The Evolution of Non-Performing Credit Limits During Crisis Period, Using Unique Accounting Data
Received Date: Oct 05, 2018 / Accepted Date: Jan 24, 2019 / Published Date: Jan 31, 2019
The purpose of this paper is to study the effect of independent variables in identifying non-performing loans during crisis period, using a binomial logistic regression. We use a unique data of small business loans granted by one of the four systemic banks of Greece. Specifically we study a sample of credit limits granted to micro and small enterprises. Νon-performing loans significantly increased as the recession of Greek economy deepens. Moreover we find that in general the variables affect in the same way the creation of non-performing loans during the studied period. Specifically, binomial logistic regression shows a positive correlation between non-performing loans and factors “Adverse” and “Age”. In contrast, we find a negative correlation between the probability of classifying a loan as non-performing and the independent variables “Collateral”, “Own Facilities”, “Property” and “Years of operation”. Finally the predicted performance of the binomial logistic regression reduced as the crisis deepens.
Keywords: Banks; Non-performing loans; Micro and small enterprises; Credit scoring; Binomial logistic regression; Economic crisis
Citation: Giannopoulos V (2019) The Evolution of Non-Performing Credit Limits During Crisis Period, Using Unique Accounting Data. J Account Mark 8: 308 Doi: 10.4172/2168-9601.1000308
Copyright: © 2019 Giannopoulos V. 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.
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