Macroeconomic determinants of non-performing loans: An application in deposit banks

The aim of this study is to investigate the factors affecting non-performing loan rates for deposit banks. In the study, ARDL bounds test was applied using monthly data according to loan types of deposit banks operating in Turkey in the 2018-2022 period. As a result of the analysis, no cointegration could be detected between the non-performing housing loan rate and the non-performing vehicle loan rate with the inflation rate, unemployment rate and dollar exchange rate. On the other hand, it has been determined that there is a cointegration relationship between non-performing consumer loans and the inflation rate, unemployment rate and dollar exchange rate. With long-term coefficient estimates, it has been concluded that the increase in inflation and dollar exchange rate reduces the rate of non-performing consumer loans. The effect of the unemployment rate on non-performing consumer loans cannot be explained statistically. Keywords: Non-Performing Loans, Banking, Macroeconomic Factors.