Non-performing Loans and Systemic Risk: Empirical Evidence to Tunisia and Morocco
Saoussen Ouhibi*, Salma Ezzeddine and Algia Hammami
Department of Economics and Management, University of Sfax, Tunisia
- *Corresponding Author:
- Saoussen Ouhibi
University of Sfax, Tunisia
E-mail: [email protected]
Received Date: September 29, 2016; Accepted Date: April 05, 2017; Published Date: April 15, 2017
Citation: Ouhibi S, Ezzeddine S, Hammami A (2017) Non-performing Loans and Systemic Risk: Empirical Evidence to Tunisia and Morocco. Arabian J Bus Manag Review 7: 296. doi: 10.4172/2223-5833.1000296
Copyright: © 2017 Ouhibi S, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This study investigates the determinant factors of systemic risk in Tunisia and Morocco. The comparative analysis showed that Inflation, domestic credit, gross capital formation, GDP, unemployment rate is significant with non-performing loans (source of systemic risk), in Tunisia. However, in Morocco, only the exchange rate and GDP are significant. This study used time series data of NPLs ratio and nine macroeconomic variables over the period of 1994-2014. Moreover, OLS was used to test the explanatory power of macroeconomic variables as determinants of NPLs.