Hellenic Open University Conferences, International Conference on Business & Economics of the Hellenic Open University 2015

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THE DETERMINANTS OF NON-PERFORMING LOANS IN THE GREEK BANKING SECTOR. ISSUES IN THE CREDIT RISK OF SMEs DURING CRISIS
Ioannis Giannoukos

Building: Titania
Room: Socratis
Date: 2015-02-07 09:00 AM – 10:45 AM
Last modified: 2015-01-27

Abstract


ABSTRACT:

This paper analyses the non performing loans determinants and the determinants of the credit risk of small and medium enterprises in the Greek banking sector during crisis (2008 – 2013). Although the literature on NPLs is extensive, we document the positive relationship (strongly significance) between NPLS and unemployment, during the Greek crisis. Moreover, the aim of the research is to qualify the important current determinants of credit risk of SMEs since 2008. The estimation of the performance and the profit decrease, the business optimism, the financial ability and knowledge of entrepreneurs, based on the opinions of small business loan officers, reveals the importance of market risk, including recession and liquidity shortage. Our research results are on line with other studies and appear to exert influence for future research.


Keywords


Non-performing loans, unemployment, small and medium-sized enterprises (SME), credit risk, commercial Banks