Factori determinanți ai creditelor neperformante
Determinants of non-performing loans

Summary/Abstract: In this study, we aim to identify the determinants of non-performing loans (NPLs), using a sample of 337 commercial banks from the European Union during the period 2013-2021. As explanatory variables for NPL dynamics, we selected bank size, profitability, the loans-to-deposits ratio, banking concentration as measured by the Herfindahl-Hirschman index, economic growth, unemployment rate, and inflation. Using a panel econometric model with fixed and random effects, we found that bank size and profitability have a negative association with the level of NPLs, suggesting that larger and more profitable banks manage the risk of non-performing loans more effectively. Moreover, some macroeconomic variables, such as the unemployment rate and economic growth, exert a statistically significant influence on NPL levels. Banking concentration did not have an impact on NPL rates throughout the entire analyzed period; however, during the pandemic, an increase in this indicator led to an improvement in the banks’ credit portfolios. The crisis generated by the COVID-19 pandemic introduced a new dimension to the analysis of NPLs, highlighting that larger banks were better equipped to manage risks during this period. The estimated results are robust across different regression model specifications and provide an important starting point for financial and banking policy makers.

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