scholarly journals Determining the relationship between non-performing loans, economic growth, and asset size: An application in Turkish Participation Banking Sector

2019 ◽  
Vol 8 (1) ◽  
pp. 106-123 ◽  
Author(s):  
Mehmet APAN ◽  
Mehmet İSLAMOĞLU
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Asset Size ◽  
The Relationship

Comparison of International Differences in the Volatility of Economic Growth and Non-Performing Loan Ratio: A Statistical Study Based on the Quantile Regression Model

2017 ◽  
Vol 21 (6) ◽  
pp. 1094-1101
Author(s):  
Song Qin ◽  
Zhenlei Wang ◽  
◽  
◽  
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Quantile Regression ◽  
Regression Models ◽  
Banking Sector ◽  
Statistical Study ◽  
Quantile Regression Model ◽  
The Us ◽  
The Impact ◽  
The Relationship

What is the level of non-performing loans in China’s banking sector and in different countries? Has the relationship between economic growth and the non-performing loan ratio changed? Is there a difference in the effect of the economic growth of different economies on the rate of non-performing loans in the banking sector? This study analyzes the relationship between economic growth and the non-performing loan ratios and characteristics of 13 countries from 2005-2014 based on quantile regression models with panel data. The results showed that the relationship between economic growth and the non-performing loan ratio was positive before the financial crisis in 2008 but was negative after 2008. The non-performing loan ratio in Canada, Mexico, and the US was low before 2008 and high after 2008. The impact of economic growth on the non-performing loan ratio was more significant for countries with a high non-performing loan ratio than for countries with a low non-performing loan ratio.

scholarly journals The Influence of the Banking Sector Functions on Economic Activity in Macedonia

2015 ◽  
Vol 62 (2) ◽  
pp. 208-221
Author(s):  
Elena Naumovska ◽  
Kiril Jovanovski ◽  
Gorgji Gockov
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Relative Importance ◽  
Basic Functions ◽  
Basic Purpose ◽  
The Subject ◽  
Sector Performance ◽  
The Republic ◽  
The Impact ◽  
The Relationship

Abstract The subject of this paper is the way in which the banking sector in Macedonia contributes to the economic growth by performing five basic functions: savings mobilization, risk diversification, resource allocation, corporate control and easing exchange. The basic purpose of this paper is, through assessment of the relative importance of each of the functions of the banking sector and analysis of the relationship existing between the banking sector intermediation and economic growth (as measured by GDP) to investigate the impact of the banking sector on the real sector performance in the Macedonia. According to the obtained results the paper provides conclusions for opportunities and directions for increasing the efficiency of the banking sector in the Republic of Macedonia.

scholarly journals Exploring the causality between economic growth, financial development and inflation in sixteen high-income countries

2021 ◽  
Vol 22 (45) ◽  
Author(s):  
José Alberto Fuinhas ◽  
Matheus Koengkan ◽  
Matheus Belucio
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Banking Sector ◽  
High Income ◽  
Market Development ◽  
Impulse Response Functions ◽  
Vector Autoregressive ◽  
Stock Market Development ◽  
Banking Sector Development ◽  
The Relationship

This paper examined the relationship between economic growth, inflation, stock market development, and banking sector development for a panel of sixteen high-income countries for the period from 2001 to 2016, by using the mechanism impulse response functions and Granger causality tests derived from a panel vector autoregressive model. The evidence of bidirectional causality between all variables in the model was found. Overall, feedback and supply-leading theories have been confirmed in the literature. A plus sign in the relationship between the development of the banking sector and the stock market with economic growth was found. Therefore, stock market development and banking sector development stimulate the economy.

scholarly journals The Relationship between Innovation, Financial Development, and Economic Growth : Testing in ASEAN Countries for the Period 1986-2015

2019 ◽  
Vol 2 (1) ◽  
pp. 23-48
Author(s):  
Diah Saputri ◽  
Harmadi Harmadi
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Banking Sector ◽  
Secondary Data ◽  
Principal Component ◽  
Causality Test ◽  
Asean Member ◽  
The World ◽  
The Difference ◽  
The Relationship

This study aims to determine the relationship between innovation, financial development, and economic growth. Innovation is measured by patents, and economic growth is measured by the percentage of GDP per capita, while financial development is measured by seven indicators, namely banking sector development. Index formation is done through the Principal Component Analysis (PCA), with the note of the variable were defined earlier. This study uses data from ten ASEAN member countries with observation periods from 1986-2015. Research data is secondary data derived from the World Development Indicator and Global Financial Development at the World Bank. The analytical method used in this study is granger causality test, VECM, and IRF and FEVD analysis. The results showed that there were several differences in results in the direction of the three relationships. This difference is due to the difference in proxy that used in the study. There are three cases in this study. Broadly speaking, the relationship between financial development and economic growth is a unidirectional causality from financial development to economic growth. On the other hand, testing on economic growth with innovation shows a bidirectional causality. On the relationship between financial development and innovation, there are unidirectional causality from innovation to financial development. Nevertheless, the relationship between the three variables shows a long-term relationship.

scholarly journals SYNERGY OF THE BANKING AND SOCIO-ECONOMIC SECTORS UNDER THE INFLUENCE OF THE STATE REGULATOR

2019 ◽  
pp. 147-151
Author(s):  
Г.О. Кришталь ◽  
Т.В. Капелюшна
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
The State ◽  
The Other ◽  
Economic Sector ◽  
Social Sector ◽  
Economic Sectors ◽  
Close Relationship ◽  
State Regulator ◽  
The Relationship

The article examines the factors that influence the relationship between the banking and socio-economic sectors, which testifies to their close relationship: the capabilities and potential of one sector increase as the other sector develops. The issues of sector synergy in the system of interaction between the bank and the state regulator, the banking and economic sector and the banking and social sector, both in theoretical, methodological and practical aspects, remain insufficiently developed. Banking entities should give the opportunity to use all opportunities to maximize profits without restriction in a period of economic growth, which will provide enough painless support to businesses in order to retain and develop full-fledged, strong partners in the future. The implementation of the principle should be temporary, and the costs of the banking sector can be offset by economic growth.

