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Scholars Journal of Economics, Business and Management | Volume-3 | Issue-10
Non-Performing Loans and Economic Growth
Muhammad Ishfaq Ahmad, Wang Guohui, Mudassar Hasan, Rizwan Ali, Muhammad Yasir Rafiq, Ramiz ur Rehman
Published: Oct. 29, 2016 | 124 71
DOI: 10.36347/sjebm.2016.v03i10.009
Pages: 584-586
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Abstract
Non-Performing loans are the big challenge for the Banking sector. This study examined this serious issue by developing the relationship between the Non-Performing Loans and the Economic Growth. For this, the data of Economic indicators (GDP Growth, Interest Rates and Inflation) and Non- performing Loans are taken for the time span of 1998-2010 on annually basis. By applying the regression we concluded there is Negative relationship between the GDP and Non-Performing loans but there is positive relationship between the interest rate and Non-performing Loans. Finally Non-performing loans hurts the Economic growth.