The relationship between non-performing loans, banking system stability and economic activity: the case of Tunisia
Elbir Merhbene, Dorsaf
2021

Files

Abstract

This study seeks to determine the relation between non-performing loans (NPLs) and bank profitability in Tunisia. This relation appears non-linear. We estimate a threshold of NPLs using an econometric framework. We examine the determinants affecting profitability over the Q4 2010 - Q4 2019 period for 10 Tunisian banks by estimating a model showing the impact of NPLs on bank profitability. The results indicate that banks with lower non-performing loan tend to have higher profitability.

Details

Title The relationship between non-performing loans, banking system stability and economic activity: the case of Tunisia
Author Elbir Merhbene, Dorsaf
Publisher Geneva, Graduate Institute of International and Development Studies, International Economics Department
Date 2021
Pagination 18 p.
Series Graduate Institute of International and Development Studies Working Paper ; no 03/2021
Keywords
Content Type Papers and Reports
Record Created 2021-03-04
Record ID 298923
Record Appears in Academic Departments > International Economics Department
Thematics > Finance and Investment
Papers and Reports

PDF