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1
Waqas, Muhammad, Nudrat Fatima, Aryan Khan, and Muhammad Arif. "Determinants of Non-performing Loans." International Journal of Finance & Banking Studies (2147-4486) 6, no. 1 (July 21, 2019): 51–68. http://dx.doi.org/10.20525/ijfbs.v6i1.617.
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The aim of the empirical study is to investigate credit risk determinants in banking sectors across three kinds of South Asian economies. An accumulated sample of 105 unbalanced panel data of financial firms over the period of 2000-2015, by applying General Method of Moment (GMM) estimation techniques one-step at the difference in order to identify factors influencing credit risk. This study is inspired by two broad categories of explanatory variables which are bank-specific and macroeconomic. Bank-specific factors influencing unsystematic risk, while macroeconomic factors promoting systematic risk. The study uses a proxy of non-performing loans for credit risk in banking sectors of Pakistan, India, and Bangladesh. The empirical results have been found aligned with theoretical arguments and literature as expected. In comparison, NPLs in Pakistan is greater than India and Bangladesh, while India has the lowest ratio of non-performing loans. The study documents that bank-specific factors (inefficiency, profitability, capital ratio and leverage) have a significant contribution towards credit risk. Further, the study also finds a significant impact of macroeconomic variables on non-performing loans. While, the result in the case of Bangladesh predicts contradictions that have no significant effect on non-performing loans at various levels. The overall results indicate that credit risk is not influenced by only external factors but also affect by internal factors like bad management and skimping etc.
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Qin, Song, and Zhenlei Wang. "Comparison of International Differences in the Volatility of Economic Growth and Non-Performing Loan Ratio: A Statistical Study Based on the Quantile Regression Model." Journal of Advanced Computational Intelligence and Intelligent Informatics 21, no. 6 (October 20, 2017): 1094–101. http://dx.doi.org/10.20965/jaciii.2017.p1094.
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What is the level of non-performing loans in China’s banking sector and in different countries? Has the relationship between economic growth and the non-performing loan ratio changed? Is there a difference in the effect of the economic growth of different economies on the rate of non-performing loans in the banking sector? This study analyzes the relationship between economic growth and the non-performing loan ratios and characteristics of 13 countries from 2005-2014 based on quantile regression models with panel data. The results showed that the relationship between economic growth and the non-performing loan ratio was positive before the financial crisis in 2008 but was negative after 2008. The non-performing loan ratio in Canada, Mexico, and the US was low before 2008 and high after 2008. The impact of economic growth on the non-performing loan ratio was more significant for countries with a high non-performing loan ratio than for countries with a low non-performing loan ratio.
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Alawiyah, Miryam, Dedy Wijaya Kusuma, and Fetri Setyo Liyundira. "IMPRESSION OF NON-PERFORMING LOAN, LOAN TO DEPOSIT RATIO, AND NET INTEREST MARGIN AGAINST PROFITABILITY." Assets : Jurnal Ilmiah Ilmu Akuntansi, Keuangan dan Pajak 4, no. 1 (January 31, 2020): 27–31. http://dx.doi.org/10.30741/assets.v4i1.562.
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This study aims to determine the effect of Net Performing Loans, Loan to Deposit Ratio, and Net Interest Margin on profitability. Profitability is proxied by Return On Assets (ROA). Whereas the factor for the existence of Net Performing Loans (NPL) is proxied by non-performing loans, the Loan to Deposit Ratio (LDR) factor is proxied by third-party fund distribution, and the Net Interest Margin (NIM) factor is net interest income proxied. The population in this study amounted to 25 Rural Banks (BPR) in the Jember Regency, and for the study, the sample was 19 People's Credit Banks (BPR) in the Jember Regency, which were selected using the purposive sampling method for the 2017-2018 period. Data were analyzed using multiple linear regression. Based on the test results, it was concluded that the components of the Net Performing Loan (NPL), Loan to Deposit Ratio (LDR), and Net Interest Margin (NIM) affect the profitability using the Return on Assets (ROA) ratio. This proves that Non-Performing Loans (NPLs), Loans to Deposit Ratio (LDR), and Net Interest Margin (NIM) can be used to measure how much income the Bank earns.
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Rahman, Md Ataur, Md Asaduzzaman, and Md Shakhaowat Hossin. "Impact of Financial Ratios on Non-Performing Loans of Publicly Traded Commercial Banks in Bangladesh." International Journal of Financial Research 8, no. 1 (December 8, 2016): 181. http://dx.doi.org/10.5430/ijfr.v8n1p181.
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This study investigates the influences of a set of financial ratios on non-performing loans and to show to what extent of listed commercial banks in Bangladesh. In this study, we applied an econometric model to find out correlations among financial ratios and a sample of 96 observations has been analyzed from 20 banks out of 30 listed commercial banks during 2010-2015. This paper mostly agrees with the existing literature that, credit-deposit ratio, net interest margin have a positive influence on the non-performing loans and capital adequacy ratio, return on assets have a negative influence on the non-performing loans. This research also reveals that, sensitive sector’s loan, priority sector’s loan have significant positive influence on the non-performing loans and unsecured loans, profit per employee, investment deposit ratio have significant negative impact on gross non-performing loan. The findings of this research would help commercial banks to maintain standard financial ratios in order to improve their loan qualities and it would be beneficial to the central bank to examine its existing policy in banking supervision relating to the ratios of regulatory requirements like capital adequacy ratio the banks shall maintain.
