670 World Review of Entrepreneurship, Management and Sust. Development, Vol. 17, No. 5, 2021
Copyright © 2021 Inderscience Enterprises Ltd.
Linear and asymmetric analyses of macro-economic
and bank-specific determinants of non-performing
loans in West African Monetary Zone (WAMZ)
Ebere Ume Kalu*
Department of Banking and Finance,
University of Nigeria,
Nsukka, Enugu, Nigeria
Email: eukalu@yahoo.com
*Corresponding author
Augustine C. Arize
Economics and Finance Department,
College of Business Texas A&M University-Commerce,
Commerce, Texas, USA
Email: chuck.arize@tamuc.edu
John Malindretos
Cotsakos College of Business,
William Paterson University,
Wayne, New Jersey, USA
Email: jmalindretos@yahoo.com
Kalu Idika Awa
Department of Financial Studies,
National Open University of Nigeria,
Abuja, Nigeria
Email: kawa@noun.edu.ng
Chiamaka Goodness Eze
Department of Banking and Finance,
University of Nigeria,
Nsukka, Enugu, Nigeria
Email: chiamakaeze75@gmail.com
Abstract: We used Panel ARDL and Panel NARDL to investigate the macro-
economic and bank-specific determinants of Non-Performing Loan (NPL) in
the West African Monetary Zone (WAMZ) for the period 2003 to 2018. We
found that both bank-specific and macro-economic determinants jointly
influence NPLs in varying degrees. There is also empirical evidence that NPL
adjusts more non-linearly/asymmetrically to the dynamics of the bank-specific