Trends in Banking

2016 ◽  
Author(s):  
Xavier Vives
Keyword(s):  
Economic Growth ◽  
Systemic Risk ◽  
Business Models ◽  
Banking Sector ◽  
Financial Innovation ◽  
Market Concentration ◽  
Shadow Banks ◽  
Regulatory Changes ◽  
The Relationship

This chapter discusses basic trends in the banking sector that are being driven by technological and regulatory changes. It first considers the expansion of banking and financial intermediation, the relationship between the growth of the financial sector and economic growth, and the link between financial innovation and systemic risk. In particular, it examines the role of market-based banking, securitization, and shadow banks in the 2007–2009 crisis. It then describes the evolution of business models in banking, the entry of new competitors to banks, and the evolution of competition. It also looks at the evolution of market concentration out of the consolidation move that has followed the transformation of banking. It shows that increasing competition and the transformation in the banking sector has developed in parallel with a process of concentration.

scholarly journals Uncovering the Dynamic Relationship between Credit and Sustainable Economic Growth in Selected CEE Countries

2021 ◽  
Vol 13 (11) ◽  
pp. 6349
Author(s):  
Adam Altăr ◽  
Matei Nicolae Kubinschi ◽  
Alina Zaharia
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Emerging Market ◽  
Strong Relationship ◽  
Financial Sector ◽  
Dynamic Framework ◽  
Dynamic Relationship ◽  
Sustainable Economic Growth ◽  
The Relationship

Establishing a functional financial sector has been one of the pillars of transition to a functional market economy over the last three decades in the CEE region. The present paper provides a comprehensive analysis of the relationship between credit and economic growth in selected CEE countries, namely, Czechia, Romania, Poland and Hungary, aiming to answer questions related to (i) the role of the banking sector in fostering sustainable economic growth and the causality direction between the financial and real sector, (ii) the relationship between consumption and investment and certain categories of loans and (iii) the identification of loan supply shocks and their role in explaining the dynamics associated with other macroeconomic variables. Using a time-varying parameter structural vector autoregression model with stochastic volatility (TVP-SVAR) and sign restrictions, we identify a non-financial corporations (NFC) credit supply shock and an investment shock. Potential policy solutions to ensure a sound contribution of the financial sector to economic growth in the analyzed economies relate to the strong relationship identified between the two variables. From this perspective, the study is among the first to employ a robust dynamic framework for assessing the role of the financial sector in fostering sustainable economic growth in European emerging market economies.

Bank branching, concentration, and local economic growth in pre-WW1 England and Wales

2020 ◽  
Author(s):  
Walter Jansson
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Instrumental Variable ◽  
Fixed Effects ◽  
Banking Sector ◽  
Positive Impact ◽  
Local Economic Growth ◽  
Panel Fixed Effects ◽  
The Relationship ◽  
Bank Branching

Abstract This paper explores the relationship between the spread of bank offices, banking sector concentration, and economic growth in English and Welsh counties in the four decades before WW1. During this period, banks rapidly expanded their branch networks, while banking sector concentration increased. Findings from both panel fixed effects and instrumental variable regressions suggest that an increase in the number of bank offices in English and Welsh counties had a positive impact on local economic growth. There is no evidence of banking sector concentration being negatively associated with local economic performance prior to WW1.

scholarly journals The relationship between banks' credit activity and economic growth: An empirical research for the Republic of Serbia

Industrija ◽  
2020 ◽  
Vol 48 (2) ◽  
pp. 37-53
Author(s):  
Milka Grbić ◽  
Stevan Luković
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Research Study ◽  
Causality Test ◽  
Real Gdp ◽  
Gdp Growth Rate ◽  
Interactive Relationship ◽  
The Republic ◽  
The Relationship ◽  
Different Order

The subject matter of the research study conducted in this paper is the interactive relationship between banks' credit activity and economic growth. In connection with that, the paper is aimed at examining the existence and direction of the cause and effect relationship between the credit activity of the banking sector and the overall economic activity in the Republic of Serbia. The quarterly data related to the period from 2003 to 2019 were collected for the purposes of the research. The share of the loans granted to enterprises in the GDP and the share of the loans granted to households in the GDP are used as the indicators of the credit activity in the study, whereas the real GDP growth rate is determined as the indicator of economic growth. Given the fact that the observed time series are of the different order of integration, the analysis is conducted within the VAR model by applying the Toda-Yamamoto procedure of the Granger causality test. The results of the research show a significant unidirectional causal relationship according to Granger, which starts from the direction of banks' credit activity towards economic growth. The results of the conducted research study can be useful to the makers of the economic policy and the creators of a strategy for the development of the national economy.

Sign in / Sign up

Export Citation Format

Share Document