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Wanjala, Kevin, and Jane Njeri Gachanja. "Mr Bank Specific Determinants of Nonperforming Loans in Kenya." Business Perspective Review 2, no. 1 (June 18, 2020): 29–44. http://dx.doi.org/10.38157/business-perspective-review.v2i1.118.
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Purpose: This paper aims to explore the bank-specific determinants of Nonperforming Loans in Kenya. To achieve this objective, the study considers four bank-specific variables that are expected to affect the magnitude of non-performing loans. These variables are bank size as measured by banks' total assets, loan-to-deposit ratio, capital adequacy ratio, and interest rates.
Methodology: The study used a causal research design. Aggregated data on all 43 Kenyan banks were collected from secondary sources. Time series regression was applied to the data.
Results: The study finds that there is a positive relationship between bank size and non-performing loans. It also observes that there is a negative relationship between loans-to-deposit ratio and non-performing loans. The study further observes that there is a negative correlation between capital adequacy ratio and non-performing loans in Kenya. Finally, the study establishes that there is a positive relationship between the interest rate and non-performing loans in Kenya.
Implications: The study recommends that banks should revise their interest rates downwards to enable borrowers to afford the loans and avert the cases of default. Banks should also invest in proper infrastructure for screening borrowers to avoid cases of loan default.
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Rosita, Maya, and Musdholifah Musdholifah. "Pengaruh Makroekonomi, Capital Adequacy Ratio, Loan To Deposit Ratio dan Pertumbuhan Kredit terhadap Non Performing Loan pada Bank Asing di Indonesia Periode 2013-2014." BISMA (Bisnis dan Manajemen) 8, no. 2 (February 27, 2018): 124. http://dx.doi.org/10.26740/bisma.v8n2.p124-143.
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The aim of this study was to understand the influence of macroeconomic factors in this research are exchange rate and inflation, while for the internal bank are capital adequacy ratio (CAR), loan to deposit ratio (LDR) and credit growth towards non performing loan (NPL). The data that used is quarterly data from financial statements of Foreign Bank in Indonesia period of 2013 until 2014. Data analysis method used is multiple-regression analysis. The results showed that there was a simultaneous influence of independent variables towards NPL of Foreign Bank in Indonesia. However, partially showed that CAR has a negative influence, the higher capital adequacy ratio, it can serve to accommodate the risk of losses faced by banks due to the increase in non performing loans. LDR has a positif influence, LDR shows expansion of bank loans made to measure current or whether bank intermediary function. LDR which leads to high risk of uncollectible loans to be high which will result in a non performing loans.
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KHAN, FAZLI RAHMAN, MUHAMMAD NISAR KHAN, and SAIMA UROOGE. "Non-Performing Loan and Financial Stability of Banking Industry in Pakistan." International Review of Management and Business Research 9, no. 4 (December 7, 2020): 347–56. http://dx.doi.org/10.30543/9-4(2020)-29.
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The objectives of this study to assess the state of financial stability of commercial banks in Pakistan and then estimate how good, bad and worst economic conditions would influence the stability. Our design of the study is a mix of techniques. Pakistan have not experienced financial crisis due to some shocks, therefore stress events and its effects not included in design. This study examines the effect of non-performing loans on financial stability empirically. Based on the above premise, this thesis investigates the association of financial stability with non-performing loans for all commercial banks of Pakistan for the period of 2014-2018. The study used the 27 commercial banks having 162 bank year observations. The study measured of financial stability (FS) through the financial leverage ratio and liquidity ratio using the common effect model. For the non-performing loans this study uses the non-performing loan ratio. Using secondary data that is panel in nature and applying panel data models for analysis, the study finds out that non-performing loans negatively associated with financial stability of commercial banks in Pakistan. Keywords: Loan, Finance, Banking, Stability, Pakistan.
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KHAN, FAZLI RAHMAN, MUHAMMAD NISAR KHAN, and SAIMA UROOGE. "Non-Performing Loan and Financial Stability of Banking Industry in Pakistan." International Review of Management and Business Research 9, no. 4 (December 7, 2020): 347–56. http://dx.doi.org/10.30543/9-4(2020)-29.
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The objectives of this study to assess the state of financial stability of commercial banks in Pakistan and then estimate how good, bad and worst economic conditions would influence the stability. Our design of the study is a mix of techniques. Pakistan have not experienced financial crisis due to some shocks, therefore stress events and its effects not included in design. This study examines the effect of non-performing loans on financial stability empirically. Based on the above premise, this thesis investigates the association of financial stability with non-performing loans for all commercial banks of Pakistan for the period of 2014-2018. The study used the 27 commercial banks having 162 bank year observations. The study measured of financial stability (FS) through the financial leverage ratio and liquidity ratio using the common effect model. For the non-performing loans this study uses the non-performing loan ratio. Using secondary data that is panel in nature and applying panel data models for analysis, the study finds out that non-performing loans negatively associated with financial stability of commercial banks in Pakistan. Keywords: Loan, Finance, Banking, Stability, Pakistan.
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Ben Salem, Salha, Moez Labidi, and Nadia Mansour. "Empirical evidence on Non-Performing Loans and credit frictions: banking sector in Tunisia." International Journal of Financial, Accounting, and Management 2, no. 3 (September 15, 2020): 171–83. http://dx.doi.org/10.35912/ijfam.v2i3.191.
