Authors

• Hamid Kordbacheh ¹
• Leila Pordel Nooshabadi ²

¹ Assistant professor of economics, Department of Economics, Bu-Ali Sina University

² M.A. of economics

Abstract

This paper estimates a dynamic panel model to examine the bank-specific and macroeconomic determinants of non-performing loans in Iranian banking sector using a sample of 12 banks over the period of 2002-2008. The findings of this paper show that prudential behaviour, size and ownership status of banks are the main statistically significant bank-specific factors of non-performing loans. For robustness of the empirical results, the model has been estimated with alternative indexes of business cycle variable. The findings of the estimated models show that the macroeconomic conditions have significant impact on the non-performing loans in the sample.
 

Keywords

• Iran
• Bank
• Non-performing Loans
• Dynamic panel model
• bank specific factors an macroeconomic conditions