Abstract
The research applied FEM-REM model using panel data in order to define the internal and macro determinants affecting the credit risk of 20 commercial banks for the period of 2006–2017. This paper concentrated on the credit risk measured by non-performing loans ratio. The macroeconomic variables are comprised the GDP growth, real interest rate, unemployment rate, and the bank-specific variables are determined by the return on assets with the 1-year time lag, the loan growth, loan loss provision. The results indicate that the the unemployment rate, real interest rate affect negatively the credit risk. Additionally, the credit risk is affected positively by loan loss provision.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