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Purpose: This paper explores the most important determinants of friction in the Tunisian credit market. The previous literature argued that friction is largely explained by the increase in Non-Performing Loans Nkusu, 2011; Abadi et al. 2014; Rulyasri et al.2017, Roland et all, 2013. Research methodology: We constructed a multivariate Vector Error Correction Model, with five macroeconomic variables (industrial production index, the money supply, money market interest rate) to examine the impact of Non-Performing Loans increase in amplifying the Tunisian credit frictions. Results: The Vector Error Correction Model (VECM) regression results show a negative and important relationship between economic growth and Non-Performing Loans (NPL) ratio, which is very robust during the political crisis of 2011. The money market interest rate and the money supply are positively related to the Non-Performing loan ratio. Limitation: This study was only focused on Tunisian banking sector as one of the pillars of the Tunisian economy. Contributions: This highlights that the nature of the monetary policy adopted by the monetary authority of Tunisia plays a significant role in the fluctuation of the Non-Performing Loans ratio. Bank capitalization is positively and statistically significant with Non-Performing Loan ratio, implying that banks with a low level of capital are more likely to have a riskier credit portfolio that causes the increase of Non-Performing Loans in their balance sheet.
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Bayu Indrawan, Ida Bagus Made, and I. Wayan Pradnyanta Wirasedana. "Indikator Risk Based Bank Rating, Kinerja Keuangan dan Perusahaan Perbankan." E-Jurnal Akuntansi 31, no. 3 (March 25, 2021): 782. http://dx.doi.org/10.24843/eja.2021.v31.i03.p20.
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The research aims to prove empirically the influence of Non-Performing Loans, Loans to Deposit Ratio, Good Corporate Governance, Net Interest Margin, and Capital Adequacy Ratio on financial performance of banking companies listed on the IDX. Agency theory and Productive theory of credit are the theories used in this study. The study population is all Banking Companies listed on the Indonesia Stock Exchange (IDX) in 2014-2018 totaling 45 companies. The research sample of 30 companies with non-probability sampling method with purposive sampling technique. The data analysis technique used is multiple linear regression. The research results obtained by Non Performing Loans are considered negative, Loan to Deposit Ratio and Good Corporate Governance are not approved and are significant, Net Interest Margin and Capital Adequacy Ratio have positive and significant effect on financial performance.
Keywords: Non Performing Loan; Loan to Deposit Ratio; Good Corporate Governance; Net Interest Margin; Capital Adequacy Ratio; Financial Performance.
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Kumar Sarker, Sanjoy. "A COMPARATIVE ANALYSIS ON NON-PERFORMING LOANS (NPLs) IN THE BANKING SECTORS OF BANGLADESH." International Journal of Research -GRANTHAALAYAH 7, no. 1 (January 31, 2019): 297–314. http://dx.doi.org/10.29121/granthaalayah.v7.i1.2019.1056.
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The aims of this study is to be analyzed the comparative position of all the fours banking categories on non-performing loans in Bangladesh and also investigate what are the different causes of non-performing loans in banking sectors of Bangladesh. This study will cover based on secondary data, which has been collected from the annual reports of the Bangladesh Bank during the 2006-2017 for 12 years and total NPL, NPL to Total Loans ratio and Trends of net NPL to total loans ratio are taken as variables of the study. The data are analyzed by using descriptive Statistics, ANOVA Test and the Test of Homogeneity of Variances. In this paper it is found that there is significant difference at the performances of four categories of banks on the Non-performing loans and there is no Homogeneity of Variances of total NPL, NPL to Total Loans ratio and Trends of net NPL to total loans ratio among all the banking categories. The SCBs and DFIs have continues maintain the high level of NPL and NPLs ratio to total loans then PCBs and FCBs and the NPLs recovery record during the study period has witnessed some sign or signal for improvement, due to number of step are taken with regard to internal restructuring for strengthen the loan recovery mechanism and initiative taken for written off measurement in recent time for all the banking categories. The suggestions and recommendation have been given for improve the present situation of non-performing loans in the banking sectors in Bangladesh.
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Yulianti, Eka, Aliamin Aliamin, and Ridwan Ibrahim. "The Effect of Capital Adequacy and Bank Size on Non-Performing Loans in Indonesian Public Banks." Journal of Accounting Research, Organization and Economics 1, no. 2 (December 14, 2018): 205–14. http://dx.doi.org/10.24815/jaroe.v1i2.11709.
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AbstractObjective – This study aims to analyze the effect of capital adequacy and bank size on nonperforming loans in public banks in Indonesia for the 2012-2016 period. Design/methodology – The secondary data used is obtained from the Financial Statements published by Bank Indonesia. This research is a hypothesis-testing study. Purposive sampling method was utilized and 81 samples constitute the final samples of this study. Multiple linear regression analysis with panel data estimation was run to test the hypotheses. Results – The results show that simultaneously capital adequacy ratio, bank size, and loan to deposit ratio have an effect on nonperforming loans. Partially, the result shows that capital adequacy ratio has a positive effect on non-performing loans, while bank size negatively affects nonperforming loans, and loan to deposit ratio negatively affects nonperforming loans. Research limitations/implications – This study is perhaps limited in the number of variables used to test the model. There may be other variables influencing NPL in public banks in Indonesia hence future studies may broaden the scope of this study.
