Determinants of nonperforming loans in the Southern Mediterranean countries


  • Saoussen Ouhibi faculty of economics and managment of sfax
  • Sami Hammami





Banking Sectors, Macroeconomic Determinants, Non-Performing Loans.


The main aim of this paper is to examine the determinants of financial soundness indicators (non-performing loans) of the banking system. There are several factors that lead to the growth or decline of non-performing loans, such as macroeconomic variables. This study uses a sample of six out often countries of the Southern Mediterranean (Tunisia, Morocco, Egypt, Lebanon, Jordan and Turkey) that were analyzed over the period of 2000 to 2012. Our result shows that the non-performing loans negatively depend on the nominal exchange rate, the consumer price index and the gross capital formation.


[1] Ali, S. (2013), « The Impact of Macroeconomic Variables on the Non-Performing Loans in the Albanian Banking System during 2005 – 2012 », Academic Journal of Interdisciplinary Studies, Vol. 2, No. 9, pp .335-339.

[2] Carlos, A., Olaya Bonilla (2012): «Macroeconomic determinants of the Non-Performing Loans in Spain and Italy », Department of Economics University of Leicester.

[3] Dimitrios, P. L., Angelos, T.V., Vasilios, L.M. (2011) , « Macroeconomic and bank-specific determinants of non-performing loans in Greece: A comparative study of mortgage, business and consumer loan portfolios », Journal of Banking & Finance,

[4] Faward, A., Taqodus, B. (2013), « Explanatory Power of Bank Specific Variables as Determinants of Non-Performing Loans: Evidence form Pakistan Banking Sector », World Applied Sciences Journal, Vol .22, No.9, pp. 1220-1231.

[5] Güngör, T., Arjeta, K. (2014), « Nonperforming Loans in Albania », Academic Journal of interdisciplinary studies, vol.3, No.3, pp.491-500.

[6] Khemraj, T., Sukrishnalall,P.(2009), « The Determinants of Non-Performing Loans: An Econometric Case Study of Guyana », Munich Personal RePEc Archive

[7] M, Nkusu (2011), « Nonperforming Loans and Macro financial Vulnerabilities in Advanced Economiesâ€, IMF Working paper, WP/11/161, July, 2011.

[8] Mejra, F. (2009), « Financial Stability in the Baltics », Journal of Economics and Finance, vol.59, No6, pp.

[9] Muhamed, F. A, Sattar. A, H, Chaudhry. F, Khalil (2012), « Economic Determinants of Non-Performing Loans: Perception of Pakistani Bankers », European journal of business and Management, vol 4, No 19, 2012.

[10] Munib, B., Atiya, J. Y. (2013), « Impact of Macroeconomic Forces on Nonperforming Loans: An Empirical Study of Commercial Banks in Pakistan », Wseas Transactions on Business, Issue 1, Vol.10,pp 40-48.

[11] Nir, K. (2013), « Non-Performing Loans in CESEE: Determinants and Impact on Macroeconomic Performance », IMF Working Paper, Vol .13, No.72.

[12] Peter, P. (2012), « Macro prudential supervision tools in the European system » Procedia Economics and Finance, vol. 3, pp. 642-647.

[13] Garry, J.Schinasi (2005): « préserver la stabilité financière », le Fonds monétaire international, dossiers économiques No.36.

[14] Skarica, B. (2014), « Determinants of non-performing loans in Central and Eastern European countries », financial theory and practice, Vol.38, No. 1, pp.37-59.

View Full Article: