Journal of
Italian
Banking
Association

year 100
 

Forum | Papers » Macroeconomic and Bank-specific determinants of Npls in Europe: the role of branches and bank size

Macroeconomic and Bank-specific determinants of Npls in Europe: the role of branches and bank size

Candida Bussoli, Vito Caputo, Danilo Conte
January 2020 - n. 1
Keywords: Bank, doubtful loans, non-performing loans, impaired loans
Jel codes: G20, G21

The paper aims to test the impact of macroeconomic and microeconomic indicators on the quality of bank lending, based on a sample of 711 European banks with different specialisations, in the period 2013-2017. The evidences show that, on one side, adverse macro conditions worsen the quality of loans. On the other side, banks with higher profitability and capitalisation have a lower level of non-performing loans and loss reserves. Finally, the analysis indicates that more branches are negatively associated with credit quality, however their negative impact is reduced for larger banks.

 

                                                                    Interested in this paper?
                                                                          Buy the issue