<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper investigates the influence of three types of credit growth on non-performing loans in eleven Central and Eastern European countries during the period from 1999 to 2013. As opposed to previous research on credit risk, we have moved the focus from the usually investigated bank-specific and macroeconomic variables to different types of credit growth from earlier periods. At the same time, the results of this research give answer on the studies before the crisis, which tried to determine the possible consequences of rapid credit growth in the CEE countries. The results indicate that at least two years are necessary for each type of credit growth to increase credit risk. Finally, empirical results confirm the importance of both bank-specific and macroeconomic variables.</p></abstract>

This paper investigates the influence of three types of credit growth on non-performing loans in eleven Central and Eastern European countries during the period from 1999 to 2013. As opposed to previous research on credit risk, we have moved the focus from the usually investigated bank-specific and macroeconomic variables to different types of credit growth from earlier periods. At the same time, the results of this research give answer on the studies before the crisis, which tried to determine the possible consequences of rapid credit growth in the CEE countries. The results indicate that at least two years are necessary for each type of credit growth to increase credit risk. Finally, empirical results confirm the importance of both bank-specific and macroeconomic variables.

How did rapid credit growth cause non-performing loans in the CEE Countries?

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"How did rapid credit growth cause non-performing loans in the CEE Countries?"}

This paper investigates the influence of three types of credit growth on non-performing loans in eleven Central and Eastern European countries during the...

How did rapid credit growth cause non-performing loans in the CEE Countries?

Published Online: Jan 11, 2018

Page range: 73 - 84

DOI: https://doi.org/10.1515/jeb-2017-0019

Keywords
Credit Growth, Non-Performing Loans, CEE countries, Dynamic Panel Data

© 2017 South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

How did rapid credit growth cause non-performing loans in the CEE Countries?

Published Online: Jan 11, 2018

Page range: 73 - 84

DOI: https://doi.org/10.1515/jeb-2017-0019

KeywordsCredit Growth, Non-Performing Loans, CEE countries, Dynamic Panel Data

© 2017 South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Credit Growth, Non-Performing Loans, CEE countries, Dynamic Panel Data