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Morakinyo, Akinola Ezekiel, and Mabutho Sibanda. "The Determinants of Non-Performing Loans in the MINT Economies." Journal of Economics and Behavioral Studies 8, no. 5(J) (October 30, 2016): 39–55. http://dx.doi.org/10.22610/jebs.v8i5(j).1430.
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This paper investigates the major determinants of non-performing loans in the MINT (Mexico, Indonesia, Nigeria and Turkey) economies. Identifying major determinants of non-performing loans, which are observed to be growing in these countries in recent time, will also guide policy and forecasting future levels that will be useful for pre-emptive policies and actions. It uses static panel data and dynamic panel model analyses. Evidence suggests that in the four economies, capital adequacy ratio, liquidity ratio, total bank credit andreturn on assets are significant bank-specific determinants of non-performing loans. Also, while the return on assets, liquidity ratio and capital adequacy ratioshow a negative and significant relationship with non-performing loans, nominal exchange rate, money supply growth rate, total bank credit and lending rate show positive and very significant relationships with non-performing loans. Finally, corruption, an institutional variable, shows a very strong positive relationship with non-performing loans.
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Alajmi, Moeidh, and Khalid Alqasem. "Determinants of capital adequacy ratio in Kuwaiti banks." Journal of Governance and Regulation 4, no. 4 (2015): 315–22. http://dx.doi.org/10.22495/jgr_v4_i4_c2_p3.
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The aim of this study is to identify the effects of seven internal factors of five conventional Kuwaiti banks on capital adequacy ratio (CAR). The five factors are: Loans to Assets, Loans to Deposits, Non-Performing Loans to Total Loans, Return on Assets, Return on Equity, Dividend Payout and Total Liability to Total Assets. The study covers the period from 2005 to 2013. The study shows that under fixed effect model, variables DIVIEDEND, LAR, LDR, NPLLR, and ROE do not have any impact on capital adequacy ratio. However, SIZE has a significant and negative relationship with capital adequacy ratio. Also, ROA shows a significant and negative relationship with capital adequacy ratio. Under random effect model, results indicate that CAR is adversely affected by bank’s SIZE (total liability to assets), and ROA has a significant and negative relationship with capital adequacy ratio, However, Loan to Deposit Ratio (LDR) showed a significant and positive relationship with capital adequacy ratio. On the other hand, dividend payout, loans to assets, Non-Performing Loans to Total Loans and Return on equity do not have significant effect on CAR under random effect model.
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Tanasković, Svetozar, and Maja Jandrić. "Macroeconomic and Institutional Determinants of Non-performing Loans." Journal of Central Banking Theory and Practice 4, no. 1 (January 1, 2015): 47–62. http://dx.doi.org/10.1515/jcbtp-2015-0004.
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Abstract This paper aims to analyse macroeconomic and institutional empirical determinants of growth of NPL ratios. Research is focused on selected CEEC and SEE countries in the period 2006- 2013. For our analysis we use static panel model approach with the logarithm of share of NPLs to total loans as a dependent variable. As independent variables we used a combination of country-specific macroeconomic and financial indicators which are commonly used in reference literature, as well as relevant institutional variables. Our results show that there is a negative relationship between increases in GDP and rise of the NPL ratio. Along with GDP, foreign currency loans ratio and level of exchange rate are positively related with the increase of NPL ratio. This confirms the expectation that countries where domestic currency is not the main medium of credit placements will have larger problems with the level of NPLs, which is even more pronounced in periods of domestic currency depreciation. In the presented models, the inflation rate is reported as statistically insignificant for sample countries. In the group of institutional variables, only financial market level of development is reported as statistically significant in relation to the level of NPL - with a more developed financial market the level of NPLs should be lower.
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Fanesha, Fanesha, Nusa Muktiadji, and Ganjar Hendrian. "Pengaruh Loan To Deposit Ratio, Capital Adequacy Ratio, Dan Non Performing Loan Terhadap Profitabilitas Perbankan Yang Terdaftar Di Bursa Efek Indonesia (BEI)." Jurnal Ilmiah Manajemen Kesatuan 9, no. 2 (July 12, 2021): 131–40. http://dx.doi.org/10.37641/jimkes.v9i2.764.
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This study aims to determine how the influence of Loan to Deposit Ratio, Capital Adequacy Ratio and Non Performing Loans on Banking Profitability Listed on the Indonesia Stock Exchange (IDX) that occurs at PT Bank Central Asia Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Mandiri (Persero) Tbk, PT Bank CIMB Niaga Tbk, PT Bank Negara Indonesia (Persero) Tbk, PT Bank Tabungan Negara (Persero) in 2014-2018.
The data used in this study are quantitative data with secondary data sources derived from the financial statements of each bank. This research uses descriptive statistical analysis methods, inference analysis, classic assumption test, multiple linear analysis and coefficient of determination. Regression analysis is used to find out how the influence of independent variables on the dependent variable with a significance value of 5 percent. While the determination coefficient analysis is used to determine the relationship between the independent variable and the dependent variable.
From the partial hypothesis test (T Test) that has been done by the author, it is obtained that the Loan to Deposit Ratio affects Return On Assets, Capital Adequacy Ratio has no effect on Return On Assets and Non Performing Loans has no effect on Return On Assets. For simultaneous hypothesis testing (Test F), the results obtained are that the independent variables namely Loan to Deposit Ratio, Capital Adequacy Ratio and Non Performing Loans simultaneously influence the Return on Assets.
