Anticipating the nonperforming loans dynamics on the basis of macroeconomic credit risk models is crucial for shaping adequate economic policy mix to prevent disorderly deleveraging in the banking system. The added value of this paper is twofold. First, we apply reputed conditional risk model...

The study aims to deepen the analysis on the indirect dependence of government budget balance on private sector credit flow in the countries of Central and Eastern Europe. The added value of this approach consists of two elements. First, the analysis suggests developing the traditional...