UCL School of Slavonic and East European Studies (SSEES)


Reducing Non-Performing Loans: Stylised Facts and Economic Impact

17 October 2018, 12:15 pm–1:30 pm

Maria Balgova

Part of the SSEES Economics and Business Seminar Series

This event is free.

Event Information

Open to





Economics and Business Seminar Series


16 Taviton Street

Using newly collected data on non-performing loan (NPL) in more than 190 countries over 27 years as well as policies aimed at dealing with NPLs, this paper presents stylized facts about episodes of high NPLs and NPL reduction episodes. A combination of asset management companies and public funds made available for recapitalisation is shown to be more effective in terms of resolving NPLs. A typical policy-assisted NPL reduction episode starts with a sharp drop in the stock of NPLs while in later years a greater contribution to the decline in NPL ratio comes from revived credit growth. This profile enables us to focus on specific events – sharp drops in NPL ratios – and their aftermaths, using cases of persistently high NPLs as a control group. Using matching analysis, we estimate that reductions in NPLs are associated with extra growth in excess of 1.5 percentage points per annum over several years.

This is event is free and open to all, no need to register.

Note, this event has replaced an earlier scheduled event 'Special Economic Zones and their economic impact in surrounding areas', which had to be cancelled.

About the Speaker

Maria Balgova

at University of Oxford, Corpus Christi College