This paper analyses the transmission channel from non-performing loans to the cost of capital, credit provision and liquidity creation in the banks of the Eurozone. The empirical results suggest that holdings of non-performing loans increase both the long- and short-term cost of capital for banks. Moreover, the less capitalized the bank, the greater the reduction in credit provision and liquidity creation due to the increased cost of capital. This phenomenon is found to be more economically significant for European periphery country banks than for core country banks. The identification of the transmission channel is robust to the Granger predictability test.

中文翻译：

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不良贷款对欧元区银行资本成本和贷款供应的动态影响

本文分析了欧元区银行从不良贷款到资本成本，信贷提供和流动性创造的传导渠道。实证结果表明，不良贷款的持有会增加银行的长期和短期资本成本。此外，银行的资本越少，由于资本成本的增加，信贷准备金和流动性创造的减少就越大。对于欧洲外围国家的银行，发现这种现象在经济上比核心国家的银行更为重要。传输通道的识别对于Granger可预测性测试是可靠的。