The Joint Effects of Oil Price Volatility and Environmental Risks on Non-performing Loans: Evidence from Panel Data of Organization of the Petroleum Exporting Countries
This paper analyses the joint effects of oil price volatility and environmental risks on non-performing loans (NPLs).Using panel data of 12 Organization of the Petroleum Exporting Countries (OPEC) for 2000-2014, we test hypotheses of joint effects of oil price changes and environmental risks on NPLs...
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| Format: | Article |
| Language: | English |
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EconJournals
2016
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| Online Access: | https://repo.uum.edu.my/id/eprint/23962/1/IJEEP%206%203%202016%20522%20528.pdf |
| _version_ | 1803628635567947776 |
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| author | Idris, Ismail Tijjani Nayan, Sabri |
| author_facet | Idris, Ismail Tijjani Nayan, Sabri |
| author_sort | Idris, Ismail Tijjani |
| collection | UUM |
| description | This paper analyses the joint effects of oil price volatility and environmental risks on non-performing loans (NPLs).Using panel data of 12 Organization of the Petroleum Exporting Countries (OPEC) for 2000-2014, we test hypotheses of joint effects of oil price changes and environmental risks on NPLs.Estimates from static panel model highlights the explanatory power of systemic risks theory in linking the effects of oil price volatility and environmental risks on NPLs and underpins their importance for policy implication purposes in OPEC member states.This calls for concerted policy and management response for assessing oil price sensitive and disaster riskiness of borrowing entities.This paper is of particular value to oil dependent countries such as OPEC member states that are net oil exporting countries.From the policy perspectives, there is need for banking regulators to consistently ensure the conduct of both micro-stress and macro-stress tests of loans against the systemic risks of oil price volatility.In addition, policymakers in the banking system should redesign their prudential guidelines to take care of the credit risks vulnerabilities associated with environmental risks and spread their risks across industries and geographical areas that are less prone to disasters. |
| first_indexed | 2024-07-04T06:25:06Z |
| format | Article |
| id | uum-23962 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:25:06Z |
| publishDate | 2016 |
| publisher | EconJournals |
| record_format | dspace |
| spelling | uum-239622018-04-15T04:27:52Z https://repo.uum.edu.my/id/eprint/23962/ The Joint Effects of Oil Price Volatility and Environmental Risks on Non-performing Loans: Evidence from Panel Data of Organization of the Petroleum Exporting Countries Idris, Ismail Tijjani Nayan, Sabri HC Economic History and Conditions This paper analyses the joint effects of oil price volatility and environmental risks on non-performing loans (NPLs).Using panel data of 12 Organization of the Petroleum Exporting Countries (OPEC) for 2000-2014, we test hypotheses of joint effects of oil price changes and environmental risks on NPLs.Estimates from static panel model highlights the explanatory power of systemic risks theory in linking the effects of oil price volatility and environmental risks on NPLs and underpins their importance for policy implication purposes in OPEC member states.This calls for concerted policy and management response for assessing oil price sensitive and disaster riskiness of borrowing entities.This paper is of particular value to oil dependent countries such as OPEC member states that are net oil exporting countries.From the policy perspectives, there is need for banking regulators to consistently ensure the conduct of both micro-stress and macro-stress tests of loans against the systemic risks of oil price volatility.In addition, policymakers in the banking system should redesign their prudential guidelines to take care of the credit risks vulnerabilities associated with environmental risks and spread their risks across industries and geographical areas that are less prone to disasters. EconJournals 2016 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/23962/1/IJEEP%206%203%202016%20522%20528.pdf Idris, Ismail Tijjani and Nayan, Sabri (2016) The Joint Effects of Oil Price Volatility and Environmental Risks on Non-performing Loans: Evidence from Panel Data of Organization of the Petroleum Exporting Countries. International Journal of Energy Economics and Policy, 2016, 6(3), 522-528., 6 (3). pp. 522-528. ISSN 2146-4553 http://www.econjournals.com/index.php/ijeep/article/view/2524 |
| spellingShingle | HC Economic History and Conditions Idris, Ismail Tijjani Nayan, Sabri The Joint Effects of Oil Price Volatility and Environmental Risks on Non-performing Loans: Evidence from Panel Data of Organization of the Petroleum Exporting Countries |
| title | The Joint Effects of Oil Price Volatility and Environmental Risks on Non-performing Loans: Evidence from Panel Data of Organization of the Petroleum Exporting Countries |
| title_full | The Joint Effects of Oil Price Volatility and Environmental Risks on Non-performing Loans: Evidence from Panel Data of Organization of the Petroleum Exporting Countries |
| title_fullStr | The Joint Effects of Oil Price Volatility and Environmental Risks on Non-performing Loans: Evidence from Panel Data of Organization of the Petroleum Exporting Countries |
| title_full_unstemmed | The Joint Effects of Oil Price Volatility and Environmental Risks on Non-performing Loans: Evidence from Panel Data of Organization of the Petroleum Exporting Countries |
| title_short | The Joint Effects of Oil Price Volatility and Environmental Risks on Non-performing Loans: Evidence from Panel Data of Organization of the Petroleum Exporting Countries |
| title_sort | joint effects of oil price volatility and environmental risks on non performing loans evidence from panel data of organization of the petroleum exporting countries |
| topic | HC Economic History and Conditions |
| url | https://repo.uum.edu.my/id/eprint/23962/1/IJEEP%206%203%202016%20522%20528.pdf |
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