Are non-performing loans sensitive to macroeconomic determinants? an empirical evidence from banking sector of SAARC countries

Future Business Journal

Table 3 Matrix of correlations

Variables	L_NPLs	L_M2GDP	L_EXC	GDP	FISCAL	INFL	L_DEBT
L_NPLs	1.000
L_M2GDP	−0.259	1.000
L_EXC	−0.275	0.242	1.000
GDP	−0.355	−0.013	−0.112	1.000
FISCAL	−0.187	0.051	0.217	0.204	1.000
INFL	−0.092	0.043	0.088	−0.242	−0.061	1.000
L_DEBT	0.072	0.446	0.042	−0.034	−0.440	0.073	1.000

Note Natural logarithm of Non-performing Loans (L_NPLs), Natural logarithm of Broad Money Supply as % of GDP (L_M2GDP), Natural logarithm of Average Exchange Rate (L_EXC), GDP Growth Rate annual percentage (GDP), Government Budget Surplus/Deficit (FISCAL), Inflation Rate (INFL), Natural logarithm of Sovereign Debt (L_DEBT)
Source: Author’s calculation