Abstract
The study explores the determinants of nonperforming loans (NPLs) in the Guyanese banking sector. The panel econometric model—controlling for macroeconomic and firm-level variables—finds an appreciation in the real effective exchange rate increasing NPLs and GDP growth decreasing NPLs. We also find that banks, which charge relatively higher interest rates and have relaxed lending standards, are more likely to incur higher levels of NPLs. However, contrary to previous studies, our results do not support the view that bank size impacts significantly on NPLs.
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Khemraj, T., Pasha, S. (2016). Determinants of Nonperforming Loans in Guyana. In: Gevorkyan, A., Canuto, O. (eds) Financial Deepening and Post-Crisis Development in Emerging Markets. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-52246-7_9
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DOI: https://doi.org/10.1057/978-1-137-52246-7_9
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