Econometric analysis of non-performing loans

NPLs have been for a very long time in the central attention of governments and national banks. Is there a main trigger of bad loans? Or every country has a different struggle and a different solution to NPLs? Can we find the cause and limit the effect of bad loans? To each of these questions we found the answer by using a novel panel data set estimated for the period 2000-2013 across 44 European countries. From Bulgaria to UK we discovered where polices fail and what the main institutions should look for in order to stop a possible bank failure created by NPLs.