Subject: credit activity, financial stability, market capitalization, credit growth, credit booms, non-performing-loans, source of financing
Year: 2016
Type: Proceedings
Title: Determinants of Bank Credit Growth in Macedonia
Author: Petkovski, Mihail
Author: Naumovska, Elena
Author: Jovanovski, Kiril
Author: Trenovski, Borce
Abstract: The subject of this paper is the credit growth in the Republic of Macedonia and the way in which it contributes to the financial development process. Two types of approach are used in the paper in order to estimate credit growth in the Republic of Macedonia. The first is the statistical approach, based on deviations of the Credit/GDP ratio series in their long-term trend. The second is the econometric approach based on using an error correction model in order to explain the level of credit growth as a function of economic fundamentals. The basic purpose of this paper is to explore the two-way relationship between the sustainability of credit growth and key developments in macroeconomic and financial fundamentals. According to the obtained results the paper provides suggestions for maintaining sustainability of the credit growth in the Republic of Macedonia which would result with a positive impact on the financial sector development. Our findings show that the Macedonian banking sector has not experienced credit booms, even though a rapid credit growth and a deviation of the Credit / GDP indicator from its long-run trend in the period before the last financial crisis have been detected.
Publisher: Ss. Cyril and Methodius University in Skopje, Faculty of Economics - Skopje
Relation: Conference proceedings of the International Conference "The Changing Role of Finance in Today's Global Economy""
Identifier: oai:repository.ukim.mk:20.500.12188/4734
Identifier: Petkovski, M., Naumovska, E., Jovanovski, K., Trenovski, B. (2016): Determinants of Bank Credit Growth in Macedonia, "The Changing Role of Finance in Today's Global Economy", Ss. Cyril and Methodius University in Skopje, Faculty of Economics - Skopje
Identifier: http://hdl.handle.net/20.500.12188/4734Identifier: https://www.researchgate.net/publication/313242660_Determinants_of_Bank_Credit_Growth_in_Macedonia
