Title: What determines non-performing loans? A systematic literature survey and directions for prospective research

Authors: Sonia Chawla; Seema Rani

Addresses: Department of Humanities and Management, Dr. B R Ambedkar National Institute of Technology, Jalandhar, 144011, India ' IKG Punjab Technical University, Kapurthala, Punjab 144603, India

Abstract: The issue of non-performing loans (NPLs) has been ascribed great pertinence by policy makers, in India and worldwide as well, and presently been tackled with diverse initiatives. Any regulatory and policy initiative demands in-depth insights of the underlying determinants of the same. The increased data available on NPLs has enabled the researchers to conduct more exhaustive research. The present study is a systematic literature survey of 63 studies of peer reviewed journals, on determinants of NPLs, relating to a period from 1987 to 2020. For exhibiting new interpretation, we have integrated three broader dimensions of NPLs viz. macroeconomic, bank-specific and credit/debt-specific and employed an open coding process. This process of literature synthesis took us to 11 sub-groups. The outcome exhibits that still there is a dearth of in-depth understanding of the interaction of credit specific events with external and bank-specific factors and entitles for more research endeavours.

Keywords: non-performing loans; NPLs; determinants; open coding process; disaggregated aspects; literature review.

DOI: 10.1504/GBER.2021.118213

Global Business and Economics Review, 2021 Vol.25 No.2, pp.154 - 176

Received: 24 Jan 2021
Accepted: 15 Apr 2021

Published online: 15 Oct 2021 *

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