简介：

简介：Thispaperexploresthemacroeconomicdeterminantsofnon-performingloans(NPL)in19Asiancountries(lowtohighincomeeconomies)usingtheGeneralizedMethodofMomentsestimationapproachbasedontheeconomicdatafortheperiodbetween1998and2015.ThecategorizationoftheeconomiesisbasedontheaveragegrossnationalincomepercapitaassetbytheWorldBank.Specifically,thepaperaimstoevaluateifthedeterminantsofNPLvarywiththeincomelevelsofthecountries.TheresultsindicatethattheNPLisstronglyinfluencedbytheinflationrate.Theeffectis,however,negativeinthehigh-incomeandthemiddle-incomecountriesandpositiveinthelow-incomecountries.TheGDPpercapitahasadynamicnegativerelationshipwiththeNPLinthehigh-incomeandthelow-incomecountries.Theremittancehasasignificantpositiveassociationinthehigh-incomeandasignificantnegativeassociationinthelow-incomecountries.Similarly,theunemploymentratehasapositiveeffectonNPLinthemiddle-incomeandthelow-incomecountries.Withtheriseintheofficialexchangerate,theNPLlevelincreasesinthelow-incomecountries.TheoverallestimationresultssuggestthattheNPLinAsianbankingsystemdependonsomekeymacroeconomicvariables,suchasunemploymentrate,inflationrate,officialexchangerate,remittancereceivedandgrossdomesticproductpercapita,andtheseassociationsvarywiththeincomelevelofthecountries.Therefore,economiclevelofacountryshouldbecarefullyconsideredwhileformulatingcreditpolicytominimizecreditrisksinthebankingsystem.