Keywords
How to Cite
Abstract
Economic instability can create significant challenges for the banking sector, particularly in countries experiencing financial and institutional difficulties. This study explores the role of economic instability in bank credit risk in Afghanistan, focusing on inflation, unemployment, exchange rate fluctuations, and economic growth. It adopts a qualitative analytical approach based on academic literature and reports from international institutions. The study discusses how changes in macroeconomic conditions can affect borrowers’ repayment capacity, loan portfolio quality, and banks’ financial stability.
References
1. Klein, N. (2013). Non-performing loans in CESEE: Determinants and impact on macroeconomic performance. IMF Working Paper No. 13/72.
International Monetary Fund. https://doi.org/10.5089/9781484318522.001
2. Louzis, D. P., Vouldis, A. T., & Metaxas, V. L. (2012). Macroeconomic and bank-specific determinants of non-performing loans in Greece: A comparative study of mortgage, business and consumer loan portfolios. Journal of & Finance, https://doi.org/10.1016/j.jbankfin.2011.10.012
