CEU Electronic Theses and Dissertations, 2024
| Author | Haluska, Jakub |
|---|---|
| Title | Macroeconomic Determinants of Non-Performing Loans in the Euro Area |
| Summary | This thesis investigates the relationship between short-term interest rates, Basel III, and banks’ non-performing loans in the Euro area. It argues that there is a negative relationship between short-term interest rates and Bank NPL_(t+1), which indicates an increase in Bank NPL_(t+1) when short-term interest rates decrease. In addition, the study reveals a positive relationship between Basel III and Bank NPL_(t+1). This confirms the initial hypothesis that Basel III puts significant burden on banks’ profitability and therefore increases Bank NPL_(t+1). Our emprirical data do not show causal relationship due to endogeneity and multicollinearity. To lay the foundation for the future research, we suggest additional macroeconomic determinants of NPL such as net GDP growth and form of governance as potential independent variables. |
| Supervisor | Lee, Tomy |
| Department | Undergraduate Studies BA |
| Full text | https://www.etd.ceu.edu/2024/haluska_jakub.pdf |
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