Does Worsening of Technology Drive Non-Performing Loans?

Abstract

In this paper, I study the empirical determinants of non-performing loan (NPL) ratios using a data set for EU countries covering the previous decade. The paper assumes that the spatial organization of banking systems and the geographical distribution of commercial banks' branches, ATMs (automatic teller machine) are major factors influencing the effectiveness in credit system. To my best knowledge this paper is the first is to construct a hypothesis, which will demonstrate the role of technology in NPLs.