Table 4

NPLs–summary statistics

Bank sizeVariableNMeanStd. Dev.Median
5 larger groupsNPLs ratio16811.06%8.26%9.59%
Noise adjusted NPL ratio (a)16810.87%7.53%10.14%
Best practice NPL (b)1687.63%7.61%5.79%
Excess of NPLs = Inefficiency (a-b)1683.25%2.62%2.69%
Large banksNPLs ratio1088.94%7.69%6.39%
Noise adjusted NPL ratio (a)1089.44%7.34%7.69%
Best practice NPL (b)1086.65%8.09%5.27%
Excess of NPLs = Inefficiency (a-b)1082.79%2.54%2.02%
Small banksNPLs ratio67212.27%8.66%10.36%
Noise adjusted NPL ratio (a)67212.44%7.72%11.35%
Best practice NPL (b)6728.71%6.34%6.31%
Excess of NPLs = Inefficiency (a-b)6723.73%4.20%2.50%
Mutual banks (BCC)NPLs ratio3,10812.13%7.14%10.44%
Noise adjusted NPL ratio (a)3,10812.09%6.05%11.06%
Best practice NPL (b)3,1088.54%5.24%6.56%
Excess of NPLs = Inefficiency (a-b)3,1083.55%3.04%2.57%
TotalNPLs ratio4,05612.03%7.50%10.33%
Noise adjusted NPL ratio (a)4,05612.03%6.47%11.01%
Best practice NPL (b)4,0568.48%5.65%6.48%
Excess of NPLs = Inefficiency (a-b)4,0563.55%3.24%2.56%

Note(s): Banks' size classification: (1) 5 larger groups are banks belonging to the five larger groups; (2) Large banks with intermediated funds greater than 21.5 billion euros; (3) Small banks with intermediated funds between 3.6 and 21.5 billion euros; mutual banks (BCC) with intermediated funds less than 3.6 billion euros. NPLs split up into (1) the best practice NPLs (i.e. the minimum level of NPLs in the case of complete efficiency); (2) “fortune/misfortune” (i.e. the statistical noise) and (3) the excess NPLs tied to actual inefficiency in the management of the credit process

or Create an Account

Close Modal
Close Modal