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Macroeconomic determinants of the credit risk in the banking system : the case of the GIPSI

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Resumo:In this paper, we analyse the link between the macroeconomic developments and the banking credit risk in a particular group of countries – Greece, Ireland, Portugal, Spain and Italy (GIPSI) – recently affected by unfavourable economic and financial conditions and to which, on this matter, the literature has not given a particular attention yet. Employing dynamic panel data approaches to these five countries over the period 1997q1-2011q3, we conclude that the banking credit risk is significantly affected by the macroeconomic environment: the credit risk increases when GDP growth and the share price indices decrease and rises when the unemployment rate, interest rate, and credit growth increase; it is also positively affected by an appreciation of the real exchange rate; moreover, we observe a substantial increase in the credit risk during the recent financial crisis period. Several robustness tests with different estimators have also confirmed these results.
Autores principais:Castro, Vítor
Assunto:Credit risk Macroeconomic factors Banking system GIPSI Panel data
Ano:2012
País:Portugal
Tipo de documento:working paper
Tipo de acesso:acesso aberto
Instituição associada:Universidade do Minho
Idioma:inglês
Origem:RepositóriUM - Universidade do Minho
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author Castro, Vítor
author_facet Castro, Vítor
author_role author
contributor_name_str_mv RepositóriUM - Universidade do Minho
country_str PT
creators_json_txt [{\"Person.name\":\"Castro, Vítor\"}]
datacite.contributors.contributor.contributorName.fl_str_mv RepositóriUM - Universidade do Minho
datacite.creators.creator.creatorName.fl_str_mv Castro, Vítor
datacite.date.Accepted.fl_str_mv 2012-10-16T00:00:00Z
datacite.date.available.fl_str_mv 2012-10-16T15:44:15Z
datacite.date.embargoed.fl_str_mv 2012-10-16T15:44:15Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Credit risk
Macroeconomic factors
Banking system
GIPSI
Panel data
datacite.titles.title.fl_str_mv Macroeconomic determinants of the credit risk in the banking system : the case of the GIPSI
dc.contributor.none.fl_str_mv RepositóriUM - Universidade do Minho
dc.creator.none.fl_str_mv Castro, Vítor
dc.date.Accepted.fl_str_mv 2012-10-16T00:00:00Z
dc.date.available.fl_str_mv 2012-10-16T15:44:15Z
dc.date.embargoed.fl_str_mv 2012-10-16T15:44:15Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv https://hdl.handle.net/1822/20444
dc.language.none.fl_str_mv eng
dc.publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Credit risk
Macroeconomic factors
Banking system
GIPSI
Panel data
dc.title.fl_str_mv Macroeconomic determinants of the credit risk in the banking system : the case of the GIPSI
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_8042
description In this paper, we analyse the link between the macroeconomic developments and the banking credit risk in a particular group of countries – Greece, Ireland, Portugal, Spain and Italy (GIPSI) – recently affected by unfavourable economic and financial conditions and to which, on this matter, the literature has not given a particular attention yet. Employing dynamic panel data approaches to these five countries over the period 1997q1-2011q3, we conclude that the banking credit risk is significantly affected by the macroeconomic environment: the credit risk increases when GDP growth and the share price indices decrease and rises when the unemployment rate, interest rate, and credit growth increase; it is also positively affected by an appreciation of the real exchange rate; moreover, we observe a substantial increase in the credit risk during the recent financial crisis period. Several robustness tests with different estimators have also confirmed these results.
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eu_rights_str_mv openAccess
format workingPaper
fulltext.url.fl_str_mv https://repositorium.uminho.pt/bitstreams/0f6613bc-dbcf-461c-b6e6-b7ffa7f88ff6/download
id rum_15edebd5c765933fc9fedaea4ef22c19
identifier.url.fl_str_mv https://hdl.handle.net/1822/20444
instacron_str repositorium
institution Universidade do Minho
instname_str Universidade do Minho
language eng
network_acronym_str rum
network_name_str RepositóriUM - Universidade do Minho
oai_identifier_str oai:repositorium.uminho.pt:1822/20444
organization_str_mv urn:organizationAcronym:repositorium
person_str_mv Castro, Vítor
publishDate 2012
publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
reponame_str RepositóriUM - Universidade do Minho
repository_id_str urn:repositoryAcronym:rum
service_str_mv urn:repositoryAcronym:rum
spelling engUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)porIn this paper, we analyse the link between the macroeconomic developments and the banking credit risk in a particular group of countries – Greece, Ireland, Portugal, Spain and Italy (GIPSI) – recently affected by unfavourable economic and financial conditions and to which, on this matter, the literature has not given a particular attention yet. Employing dynamic panel data approaches to these five countries over the period 1997q1-2011q3, we conclude that the banking credit risk is significantly affected by the macroeconomic environment: the credit risk increases when GDP growth and the share price indices decrease and rises when the unemployment rate, interest rate, and credit growth increase; it is also positively affected by an appreciation of the real exchange rate; moreover, we observe a substantial increase in the credit risk during the recent financial crisis period. Several robustness tests with different estimators have also confirmed these results.application/pdfporMacroeconomic determinants of the credit risk in the banking system : the case of the GIPSICastro, VítorHostingInstitutionOrganizationalRepositóriUM - Universidade do Minhoe-mailmailto:repositorium@usdb.uminho.ptrepositorium@usdb.uminho.pt2012-10-16T15:44:15Z2012-10-162012-10-16T00:00:00ZHandlehttps://hdl.handle.net/1822/20444http://purl.org/coar/access_right/c_abf2open accessCredit riskMacroeconomic factorsBanking systemGIPSIPanel data609785 bytesother research producthttp://purl.org/coar/resource_type/c_8042working paperhttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorium.uminho.pt/bitstreams/0f6613bc-dbcf-461c-b6e6-b7ffa7f88ff6/download
spellingShingle Macroeconomic determinants of the credit risk in the banking system : the case of the GIPSI
Castro, Vítor
Credit risk
Macroeconomic factors
Banking system
GIPSI
Panel data
status SINGLETON
subject.fl_str_mv Credit risk
Macroeconomic factors
Banking system
GIPSI
Panel data
title Macroeconomic determinants of the credit risk in the banking system : the case of the GIPSI
title_full Macroeconomic determinants of the credit risk in the banking system : the case of the GIPSI
title_fullStr Macroeconomic determinants of the credit risk in the banking system : the case of the GIPSI
title_full_unstemmed Macroeconomic determinants of the credit risk in the banking system : the case of the GIPSI
title_short Macroeconomic determinants of the credit risk in the banking system : the case of the GIPSI
title_sort Macroeconomic determinants of the credit risk in the banking system : the case of the GIPSI
topic Credit risk
Macroeconomic factors
Banking system
GIPSI
Panel data
topic_facet Credit risk
Macroeconomic factors
Banking system
GIPSI
Panel data
url https://hdl.handle.net/1822/20444
visible 1