Influence of the Macroeconomic Factors on the Default rate in the Large Private Banks in Ecuador, Period 2015-2019
DOI:
https://doi.org/10.18779/csye.v5i1.424Keywords:
Default risk, macroeconomic factors, unemployment rate, interest rate, gross domestic productAbstract
We examined the macroeconomic factors that influence on the default rate of the large private banks of the Financial System of Ecuador during the period of 2015-2019. In our multivariate regression models, we use the default rate as dependent variable and the real Gross Domestic Product (GDP), unemployment rate, inflation rate, active interest rate, and passive interest rate, as independent variables. Our results reveal a positive and significant relationship between unemployment, inflation, passive interest rate, and the default rate, while there is a negative and significant relationship between the real GDP and the default rate.
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