Supervisors info:
Ιωάννης Κ. Δημητρίου, Καθηγητής Τομέα Μαθηματικών και Πληροφορικής, Τμήμα Οικονομικών Επιστημών, Εθνικό και Καποδιστριακό Πανεπιστήμιο Αθηνών
Summary:
The global financial crisis and subsequent recession have left many countries with elevated levels of nonperforming loans (NPLs). NPLs in the European Union (EU) stood at about €1 trillion or over 9% of the region’s GDP. NPL is an important global issue, because persistently high NPLs hold down credit growth and economic activity and set obstacles to exit from the financial crisis. At the end of September 2015, the two countries which had to implement strict capital controls, Greece and Cyprus, reported NPL ratio of more than 40%, while moreover the same period the EU the average rate of non-performing loans is 5.9%. Bulgaria, Croatia, Hungary, Ireland, Italy, Portugal, and Romania all reported gross NPL ratio between 10% and 20%. Non-Performing Loan (NPL) in Greece has become a constant political and economic issue in recent years. This thesis attempts to identify through regression analysis factors that affect non-performing loans (NPL) and constantly growing. By applying linear regression between the dependent and explanatory variables, we conclude that the NPL are influenced positively by the unemployment of the previous and the current year. Although our findings are highlighting the political aspect of the issue, the conclusions indicate policies towards decreasing the NPL ratio.
