The asymmetric effect of oil price fluctuation on non-performing loans in Kazakhstan: evidence from the ricardian curse of the resource boom

This paper investigates the asymmetric impact of oil price fluctuations on non-performing loans (NPLs) between 2009-Q1 and 2020-Q1 for 28 banks in Kazakhstan. Dynamic panel threshold analysis revealed an initial increase of oil prices, improving creditworthiness, thereby reducing NPLs; however, afte...

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Main Authors: Chin, Lee, Saydaliev, Hayot Berk, Kadyrov, Shirali
Format: Article
Published: Taylor and Francis 2022
Online Access:http://psasir.upm.edu.my/id/eprint/103472/
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author Chin, Lee
Saydaliev, Hayot Berk
Kadyrov, Shirali
author_facet Chin, Lee
Saydaliev, Hayot Berk
Kadyrov, Shirali
author_sort Chin, Lee
building UPM Institutional Repository
collection Online Access
description This paper investigates the asymmetric impact of oil price fluctuations on non-performing loans (NPLs) between 2009-Q1 and 2020-Q1 for 28 banks in Kazakhstan. Dynamic panel threshold analysis revealed an initial increase of oil prices, improving creditworthiness, thereby reducing NPLs; however, after cross a certain threshold, the relationship was shown to become the opposite. This finding is in line with the Ricardian curse and resource windfall. The results suggest that optimal borrowings and lending should be actively monitored to mitigate potential liquidity problems of banks and consequently NPLs. The practical implications and policy recommendation of which are important to policy makers.
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institution Universiti Putra Malaysia
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last_indexed 2025-11-15T13:42:17Z
publishDate 2022
publisher Taylor and Francis
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spelling upm-1034722023-05-26T07:59:52Z http://psasir.upm.edu.my/id/eprint/103472/ The asymmetric effect of oil price fluctuation on non-performing loans in Kazakhstan: evidence from the ricardian curse of the resource boom Chin, Lee Saydaliev, Hayot Berk Kadyrov, Shirali This paper investigates the asymmetric impact of oil price fluctuations on non-performing loans (NPLs) between 2009-Q1 and 2020-Q1 for 28 banks in Kazakhstan. Dynamic panel threshold analysis revealed an initial increase of oil prices, improving creditworthiness, thereby reducing NPLs; however, after cross a certain threshold, the relationship was shown to become the opposite. This finding is in line with the Ricardian curse and resource windfall. The results suggest that optimal borrowings and lending should be actively monitored to mitigate potential liquidity problems of banks and consequently NPLs. The practical implications and policy recommendation of which are important to policy makers. Taylor and Francis 2022 Article PeerReviewed Chin, Lee and Saydaliev, Hayot Berk and Kadyrov, Shirali (2022) The asymmetric effect of oil price fluctuation on non-performing loans in Kazakhstan: evidence from the ricardian curse of the resource boom. Journal of East-West Business, 29 (2). pp. 114-137. ISSN 1066-9868; ESSN:1528-6959 https://www.tandfonline.com/doi/abs/10.1080/10669868.2022.2141940 10.1080/10669868.2022.2141940
spellingShingle Chin, Lee
Saydaliev, Hayot Berk
Kadyrov, Shirali
The asymmetric effect of oil price fluctuation on non-performing loans in Kazakhstan: evidence from the ricardian curse of the resource boom
title The asymmetric effect of oil price fluctuation on non-performing loans in Kazakhstan: evidence from the ricardian curse of the resource boom
title_full The asymmetric effect of oil price fluctuation on non-performing loans in Kazakhstan: evidence from the ricardian curse of the resource boom
title_fullStr The asymmetric effect of oil price fluctuation on non-performing loans in Kazakhstan: evidence from the ricardian curse of the resource boom
title_full_unstemmed The asymmetric effect of oil price fluctuation on non-performing loans in Kazakhstan: evidence from the ricardian curse of the resource boom
title_short The asymmetric effect of oil price fluctuation on non-performing loans in Kazakhstan: evidence from the ricardian curse of the resource boom
title_sort asymmetric effect of oil price fluctuation on non-performing loans in kazakhstan: evidence from the ricardian curse of the resource boom
url http://psasir.upm.edu.my/id/eprint/103472/
http://psasir.upm.edu.my/id/eprint/103472/
http://psasir.upm.edu.my/id/eprint/103472/