The effect of banking Supervision on nonperforming loan Subtraction

Subject Areas : Management Accounting

اعظم احمدیان ¹ , آزاده داوودی ²

1 - ندارد
2 - ندارد

Received: 2011-12-15 Accepted : 2012-04-07 Published : 2012-06-09

Keywords: nonperforming loan, power of supervision, banking concentration ratio, banking size,

Abstract :

The paper empirically analyses the link between nonperforming loans and bankingsupervision. We employ aggregate banking, financial, economic and legalenvironment data for a panel of 30 countries over period 2000-2010. Empirical resultsindicate that higher power of supervision reduce the level of problem loans. We alsoreport a desirable impact of interaction between banking supervision and politicalstability, Return on asset and banking system risk. Our finding Support the view thatthose indicator reduce the level of problem loans.