Nonperforming Loans and Macrofinancial Vulnerabilities in Advanced Economies
Download or Read eBook Nonperforming Loans and Macrofinancial Vulnerabilities in Advanced Economies PDF written by Ms.Mwanza Nkusu and published by International Monetary Fund. This book was released on 2011-07-01 with total page 28 pages. Available in PDF, EPUB and Kindle.
| Author | : Ms.Mwanza Nkusu |
| Publisher | : International Monetary Fund |
| Total Pages | : 28 |
| Release | : 2011-07-01 |
| ISBN-10 | : 9781455297740 |
| ISBN-13 | : 1455297747 |
| Rating | : 4/5 (40 Downloads) |
Book Synopsis Nonperforming Loans and Macrofinancial Vulnerabilities in Advanced Economies by : Ms.Mwanza Nkusu
Book excerpt: We analyze the link between nonperforming loans (NPL) and macroeconomic performance using two complementary approaches. First, we investigate the macroeconomic determinants of NPL in panel regressions and confirm that adverse macroeconomic developments are associated with rising NPL. Second, we investigate the feedback between NPL and its macroeconomic determinants in a panel vector autoregressive (PVAR) model. The impulse response functions (IRFs) attribute to NPL a central role in the linkages between credit market frictions and macrofinancial vulnerability. They suggest that a sharp increase in NPL triggers long-lived tailwinds that cripple macroeconomic performance from several fronts.
