Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/185916
Authors: 
Festić, Mejra
Repina, Sebastijan
Kavkler, Alenka
Year of Publication: 
2009
Citation: 
[Journal:] Swiss Journal of Economics and Statistics [ISSN:] 2235-6282 [Volume:] 145 [Year:] 2009 [Issue:] 3 [Pages:] 269-291
Abstract: 
We tested for the significance of macroeconomic variables that condition nonperforming loan (NPL) ratios. The hypothesis of procyclicality between economic activity and improving NPL ratio in the Baltic States was proved. The increased economic activity improved the NPL ratio. Due to a high share of loans denominated in a foreign currency and the fact of productivity gains in the tradable sector, the appreciation of the real exchange rate contributed to an improvement in NPL ratio. The procyclicality of banking sector performance and high economic activities growth could be a signal of an economy overheating in the Baltics.
Subjects: 
cyclicality
non-performing loans
systemic risk
asset quality
JEL: 
F47
G15
G21
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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