Macroeconomic Factors of Non-performing Loans under Currency Board Regime: A Case of Bosnia and Herzegovina

Data sample contains the data on NPL ratio and macroeconomic variables for Bosnia and Herzegovina over the period between Q1:2005 and Q4:2019. The data is used to examine the effect of macroeconomic factors such as GDP, unemployment and inflation on the level of non-performing loans (NPLs) in banking sector of Bosnia and Herzegovina. The research is conducted using autoregressive distributed lag model. The research results show that real GDP negatively affects the level of NPLs, while rising unemployment and consumer prices increase the level of NPLs.