Key words : Loan to Deposit Ratio (LDR), Capital Adequacy Ratio (CAR), Non Performing
Loan (NPL), Return On Asset (ROA).
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Dahlan, Dahlan, Osman Lewangka, and Firman Menne. "PENGARUH NON PERFORMING LOAN, LOAN DEPOSIT TO RATIO, BEBAN OPERASIONAL PENDAPATAN OPERASIONAL DAN BANK SIZE TERHADAP PROFITABILITAS MELALUI CAPITAL ADEQUACY RATIO." Indonesian Journal of Business and Management 2, no. 2 (January 7, 2021): 71–77. http://dx.doi.org/10.35965/jbm.v2i2.458.
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Tujuan dari penelitian ini adalah untuk mengetahui pengaruh langsung dan tidak langsung Non Performing Loan, Loan to Deposit Ratio, Beban Operasional Pendapatan Operasional dan Bank Size terhadap Profitabilitas melalui Capital Adequacy Ratio pada bank yang terdaftar di BEI periode 2014-2018. Sampel yang digunakan dalam penelitia ini adalah Bank BUMN yang terdiri dari empat Bank dan BUSN Devisa yang terdiri dari 10 Bank. Analisis yang digunakan untuk mengetahui hubungan langsung dan tidak langsung Non Performing Loan, Loan to Deposit Ratio, Beban Operasional Pendapatan Operasional dan Bank Size terhadap Profitabilitas Melalui Capital Adequacy Ratio adalah menggunakan Path Analysis. Berdasarkan hasil penelitian secara parsial Non Performing Loan dan Bank Size tidak terdapat pengaruh secara langsung dan tidak langsung terhadap Profitabilitas. Sedangkan Loan to Deposit Ratio dan Beban Operasional Pendapatan Operasional terdapat pengaruh langsung dan tidak langsung terhadap profitabilitas. Secara simultan dapat dilihat bahwa hasil uji simultan untuk Model 1 diperoleh nilai Fhitung sebesar 229.734 dengan p-value sebesar 0.000 (< 0.05), dan untuk Model 2del 2 diperoleh nilai Fhitung sebesar 11.655 dengan p-value sebesar 0.000 (< 0.05) The purpose of this study is to determine the direct and indirect effects of Non-Performing Loans, Loan to Deposit Ratio, Operational Expenses of Operational Income and Bank Size on the Profitability through Capital Adequacy Ratio on banks listed on the Indonesia Stock Exchange in the period of 2014-2018. The samples used in this research are BUMN Banks consisting of four Banks and Foreign Exchange BUSN consisting of 10 Banks. The analysis used to determine the direct and indirect relationship of Non-Performing Loans, Loan to Deposit Ratio, Operating Expenses of Operational Income and Bank Size to the Profitability through Capital Adequacy Ratio is Path Analysis. Based on the results of the research in partial analysis, Non-Performing Loans and Bank Size have no direct and indirect effect on the profitability. However, Loan to Deposit Ratio and Operational Expenses of Operational Income have a direct and indirect effect on the profitability. Simultaneously, it can be seen that the simultaneous test results for Model 1 obtained Fcount value of 229,734 with p-value of 0,000 (<0.05), and for the 2del 2 Model obtained Fcount value of 11,655 with p-value of 0,000 (<0.05).
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Wang, Zhenlei, and Song Qin. "Research on Non-Performing Loans Ratio’s Controlling: Evidence from 13 Commercial Banks." Journal of Advanced Computational Intelligence and Intelligent Informatics 21, no. 6 (October 20, 2017): 1079–86. http://dx.doi.org/10.20965/jaciii.2017.p1079.
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The People’s Bank of China in 2013 released a report revealing that the balance of non-performing loans of Chinese banking financial institutions had rebounded for the first time since 2005. In this situation, establishing early warning models – to recognize the factors that influence non-performing loans, and take effective measures to prevent defaults and control the banks’ credit assets – has become a major new issue. This paper examines the determinants of the non-performing loans (NPL) ratio in the Chinese banking sector from 2005 to 2011 using a panel data model. This model incorporates a new factor called distance to default (DD). The results show that the rates of change of total asset size, commercial loan ratio, and distance to default correlate negatively with NPL. There are positive correlations between capital return ratio, net interest margin, and single-lag NPL with NPL. However, there is no significant correlation between the proportion of shareholders’ equity, or the proportion of total loans, and NPL. In conclusion, this study suggests that regulators should consider and pay more attention to all these banks’ operational indicators to control NPL.
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Ayem, Sri, and Sri Wahyuni. "PENGARUH LOAN TO DEPOSIT RATIO, CAPITAL ADEQUACY RATIO, RETURN ON ASSET DANNON PERFOMING LOAN TERHADAP RETURN SAHAM." Jurnal Akuntansi 5, no. 1 (June 15, 2017): 71. http://dx.doi.org/10.24964/ja.v5i1.258.
