Governance matters on non-performing loans: Evidence from emerging markets
Künye
Byükoğlu, B., Şit, A., & Ekşi, İ. H. (2021). Governance matters on non-performing loans: Evidence from emerging markets. PSL Quarterly Review, 74 (296), 75-91Özet
In this study, new determinants of non-performing loans (NPL) for the MSCI emerging countries were investigated. For this purpose, a new index was formed using the World Bank’s Worldwide Governance Indicator data from 2002 to 2018. To test the effect of governance on NPL, we used the GMM technique. As a robustness test for GMM results, we employed the DOLSMG technique. According to the results, NPL was affected negatively by the DOI: governance index. This result could be of interest to policymakers and regulators as a macroprudential policy tool.