The reasons of non-performing loans and perspectives of economic growth

Abstract

Sudden growth of NPL volume became one of the up-to-date problems of bank sector in late 2000s. Analysis of macroeconomic values of development of Eastern, Central and South Europe, CIS-countries showed that before financial crisis of 2007-2008 the situation with credit portfolios in most countries of the world were rather stable. However world financial crisis changed situation seriously in financial sector - the average quality of bank assets has deteriorated greatly and a number of general problems of development became clear. This article is devoted to analysis of main reasons of NPL growth in modern economy and the evaluation of effects of their influence on national economies. The article analyses the reasons of origination of bad assets (NPL) and considers them in terms of opportunities of national economies. Comparative characteristics of the factors and reasons for nonelimination and growth of bad assets in Russia, CIS-countries, European countries are provided.