MACROECONOMIC FACTORS INFLUENCING NON PERFORMING LOANS IN AFGHAN BANKS
Keywords:
non-performing loans, macroeconomic factors, credit risk, Afghan banks, inflation, economic growth, financial stability.Abstract
Non-performing loans (NPLs) are an important indicator of credit risk and banking-sector stability. This study examines the potential influence of macroeconomic factors on non-performing loans in Afghan banks, focusing on economic growth, inflation, unemployment, and exchange rate movements. The study uses a qualitative analytical approach based on academic literature and reports from international institutions. It discusses how economic instability can affect borrowers’ repayment capacity and the quality of banks’ loan portfolios. The World ank has identified rising non-performing loans, regulatory uncertainty, and constrained lending activity as continuing challenges for Afghanistan’s banking sector.
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References
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