Islam, Mohammad Shofiqul and Shil, Nikhil Chandra and Mannan, Md. Abdul (2005): Non performing loans - its causes, consequences and some learning. Published in: Stamford Journal of Business Studies , Vol. Volume, No. Issue 2 (31. December 2005): pp. 100-116.
Download (155kB) | Preview
Investment in productive sector is the precondition for achieving the economic growth from a country perspective. Capital formation positively supports this investment function. Once a satisfactory level of capital is formed, the option of sound investment comes that ultimately leads to flow additional capital in future. The financial institutions, mainly banks, do these functions. In countries like ours, investment leakage in the form of non-functionalities poses a great threat on the sound running of this ‘capital formation – investment – capital formation’ process. This paper deals with non performing loan situations, basically the causes and consequences of this economic devil that is very much embedded in current economic structure. The possible steps are also pointed out to handle such situation.
|Item Type:||MPRA Paper|
|Original Title:||Non performing loans - its causes, consequences and some learning|
|Keywords:||capital formation, workout, LRA, recovery agency|
|Subjects:||H - Public Economics > H8 - Miscellaneous Issues > H81 - Governmental Loans ; Loan Guarantees ; Credits ; Grants ; Bailouts|
|Depositing User:||Nikhil Chandra Shil|
|Date Deposited:||12. Mar 2008 16:15|
|Last Modified:||11. Feb 2013 20:18|
1. Chowdhury, L. R. (2002), A Textbook on Banker’s Advances, Fair Corporation.
2. Henry Petroski, To Engineer is Human: The role of Failure in Successful Design. New York: St. Martin’s Press, 1982.
3. Dale W. Adams and J. D. Von Pischke, “Micro enterprise Credit Programs: Déjà vu,” World Development, 20, 10, 1992.
4. David Bornstein, The Price of a Dream: The Story of Grameen Bank and The Idea That Is Helping the Poor To Change Their Lives. New York: Simon & Schuster, 1996.
5. William M. Gudger and Luis Avalos, “Planning for the effective operation of crop credit insurance schemes”, in Peter Hazell, Carlos Pomareda and Alberto Valdes, eds., Crop Insurance for Agricultural Development: Issues and Experience. Baltimore and London: The Johns Hopkins University Press, 1986.
6. Akyuz, Y. and C. Gore (1996), ‘The investment profits nexus in East Asian Industrialization.’ World Development, vol. 24, No. 3, pp. 461-70.
7. Singh, A. (1995), How did East Asia grow so fast? Slow progress towards an analytical concensus’, UNCTAD Discussion Paper, No. 97 (February,1995)
8. Japelli, T. and M. Pagano (1994), “Savings, growth, and liquidity constraints”, Quarterly Journal of Economics, Vol. 109, No. 1, pp. 83-109.
9. Gupta (1985), Financial intermediation, interest rates and the structure of savings: evidence from ‘Asia’, Journal of Economic Development, Vol. 9, pp. 7-24.
10. Frank H. Robert, Ben S. Bernanke (2001), Principles of Economics, McGraw Hill – Irwin.
11. Samuelson, Paul A. and William, D. Nordhaus (2001), Economics, McGraw Hill – Irwin, Seventeenth Edition.
12. Francis, Jack Clark (1991), Investments: Analysis and Management, McGraw Hill Inc., 5th Edition.
13. Jones Charles P. (2002), Investments: Analysis and Management, John Wiley and Sons Inc., Eight Edition.