This paper presents the pilot top-down climate stress test of the Hungarian banking system over the 2020-2050 horizon. The focus is on a core indicator of financial soundness, the ratio of non-performing loans. Three scenarios are considered with different grades of compliance with the Paris...

Non-performing loan is a red flag, providing signal of jeopardize for a country’s economy. With respect to increase in non-performing loans, banking sectors of Bangladesh has trapped in gridlock. This problem has become an alarming issue for bank’s sustainability. The present study...

As consolidation in the banking sector has increased impressively in the wake of the global financial crisis, the question of the impact of market power on bank risk has become topical again. In this study we investigate empirically the impact of market power as evidenced by concentration (CR5...

In this study we propose a new determinant of non-performing loans for the case of the Greek banking sector. We employ aggregate yearly data for the period 1996-2016 and we conduct a Principal Component Analysis for all the Worldwide Governance Indicators (WGI) for Greece, aiming to isolate the...

Credit risk modeling remains an important research topic both for financial institutions and the academic community due to its significant contribution to the issue of a bank’s capital adequacy. In this paper we build macro models for the default rates of Greek bank’s loan portfolios....

The Japanese banking industry is an interesting one, given chronic problems related to notorious non-performing loans, originated back in the 1990s, but also due to an unprecedented monetary expansion. In this paper, we focus on the impact of quantitative easing on bank level risk, while...

The fiscal situation in an economy may have a significant impact on the evolution of Non-Performing loans (NPLs). Austerity measures limit the loan servicing capacity of households and businesses (Perotti, 1996) whereas public borrowing accelerates markedly ahead of sovereign debt and banking...

We investigate the relationship between non-performing loans (NPLs) and their fundamentals, mainly bank and macroeconomic variables. This is done based on aggregate portfolio loans in the Greek economy. Greece constitutes an interesting case to study the factors determining NPLs, given the...