Impact of National Economic Conditions on the Level of Non-Performing Loans in the Commercial Banks of Cyprus

DOI

10.2991/aebmr.k.200324.047How to use a DOI?

Keywords

Non-performing loans, Commercial banks, Public Debt, Budget Balance, Interest Rate, Coefficient of Correlation, Coefficient of determination

Abstract

The purpose of this paper is to assess and analyse the impact of the national economic conditions on the Level of Non-performing loans (NPLs) in the Commercial banks of Cyprus, as well as determine the nature and magnitude of relationship between them. The object of this study is the existing scientifically based theoretical approaches to the study of non-performing loans, as well as economic processes that affected the dynamic of those loans. The paper reviews the impact of the changes in national economic conditions on the Level of Non-performing loans in the Commercial banks of Cyprus between 2005 and 2018. The national economic conditions studied include: Public Debt, Budget Balance and Interest Rate. The results of this study confirms that statistically significant linear dependency exists between Public Debt, Interest Rate and NPLs in Cyprus. In turn, the study confirms that there is not enough evidence to prove that statistically significant linear dependency exists between Budget Balance and NPLs in Cyprus.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Tatjana Ptasica
PY  - 2020
DA  - 2020/03/30
TI  - Impact of National Economic Conditions on the Level of Non-Performing Loans in the Commercial Banks of Cyprus
BT  - Proceedings of the “New Silk Road: Business Cooperation and Prospective of Economic Development” (NSRBCPED 2019)
PB  - Atlantis Press
SP  - 252
EP  - 257
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200324.047
DO  - 10.2991/aebmr.k.200324.047
ID  - Ptasica2020
ER  -