Abstract
Using the dynamic panel data methods estimated over 2003–2012 on around 16 Tunisian banks, the current paper attempts to examine the determinants of households’ non-performing loans (NPLs). The main objective is to investigate the potential effect of both macroeconomic and bank-specific variables on the quality of loans.Our results indicate the extent to which households’ NPLs in the Tunisian banking system can be explained particularly not only by macroeconomic variables (GDP, inflation, interest rates) but also by bad management quality.
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