Browsing by Author "Undji, Valdemar J"
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Item Determinants of non-performing loans in Namibia’s banking sector using composite indices(Adonis and Abbey Publishers Ltd, 2025) Undji, Valdemar J; Sheefeni, Johannes P.S.This study investigates the determinants of non-performing loans (NPL) in Namibia’s banking sector using six composite indices (macroeconomic, bank-specific, monetary, interest rate, financial and institutional) spanning from 1996Q1 to 2021Q4. The Autoregressive Distributive Lag (ARDL) and pairwise Granger causality modelling approaches are respectively employed and the result shows that over the long-run, both the macroeconomic and interest rate index influence NPL. In the short-run, however, the study reveals that previous levels of NPL, macroeconomic, interest rate and institutional indices affect NPL altogether. In terms of causality, a long-run causal relationship is found between all the variables employed in the model. In the short-run, a unidirectional causal relationship running from the macroeconomic index to NPL and from NPL to the interest rate index as well as from NPL to the institutional index is registered. The study underscores some policy implications that are worth considering.