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This study aimed to examine the effect Loan to Deposit Ratio (LDR) , Capital Adequacy Ratio (CAR) , Return on Assets (ROA) and Non -Performing Loans (NPL) on stock returns banking companies listed in Indonesia Stock Exchange . The Independent variable used is the Loan to Deposit Ratio (LDR) , Capital Adequacy Ratio (CAR) , Return on Assets (ROA) and non- performing loan (NPL) dependent variable stock returns . The purpose of this study was to obtain empirical evidence about the influence of Loan to Deposit Ratio (LDR) , Capital Adequacy Ratio (CAR) , Non Performing Loan (NPL) and Return on Assets (ROA) on stock returns banking companies listed in Indonesia Stock Exchange . The population in this study is a banking company that is listed on the Indonesia Stock Exchange (IDX) the observation period 2008 to 2012 . Data used in this study was obtained from the Bank's Financial Statements obtained from the website of the Indonesia Stock Exchange and Bank Indonesia . Data analysis method used is multiple linear regression , hypothesis testing while using the simultaneous test ( F test ) to test the effect of these variables together and t test with a significance level of 5 % to test the effect of partial variables . Based on the test results , the results obtained simultaneously Loan to Deposit Ratio (LDR) , Capital Adequacy Ratio (CAR) , Return on Assets (ROA) and Non -Performing Loans (NPL) effect on stock returns in banking companies listed in Indonesian Stock Biursa , while partially Loan to Deposit Ratio (LDR) has a positive effect is not significant , its capital adequacy ratio (CAR) and Return on Assets (ROA) and a significant positive effect of Non performing loan (NPL) significant negative effect on stock returns in corporate banking . Predictive ability of the four variables on stock returns is 57.1 % , as indicated by the adjusted R2 , while the rest is influenced by other factors not included in our model .
Keywords: stock return, Loan to Deposit Ratio, Capital Adequacy Ratio, Return on Assets, Non-performing loan
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Sporta, Fred. "The Distressing Effect of Non-Performing Assets to Asset Quality for Commercial Banks in Kenya." INTERNATIONAL JOURNAL OF INNOVATION AND ECONOMIC DEVELOPMENT 3, no. 6 (2018): 71–83. http://dx.doi.org/10.18775/ijied.1849-7551-7020.2015.36.2006.
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Non-performing Assets is a ratio necessary when identifying financial distress effect on asset quality of financial institutions in Kenya specifically commercial banks in Kenya. Financial distress and asset quality have often been discussed separately in details, but not as satisfactorily this is because of its role of asset quality on distress risk levels of commercial banks. The current research established the distressing effect of non-performing assets on asset quality of Kenyan commercial banks. Nonloan ratio was represented by two variables: Non-performing assets to total loans ratio and Loan loss provision ratio. Thirty-eight Kenyan commercial banks were used for analysis for an eleven year period (2005-2015). Financial statements of commercial banks from CBK was used to extract secondary data for analysis. Results indicated that there a relationship between financial performance and capital adequacy regarding financial distress risk level. A correlation and panel regression analyses were carried out mainly to determine whether there was a relationship of non-performing assets and asset quality of commercial banks in Kenya, the outcome of the study indicated a positive relationship between Non-performing assets and asset quality. This study specifically gives a mindful and sense of reference to the depositor, all banking institutions including the commercial banks and policy-makers to high standards of asset quality by ensuring proper additional guidelines and controls are put in place to guard against non-performing loans.
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Kurniati, Titi, and Nurhayati Nurhayati. "ANALISIS KREDIT BERMASALAH DILIHAT DARI STANDAR NON PERFORMING LOAN (NPL) PADA PT. BANK MANDIRI (PERSERO) TBK." Inovator 9, no. 1 (May 14, 2020): 17. http://dx.doi.org/10.32832/inovator.v9i1.3001.
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<p class="15bIsiAbstractBInggris">This study aims to examine how much Non Performing Loans at PT. Bank Mandiri (Persero) Tbk registered on the Stock Exchange for the 2014-2018 period. This research method uses descriptive methods including NPL analysis and hypothesis testing using significance test (t test). The results of the study stated that "Non Performing Loans (NPLs) at PT. Bank Mandiri (Persero) Tbk less than 5% than expected ", thus the banks must suppress the Non Performing Loan (NPL) to below 5% according to the health standard Non Performing Loan (NPL) ratio, with the level of Non Performing ratio Loans (NPL) that are low (less than 5%) are categorized as good banks and will also have an effect on increasing bank earnings, and in lending, banks are required to exercise caution because these credit facilities are high risk which can affect the business continuity of PT. Bank Mandiri (Persero) Tbk.</p>
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Hafiz, Muhammad Shareza, Radiman Radiman, Maya Sari, and Jufrizen Jufrizen. "Analisis Faktor Determinan Return on Asset pada Bank BUMN yang Terdaftar di Bursa Efek Indonesia." Jurnal Manajemen dan Keuangan 8, no. 2 (December 17, 2019): 107–22. http://dx.doi.org/10.33059/jmk.v8i2.1681.
