DETERMINANTS OF LOAN QUALITY: LESSONS FROM GREEK COOPERATIVE BANKS
DETERMINANTS OF LOAN QUALITY: LESSONS FROM GREEK COOPERATIVE BANKS
Author(s): Vasiliki Makri, Konstantinos PapadatosSubject(s): Supranational / Global Economy, Business Economy / Management, Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today), Socio-Economic Research
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: credit risk; loan quality; loan loss reserves; accounting factors; macroeconomic environment and generalized methods of moments;
Summary/Abstract: The article focuses on the credit risk of cooperative banks in Greece. The main objective is to define which factors are responsible for variations in loan quality during the period 2003-2014. Loan quality is measured by Loan Loss Reserves Ratio (LLR) and dynamic regression techniques are implemented for the econometric estimations. The outlined results suggest that the macroeconomic environment (i.e. public debt, local unemployment, economic activity and inflation) and the accounting ratios (i.e. past loan quality and profitability) seem to be the explanatory variables of problem loans.
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2016
- Issue No: 17
- Page Range: 115-140
- Page Count: 26
- Language: English
