THE IMPACT OF THE NON-PERFORMING LOANS TO BANKS’PERFORMANCE: THE CASE OF THE REPUBLIC OF MACEDONIA
Journal Title: EMC Review: Časopis za ekonomiju i tržišne komunikacije - Year 2017, Vol 7, Issue 2
Abstract
The paper investigates the relationship between non-performing loans and the basic indicators for banks’performance. The analysis was conducted among the banking sector in the Republic of Macedonia for the period 2007-2015. The share of non-performing loans in total loans is one of the basic indicators for the quality of the credit portfolio in banks. The analysis of the movement and the level of non-performing loans is of great importance for identifying possible problems in bank risk management as a whole. With the application of correlation and regression method, we confirmed the findings of the consequences of non-performing loans on the performance of banks. The results indicate that a large share of non-performing loans to total loans leads to deterioration in the financial and liquidity position. There is a weak negative correlation between the rate of capital adequacy and non-performing loans ratio and that requires further research.
Authors and Affiliations
Ljube Jolevski
Keywords
Related Articles
- EP ID EP333110
- DOI -
- Views 94
- Downloads 0
THE IMPACT OF CHOCOLATE BRAND IMAGE, SATISFACTION, AND VALUE ON BRAND LOYALTY
Th is paper deals with direct eff ects ofbrand image, satisfaction and value on consumer loyaltytowards branded chocolates. In the empirical research, a model with these four brand dimensions was established to examine d...
THE ANALYSIS OF NET POSITIONS OF THE NEW EU MEMBERS STATES IN THE EU BUDGET
Debate on the member states’ share in revenues and expenditures of the joint budget, that is, net positions of the countries in the EU budget, has been ongoing since the formation of EU. In that sense, the redistributive...
MANAGING THE DEVELOPMENT OF SOCIAL ENTREPRENEURSHIP
Th e rapid growth of social entrepreneurship is characterized by an increase in social inequalities alone poverty in the world, which is a consequence of the development of globalization. About social entrepreneurship an...
KNOWLEDGE AS AN ESSENTIAL FACTOR OF HUMAN CAPITAL AND A KEYFACTOR FOR SUSTAINABLE DEVELOPMENT
The history of mankind is composed of cognition and knowledge. On these grounds, life is composed and the foundations of the sustainability of the material world are built, as well as movement towards success and develop...
ORGANIZATIONAL CHANGES SUPPORTED IT AS A RESPONSE TO CHALLENGES OF GLOBALIZATION
Organizations in today’s era must have the capability for innovations and changes, not only to achieve prosperity, but also to survive in a world of increasing competition. The international economic integration, the mat...