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What drives bank coverage ratios : evidence from the euro area

Alessi, Lucia; Bruno, Brunella; Carletti, Elena; … - 2019

We analyse micro and macro drivers of coverage ratios in a cross–country sample of euro area banks. Among the former, we find that coverage ratios increase with the reliance on deposit funding and when asset quality is very poor. Among the latter, coverage ratios increase with GDP growth and...

Persistent link: https://www.econbiz.de/10012058355

Does credit growth in the EMU banking sector follow its capital adequacy?

Veselinovič, Draško; Fabijan, Janez; Vadnjal, Jaka - In: Journal of central banking theory and practice 12 (2023) 2, pp. 33-62

Union (EMU) banking sector. The paper's central hypothesis that capital adequacy of the EMU banking sector influenced credit …, the sub-hypothesis that higher capital adequacy resulted in negative credit growth was supported for the crisis period. We …

Persistent link: https://www.econbiz.de/10014316648

The economic impact of the NPL coverage expectations in the euro area

Budnik, Katarzyna; Dimitrov, Ivan; Groß, Johannes; … - 2022

This paper looks at the macroeconomic impact of the two policies proposed by ECB Banking Supervision to tackle the high share of non-performing loans (NPLs) on the balance sheets of euro area banks. The first is the coverage expectations for new NPLs set out in the Addendum to the ECB's NPL...

Persistent link: https://www.econbiz.de/10013286744

Cover Your Assets : Non-Performing Loans and Coverage Ratios in Europe

Lucia, Alessi; Bruno, Brunella; Carletti, Elena; … - 2021

] in a large sample of European banks. We find that bank-specific factors, particularly credit risk variables (including …

Persistent link: https://www.econbiz.de/10013323069

Economic policy uncertainty, bank nonperforming loans and loan loss provisions : are they correlated?

Ozili, Peterson K. - In: Asian journal of economics and banking : AJEB 6 (2022) 2, pp. 221-235

Purpose - This paper examines the correlation of economic policy uncertainty (EPU) with nonperforming loans and loan loss provisions for 22 major developed countries over the 2008-2017 period. Design/methodology/approach - The study used the Pearson correlation methodology to assess the...

Persistent link: https://www.econbiz.de/10013352701

The Euro Area Bank Lending Survey Matters : Empirical Evidence for Credit and Output Growth

Bondt, Gabe J. de; Maddaloni, Angela; Peydró, José-Luis; … - 2021

This study examines empirically the information content of the euro area Bank Lending Survey for aggregate credit and … leading indicator for euro area bank credit and real GDP growth. Notwithstanding the short history of the survey, the findings … also suggest that price as well as non-price conditions and terms of credit standards do matter for credit and business …

Persistent link: https://www.econbiz.de/10013316257

Non-Performing Loans, Cost of Capital, and Lending Supply : Lessons From the Eurozone Banking Crisis

Chiesa, Gabriella - 2018

-performing loans (NPLs) on bank cost of capital, credit and liquidity creation in the Eurozone. Empirical results confirm the model …-term. Moreover, the increased cost of capital reduces credit and liquidity creation, and the more so the less capitalized is the bank …

Persistent link: https://www.econbiz.de/10012916781

Non-Performing Loans, Cost of Capital, and Lending Supply : Lessons from the Eurozone Banking Crisis

Chiesa, Gabriella - 2018

Persistent link: https://www.econbiz.de/10012910220

Non-Performing Loans in European Systemic and Non-Systemic Banks

Ozili, Peterson K - 2019

I examine the behaviour of non-performing loans in European systemic and non-systemic banks. The distinction between systemic banks (GSIBs) and non-systemic banks (non GSIBs) is driven by policy reasons. The findings reveal that more profitable banks witness higher non-performing loans...

Persistent link: https://www.econbiz.de/10012870125

Do non-performing loans matter for bank lending and the business cycle in euro area countries?

Huljak, Ivan; Martin, Reiner; Moccero, Diego; Pancaro, … - 2020

We contribute to the empirical literature on the impact of non-performing loan (NPL) ratios on aggregate banking sector variables and the macroeconomy by estimating a panel Bayesian VAR model for twelve euro area countries. The model is estimated assuming a hierarchical prior that allows for...

Persistent link: https://www.econbiz.de/10012216605