The Quality of Bank Loans within the Framework of Globalization

This paper outlines the concept of “quality of bank loans,” and defines the “non-performing loan”, considered as direct expression of non-quality, but also as measure, from a reverse perspective, of the qualitative level of the entire loan portfolio of banks. Also, there are highlighted interdependencies, amplified in the context of globalization, respectively determinants of the variations of non-performing loans (NPLs). In particular, are analyzed correlations of NPLs with impact factors of macro level that determine their formation, but also the NPLs feedback, especially on the economy. The analysis is developed by elaborating econometric models and testing them on the available data for Romania and for EU, the results confirming the validity of these models.