Credit risk has severe impacts on banks’ performance, leading to financial and economic distress. To highlight this interesting issue, this study explores bank-specific and macroeconomic determinants of banks’ credit risk, denoted by the level of nonperforming loans (NPLs). The study includes 98 banks from 10 Middle East and North African (MENA) emerging countries spanning the period between 2003 and 2016. The analysis employs panel data estimation technique. Our results reveal that bank size, capital adequacy ratio, bank operating efficiency, profitability, GDP growth, unemployment, inflation, and public debt represent the main determinants of NPLs in MENA emerging markets. The results of this research have practical implications for bank managers, regulators, investors, and financial analysts. This study provides significant insights on the determinants of NPLs, which will allow bank managers to design credit policies that minimize borrowers’ defaults. The findings of the study are useful to policy makers to establish new and reinforce existing regulations to maintain the steadiness of the banking sector in MENA emerging countries.

中文翻译：

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新兴市场不良贷款的决定因素：来自中东和北非地区的证据

信用风险对银行的业绩产生严重影响，导致金融和经济困境。为了突出这个有趣的问题，本研究探讨了银行信用风险的特定银行和宏观经济决定因素，以不良贷款 (NPL) 水平表示。该研究包括 2003 年至 2016 年期间来自 10 个中东和北非 (MENA) 新兴国家的 98 家银行。分析采用面板数据估计技术。我们的研究结果表明，银行规模、资本充足率、银行运营效率、盈利能力、GDP 增长、失业率、通货膨胀和公共债务是中东和北非新兴市场不良贷款的主要决定因素。这项研究的结果对银行经理、监管机构、投资者和金融分析师具有实际意义。本研究提供了有关不良贷款决定因素的重要见解，这将使银行经理能够设计信贷政策，以最大限度地减少借款人的违约。该研究的结果有助于政策制定者制定新的法规并加强现有法规，以维持中东和北非新兴国家银行业的稳定。