Loan portfolio and nonperforming loans in Western Balkan Countries

Abstract

Non-performing loans (NPLs) present one of the most controversial issues in both developed and developing countries. The main purpose of this paper is to analyze and compare the loan portfolio and NPLs in the Western Balkan countries: Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro, and Serbia for the period 2008-2015. Besides, this research aims to make a comparative analysis of some other macroeconomic indicators and industry factors that affect them such as GDP, banking sector assets, loan portfolio, asset participation in GDP, credit participation in GDP, deposit credit ratio, the NPL report on total loans. The results show that the NPL have had a growing trend in the post-global financial crisis, with different variations. In this regard, the highest rate of NPL reflects Serbia, Albania, followed by Montenegro, B&H, and Macedonia, while the lowest rate is in Kosovo.

Keywords: {'name': 'bank loans'}, {'name': 'credit quality'}, {'name': 'credit risk'}, {'name': 'NPLs'}, {'name': 'banking'}

Authors & affiliations

Qazim Tmava
Affiliation not supplied

Ajtene Avdullahi
Affiliation not supplied

Besë Sadikaj
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

Alton, R., & Hazen, J. (2001). As Economy Flounders Do we See A Rise In Problem Loans? St Louis: Federal Reserve Bank. Retrieved from wwwttps.stlouisfed.org

DOI: 10.21113/iir.v5i1.13

Bank of Albania . (2015). Annual Reports 2008-2015. Tirana: Bank of Albania. Retrieved from https://www.bankofalbania.org/Publications/Periodic/Annual_Report/

DOI: 10.2139/ssrn.2214971

Central Bank of Bosnia and Hercegovina. (2015). Annual Reports. Sarajevo: Central bank of Bosnia and Hercegovina. Retrieved from https://cbbh.ba/?id=1&lang=en

Chhimpa, J. (2002). Incremental NPA: Stem that Inflow. Vinimaya, 23(3), 18-21.

DOI: 10.5937/ekonomika1501115D

Dimitrios , A., Louri, H., & Tsionas, G. (2016). “Non-performing loans in the euro area: are core-periphery banking markets fragmented? Greece: Bank of Greece and Research Associate.

DOI: 10.14706/JECOSS11228

Guy, K. (2011). ‘Non-Performing Loans. The Central Bank of Barbados”. Economic Review, 37(1), 10-12.

Hennie, V. (2003). ”Analyzing and Managing Banking Risk: A Framework for Assessing Corporate Governance and Financial Risk”,. 2nd Edition Washington DC: World Bank Publication.

Hou, Y., & Dickinson, D. (2007). The non-performing loans: Some bank-level evidences. Safty and Efficiency of Finance System. Greece: Asia -link Programe. Retrieved from http://cba.upd.edu.ph/asialink/Hou_Dickinson.pdf

DOI: 10.2139/ssrn.2247224

Kosovo Banking Association. (2016). Level of non-performing loans. Prishtine: Kosovo Banking Association.

DOI: 10.1016/j.jbankfin.2011.10.012

DOI: 10.2298/PAN1402193M

Montenegro, C. B. (2015). Annual Reports 2008-2015. Podgorica: Central Bank of Montenegro. Retrieved from https://www.cbcg.me

National Bank of Macedonia . (2015). Annual Reports (2008-2015). Skopje: National Bank of Macedonia. Retrieved from http://www.nbrm.mk/pocetna-en.nspx

National Bank of Serbia . (2015). Annual Reports (2008-2015). Belgrade: National Bank of Serbia. Retrieved from https://www.nbs.rs/internet/english/

DOI: 10.2139/ssrn.1888904

DOI: 10.14419/ijaes.v3i1.4337

Shijaku, G., & Kalluci, I. (2013). “Determinants of bank credit to the private sector: the case of Albania”. Tirana: BK Tirana 36.

DOI: 10.5901/ajis.2013.v2n9p335

DOI: 10.17722/ijme.v12i2.1068

DOI: 10.22161/ijels.4.1.4

Uppal, R. (2009). “Priority Sector Advances: trends, Issues, and Strategies”. Journale of Accounting and Taxation, 1(5), 79-89.

Waweru, N., & Kalami, V. (2009). “Commercial Banking Crises in Kenya: Causes and Remedies”. Global Journal of Finance and Banking, 3(3), 23-43.

World Bank. (2016). Non perfotming bank loans in relation to total gross loans. Washington: World Bank. Retrieved from https://data.worldbank.org/indicator/FB.AST.NPER.ZS

DOI: 10.17265/1548-6591/2016.07.002