Governance matters on non-performing loans: Evidence from emerging markets

Authors

  • Burak Byükoğlu
  • Ahmet Šit
  • İbrahim Halil Ekši

DOI:

https://doi.org/10.13133/2037-3643/17486

Abstract

In this study, new determinants of non-performing loans (NPL) for the MSCI emerging countries were investigated. For this purpose, a new index was formed using the World Bank’s Worldwide Governance Indicator data from 2002 to 2018. To test the effect of governance on NPL, we used the GMM technique. As a robustness test for GMM results, we employed the DOLSMG technique. According to the results, NPL was affected negatively by the DOI: governance index. This result could be of interest to policymakers and regulators as a macroprudential policy tool.

 

JEL codes:

C51; G21; G2

Keywords:
Non-performing loans; Worldwide Governance Indicators

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Published

2021-06-07

How to Cite

Byükoğlu, B., Šit, A., & Ekši, İbrahim H. (2021). Governance matters on non-performing loans: Evidence from emerging markets. PSL Quarterly Review, 74(296), 75–91. https://doi.org/10.13133/2037-3643/17486

Issue

Vol. 74 No. 296 (2021): March

Section

Perspectives

License

Copyright (c) 2021 Burak Byükoğlu, Ahmet Šit, İbrahim Halil Ekši

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

 
 
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