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This study aims to analyze the effect of Non-Performing Loans (NPLs), Capital Adequacy Ratio (CAR), and Loan to Deposit Ratio (LDR), simultaneously on Return on Assets (ROA) on BUMN Banks listed on the Indonesia Stock Exchange either partially and simultaneously. The research approach used in this study uses an associative approach. This research was conducted at the Indonesia Stock Exchange (IDX) specifically Bank BUMN listed on the Indonesia Stock Exchange (IDX). The population used in this study was state-owned Bank companies listed on the Indonesia Stock Exchange (IDX) which amounted to 4 companies. Based on the sample withdrawal criteria above, a research sample of 4 BUMN bank companies was obtained. The type of data used is documentary data, which are research data in the form of financial statements owned by state-owned banks listed on the Indonesia Stock Exchange. Data analysis techniques are used to test the effect of Non-Performing Loans (NPLs), Capital Adequacy Ratio (CAR), and Loan to Deposit Ratio (LDR) to Return on Assets (ROA) either partially or simultaneously is multiple linear regression. The results showed that partially Non Performing Loans (NPL) and Capital Adequacy Ratio (CAR) had a negative and not significant effect on Return on Assets. Partially, Loan to Deposit Ratio (LDR) has a negative and significant effect on Return on Assets. And simultaneously, Non Performing Loans, Capital Adequacy Ratio and Loan to Deposit Ratio have a significant effect on Return on Assets (ROA) at State-Owned Banks listed on the Indonesia Stock Exchange.
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Ashraf, Naseem, and Qurrat Ul Ain Butt. "Macroeconomic and Idiosyncratic Factors of Non-Performing Loans: Evidence from Pakistan’s Banking Sector." Journal of Finance and Accounting Research 1, no. 2 (August 30, 2019): 44–71. http://dx.doi.org/10.32350/jfar/0102/03.
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Using panel data approach in the Pakistan banking sector over the period 2010 to 2016, we examine the bank-specific and macroeconomic determinants of non-performing loans. We use quantitative research design with OLS random effect model. Furthermore, we use various regression and correlation analysis in this study. We find that rise in capital adequacy ratio, bank size, GDP growth rate, and inflation, reduces the non-performing loans (NPL) ratio. Our results also show that a rise in loan loss provisions enhances the NPL ratio. Our results suggest that banks with poor asset-quality can sabotage the growth of fiscal as well as the economic sector. Outcomes of the study emphasis on the need to clear-out the NPLs to keep financial sector sound. NPLs can cause high loan loss provisions which affect the capitalization of banks that ultimately impacts fiscal and economic growth. Bank supervisory agencies should therefore pay attention to monitory and macroeconomic policies of the banks. This study examines the impact of idiosyncratic and macroeconomic determinants of non-performing loans on banks’ asset quality using recent data from 2010 to 2016, the time period when major banking sector reforms were launched.
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Antari, Ni Putu Novi, and I. Gde Kajeng Baskara. "PENGARUH LDR, NPL, DAN BOPO TERHADAP PROFITABILITAS PADA LPD DI KABUPATEN GIANYAR." E-Jurnal Manajemen Universitas Udayana 9, no. 8 (August 3, 2020): 2998. http://dx.doi.org/10.24843/ejmunud.2020.v09.i08.p06.
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The purpose of this study is to explain the effect of Loan to Deposit Ratio, Non Performing Loans, and Operational Costs Operating Income on Profitability. This research was conducted at the Village Credit Institutions in Gianyar Regency in 2018. The number of samples used was 243 LPD, with saturated sampling method. Data collection method used is nonparticipant observation method, which is through observations made on LPD financial statement data publication documents. The type of data is quantitative data. The data source used is secondary data obtained from the Village Credit Empowerment Institute (LPLPD) of Gianyar Regency. The analysis technique used is multiple linear regression analysis techniques. The results of this study prove that the Loan to Deposit Ratio does not significantly influence profitability, Non Performing Loans and Operational Costs Operating Income has a negative and significant effect on the profitability of LPDs in Gianyar Regency.
Keywords: loan to deposit ratio, non-performing loans, operational costs operating income, profitability
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Pham, Nam Hai, and Nguyen Ngoc Tan. "Applying Bayesian method to investigate determinants of non performing loans of banks in Vietnam." Science & Technology Development Journal - Economics - Law and Management 5, no. 1 (February 9, 2021): first. http://dx.doi.org/10.32508/stdjelm.v5i1.704.
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This study was conducted to determine the factors affecting non-performing loans of commercial banks in Vietnam for the period 2007 - 2018. The study applies the Bayesian approach and the Random-walk Metropolis-Hastings algorithm to evaluate the impact of micro and macro factors on non-performing loans of commercial banks. The dependent variable is non-performing loans, which is measured by the ratio of non-performing loans divided by total outstanding loans; the independent variables in terms of bank characteristics are non-performing loans of the previous year, profitability, bank size, bak loans, and bank capital; the macro variables are inflation and GDP growth. Research data was collected from financial statements of 30 Vietnamese commercial banks and the General Statistics Office of Vietnam from 2007 to 2018. To increase the reliability and efficiency of the model as well as reasonable Bayes inference, a convergence test of the MCMC chain was performed. The result of this study shows that non-performing loans of the previous year, bank size, bank loan, bank capital, and inflation have positive impacts on bank non-performing loans. In addition, bank profitability and GDP growth rate are factors that have the opposite effects. Based on the research results, the author proposes policy implications for the decision-makers to help banks reduce non-performing loans and promote banks to operate effectively and more efficiently.
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Safitri, Dewanti, and Asep Muslihat. "Pengaruh Capital Adequacy Ratio, Non Performing Loan dan Return On Asset Terhadap Penyaluran Kredit." Journal of Economic, Bussines and Accounting (COSTING) 4, no. 2 (March 12, 2021): 565–74. http://dx.doi.org/10.31539/costing.v4i2.1581.
