Bank Specific Determinants of Credit Risk - An Empirical Study on the Banking Sector of Bosnia and Herzegovina
International Journal of Economic Practices and Theories
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Title |
Bank Specific Determinants of Credit Risk - An Empirical Study on the Banking Sector of Bosnia and Herzegovina
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Creator |
Ganić, Mehmed
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Subject |
Finance and accounting
credit risk, banking sector, Non-performing Loans (NPLs), Indicators of quality assets, Bank specific determinants C33, G21 |
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Description |
The main aim of this paper is to examine the influence of bank specific determinants on realization of credit risk in the portfolio of commercial banks in Bosnia and Herzegovina (B&H). This study comprises a sample of seventeen out of twenty eight planned banks that are analyzed over the period of 2002 to 2012. The effect of variations in the determinants of bank credit risk exposure is based on using a multivariate panel regression model. Our empirical results suggest that a significant relationship exists between credit risk and the following variables:[Inefficiency (IE), profitability (ROE), Credit growth (CG) and Deposit rate (DR) while variables Solvency (SR), Loans to deposit ratio (LTD), Market power (MP), profitability (ROA) and Reserve ratio (RR)] are not statistically significant in terms of credit risk
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Publisher |
International Journal of Economic Practices and Theories
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Contributor |
International University of Sarajevo
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Date |
2014-07-01
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://www.ijept.org/index.php/ijept%20/article/view/Bank_Specific_Determinants_of_Credit_Risk
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Source |
International Journal of Economic Practices and Theories; Vol 4, No 4 (2014); 428-436
2247 – 7225 |
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Language |
eng
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Relation |
http://www.ijept.org/index.php/ijept%20/article/view/Bank_Specific_Determinants_of_Credit_Risk/pdf_16
http://www.ijept.org/index.php/ijept%20/article/downloadSuppFile/Bank_Specific_Determinants_of_Credit_Risk/23 http://www.ijept.org/index.php/ijept%20/article/downloadSuppFile/Bank_Specific_Determinants_of_Credit_Risk/24 |
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