED Younas, Zahid Irshad UNSPECIFIED Ahmed, Nisar UNSPECIFIED |
Subjects: | H Social Sciences > HB Economic Theory. Demography H Social Sciences > HB Economic Theory. Demography > Macroeconomics |
Divisions: | Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Business and Management |
Journal or Publication Title: | Journal of Emerging Economies and Islamic Research |
UiTM Journal Collections: | UiTM Journal > Journal of Emerging Economies and Islamic Research (JEEIR) |
ISSN: | 2289 – 2559 |
Volume: | 1 |
Number: | 3 |
Page Range: | pp. 1-15 |
Keywords: | Non Performing Loans, Economic Growth, Fixed Effects Estimation with Driscoll and Kraay standard errors. |
Date: | September 2013 |
URI: | https://ir.uitm.edu.my/id/eprint/32768 |