The dynamics of non-performing loans during banking crises : a new database

Anil Ari, Sophia Chen, Lev Ratnovski

This paper presents a new dataset on the dynamics of non-performing loans (NPLs) during 88 banking crises since 1990. The data show similarities across crises during NPL build-ups but less so during NPL resolutions. We find a close relationship between NPL problems-elevated and unresolved NPLs-and the severity of post-crisis recessions. A machine learning approach identifies a set of pre-crisis predictors of NPL problems related to weak macroeconomic, institutional, corporate, and banking sector conditions. Our findings suggest that reducing pre-crisis vulnerabilities and promptly addressing NPL problems during a crisis are important for post-crisis output recovery.

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Year of publication:	[2020]
Authors:	Ari, Anil ; Chen, Sophia ; Ratnovski, Lev
Publisher:	Frankfurt am Main, Germany : European Central Bank
Subject:	non-performing loans \| debt \| banking crises \| recessions \| crisis resolution \| Bankenkrise \| Banking crisis \| Notleidender Kredit \| Non-performing loan \| Welt \| World \| Konjunktur \| Business cycle \| Kreditgeschäft \| Bank lending \| Finanzkrise \| Financial crisis \| Wirtschaftskrise \| Economic crisis \| Kreditrisiko \| Credit risk

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Extent:	1 Online-Ressource (circa 64 Seiten) Illustrationen
Series:	Working paper series / European Central Bank. - Frankfurt, M. : European Central Bank, ISSN 1725-2806, ZDB-ID 2123559-4. - Vol. no 2395 (April 2020)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
ISBN:	978-92-899-4038-2
Other identifiers:	10.2866/174853 [DOI] hdl:10419/229009 [Handle]
Classification:	E32 - Business Fluctuations; Cycles ; E44 - Financial Markets and the Macroeconomy ; G21 - Banks; Other Depository Institutions; Mortgages ; N10 - Macroeconomics and Monetary Economics; Growth and Fluctuations. General, International, or Comparative ; N20 - Financial Markets and Institutions. General, International, or Comparative
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012206258