Fawad Ahmad
Postdoc
Corruption and Information Sharing as Determinants of Non-Performing Loans
Författare
Summary, in English
Background: There are several factors that lead to the growth or decline of the nonperforming loans, such as macroeconomic variables and bank specific variables, banks ownership structure, corruption and information sharing. Among them one of the main
factors that affect the non-performing loans are the corruption. In developing countries corruption plays very important role in the growth of non-performing loans. Objectives: This study investigates the impact of corruption at economy level and institution level on the nonperforming loans. This study also examines the association of information sharing between depositors, lenders and financial institutions. Methods/Approach: The current study used time series data over the period of 2001 to 2010 and employed OLS method. Results: The results provide no significant association of corruption and information sharing with non-performing
loans. Conclusions: The results suggest no significant impact of corruption on non-performing loans because of the nature of the data used, but as literature provides significant impact of corruption on non-performing loans, therefore State Bank of Pakistan and commercial banks can reduce the level of non-performing loans by reducing the chance of corrupt practices by following the rules and regulation of credit allocation, supervision and loan monitoring.
factors that affect the non-performing loans are the corruption. In developing countries corruption plays very important role in the growth of non-performing loans. Objectives: This study investigates the impact of corruption at economy level and institution level on the nonperforming loans. This study also examines the association of information sharing between depositors, lenders and financial institutions. Methods/Approach: The current study used time series data over the period of 2001 to 2010 and employed OLS method. Results: The results provide no significant association of corruption and information sharing with non-performing
loans. Conclusions: The results suggest no significant impact of corruption on non-performing loans because of the nature of the data used, but as literature provides significant impact of corruption on non-performing loans, therefore State Bank of Pakistan and commercial banks can reduce the level of non-performing loans by reducing the chance of corrupt practices by following the rules and regulation of credit allocation, supervision and loan monitoring.
Publiceringsår
2013
Språk
Engelska
Sidor
87-98
Publikation/Tidskrift/Serie
bsrj
Volym
4
Issue
1
Dokumenttyp
Artikel i tidskrift
Förlag
De Gruyter
Ämne
- Business Administration
Aktiv
Published
ISBN/ISSN/Övrigt
- ISSN: 1847-9375