The determinants of bank’s credit risk: ---An empirical study of UK commercial banks

Xu, zeyang (2019) The determinants of bank’s credit risk: ---An empirical study of UK commercial banks. [Dissertation (University of Nottingham only)]

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Credit risk is one of the important risks for the banking industry. The main purpose of this thesis is to explore the determinants of the banking credit risks for the UK

commercial banks during the period of 2013-2018. This thesis used the ratio of non-performing loans (NPLs) to represent the probability of defaults. It took both

microeconomic and macroeconomic determinants into consideration. In addition, the panel data approach was applied to examine the relationship between NPLs

and its determinants. According to the final results, the credit risk of UK commercial banks from 2013-2018 has been mainly affected by microeconomic factors, especially the determinants of Loan loss provisions and the bank size

(LNTA). The results also indicate that the macroeconomic determinants seem have no significant correlations with the credit risk. It probably because as the developed country, the economy environment of UK is relatively stable, especially after the 2008 financial subprime crisis, although it has been affected by the ‘Brexit’ after 2016.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Xu, Zeyang
Date Deposited: 07 Dec 2022 09:41
Last Modified: 07 Dec 2022 09:41

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