Macroeconomic and bank specific determinants of non-performing loans in UAE conventional bank

Kumar, Vijaya and Kishore, Pallavi ORCID logoORCID: (2019) Macroeconomic and bank specific determinants of non-performing loans in UAE conventional bank. Journal of Banking and Finance Management, 2 (1) . pp. 1-12. ISSN 2642-9144 [Article]

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This paper uses panel data methodology including Random Effects model to identify the bank-specific determinants and macroeconomic determinants of non-performing loans in the United Arab Emirates (UAE) conventional banks for the period 2008-2015. Among the bank-specific determinants, non-performing loans (NPL, t-1) indicate a significant positive relationship with NPL and liquidity ratio indicate a significant negative relationship with NPL, whereas capital adequacy ratio and return on assets was found to have an insignificant relationship due to the robust banking regulations in UAE. All the macroeconomic determinants, namely, gross domestic product, growth, inflation, domestic credit to private sector, unemployment and government debt appeared to be insignificant in determining the level of NPLs, suggesting that the crisis is more intrinsic to internal issues within the corporates and not related to macroeconomic factors.

Item Type: Article
Sustainable Development Goals:
Research Areas: A. > Business School
A. > Business School > Accounting and Finance
A. > Business School > Economics
Item ID: 35740
Depositing User: Pallavi Kishore
Date Deposited: 26 Aug 2022 11:07
Last Modified: 12 Oct 2022 09:30

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