The Impact of Institutional Environment on the Asset Quality of Banks: A Study in Upper-Middle-Income Countries

Abstract

The Non-Performing Loans (NPLs) are a significant indicator of asset quality in banks. In this study, the impact of the institutional environment on NPLs in upper-middle-income countries during the period of 2010-2019 is investigated using the dynamic panel data analysis method. According to the findings obtained from the analyses, institutional quality has a significantly negative effect on NPLs. The lagged value of NPLs, on the other hand, positively influences the current period's NPLs. Additionally, concerning control variables, economic growth and non-interest income negatively affect NPLs, while the credit/deposit ratio and the inflation rate have a positive impact on NPLs.

Keywords

• Asset Quality
• Non-performing Loans
• Credit Risk
• Institutional Environment
• Upper Middle-Income Countries.

Kurumsal Ortamın Bankaların Varlık Kalitesi Üzerine Etkisi: Yüksek Orta Gelirli Ülkelerde Bir Araştırma

Abstract

Takipteki krediler, bankalarda varlık kalitesinin önemli bir göstergesidir. Bu çalışmada, 2010-2019 döneminde üst orta gelirli ülkelerde kurumsal ortamın takipteki krediler üzerindeki etkisi dinamik panel veri analizi yöntemiyle araştırılmaktadır. Yapılan analizler neticesinde elde edilen bulgulara göre, kurumsallık takipteki krediler üzerinde önemli düzeyde negatif bir etki oluşturmaktadır. Takipteki kredilerin gecikmeli değeri ise mevcut dönem takipteki krediler üzerinde pozitif yönde etkilidir. Ayrıca kontrol değişkenleri açısından ekonomik büyüme ve faiz dışı gelirler takipteki krediler üzerinde negatif etkili iken kredi/mevduat oranı ve enflasyonun etkisi pozitiftir.

Keywords

• Varlık Kalitesi
• Takipteki Krediler
• Kredi Riski
• Kurumsal Ortam
• Üst-Orta Gelirli Ülkeler.

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