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This study aims to determine whether there is an influence of capital adequacy ratio, non-performing loans, return on assets, lending. The effect of capital adequacy ratio financing on lending, the effect of non-performing loans on lending and the effect of return on assets on lending, and capital adequacy ratios, non-performing loans and return on assets on lending. 44 samples were taken from 2016 to 2019 with data on monthly capital adequacy ratios, non-performing loans, return on assets, and lending. The statistical methods taken in this research are multiple analysis, classic assumption test, descriptive statistical analysis, determination analysis and hypothesis testing using SPSS 25 analytical tools.In this research, we know the effect of capital adequacy ratio, non-performing loans, and return on assets in partial or joint lending. This method is a descriptive verification method with a quantitative approach to the source of annual financial statements at commercial banks. Purposive sampling technique. The data obtained were analyzed by testing the validity of the data, multiple linear regresis analysis and hypothesis testing using the f test and t test.The results of this study show that the partial capital adequacy ratio has a negative effect on lending, non-performing loans on lending have a positive effect and the return on assets on lending has a positive effect. Whereas jointly the credit distribution is very influential.
Keywords: Capital Adequacy Ratio, Nonperforming Loans, Return On Assets, Lending
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Kieu Oanh Dao, Le, Thi Yen Nguyen, Sarfraz Hussain, and Van Chien Nguyen. "Factors affecting non-performing loans of commercial banks: the role of bank performance and credit growth." Banks and Bank Systems 15, no. 3 (August 13, 2020): 44–54. http://dx.doi.org/10.21511/bbs.15(3).2020.05.
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The recent crisis of non-performing loans in the banking system has hit the Vietnamese economy hard. The GDP has been fallen down, while the bad debt ratio in the banking system has risen dramatically to 17.2 percent, and it takes more time to restore the economy and banking system. This research aims to define aspects that impact non-performing commercial bank loans in Vietnam. It covers the period of 2008–2017 using 200 identified banks of Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange, and applies methods based on the regression of pooled ordinary least squares, fixed and random effects models, in particular, generalized least squares to confirm the stability of the regression model. The results show that non-performing loans this year will positively affect those in the next year. In addition, a raise in bank performance and credit growth also leads to the reduction in non-performing loans from banks. Regarding macroeconomic factors, higher interest rates would have a major and beneficial influence on failed loans in terms of macroeconomic dynamics, and, therefore, little effect on economic activity and inflation. Therefore, Vietnamese banking system should reduce the systematic risk and improve monitoring processes, drawing on the experience of global banks with extensive experience in risk management.
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Makri, Vasiliki, Athanasios Tsagkanos, and Athanasios Bellas. "Determinants of non-performing loans: The case of Eurozone." Panoeconomicus 61, no. 2 (2014): 193–206. http://dx.doi.org/10.2298/pan1402193m.
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The purpose of the present study is to identify the factors affecting the non-performing loans rate (NPL) of Eurozone?s banking systems for the period 2000-2008, just before the beginning of the recession. In our days, Eurozone is in the middle of an unprecedented financial crisis, calling into question the soundness of the banking systems of European countries. Looking at both macro-variables (e.g. annual percentage growth rate of gross domestic product, public debt as % of gross domestic product, unemployment) and micro-variables (e.g. loans to deposits ratio, return on assets, return on equity), we investigate which factors determine NPL on aggregate level. Overall, our findings reveal strong correlations between NPL and various macroeconomic (public debt, unemployment, annual percentage growth rate of gross domestic product) and bank-specific (capital adequacy ratio, rate of nonperforming loans of the previous year and return on equity) factors.
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Sari, Laynita, and Renil Septiano. "EFFECTS OF INTERVENING LOAN TO DEPOSIT RATIO ON PROFITABILITY." Journal of Accounting and Finance Management 1, no. 2 (October 14, 2020): 239–52. http://dx.doi.org/10.38035/jafm.v1i2.28.
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Government banks have a higher level of trust in society, as most of these shares are owned by the Government. Ratio used to assess a bank’s performance is the Return on Asset ratio. Each bank will try to keep its Return on Asset ratio consistently rising and the Non Performing Loan ratio consistently falling. But the phenomenon is that the ratio of Return on Asset and Non Performing Loan at the Government Bank fluctuated from 2014 to 2019. I will therefore examine the factors that affect the ratio of Return on Assets and Non-Performing Loans to government banks. In this study, the ratios used were Non Performing Loan, Net Interest Margin, Capital Adequacy Ratio as an independent variable, Loan to Deposit Ratio as an intervening variable and Return on Asset on its dependent variables. The result that the Variable Loan to Deposit Ratio mediates the relationship between Net Interest Margin and Return on Asset.
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Indriyani, Ulfa, and Shinta Ningtiyas Nazar. "PENGARUH MAKRO EKONOMI DAN RASIO PERBANKAN TERHADAP PREDIKSI FINANCIAL DISTRESS." Jurnal Ilmiah Akuntansi Universitas Pamulang 8, no. 1 (March 17, 2020): 53. http://dx.doi.org/10.32493/jiaup.v8i1.3769.
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Penelitian ini bertujuan untuk mengetahui dan memberikan bukti empiris pengaruh bi rate,nilai tukar,non performing loan, beban operasi dibanding dengan pendapatan operasi dan loans to deposit ratio baik secara parsial maupun simultan terhadap prediksi financial distress pada perusahaan perbankan yang terdaftar di Bursa Efek Indonesia periode 2015-2017. Penelitian ini merupakan penelitian kuantitatif dengan total sampel sebanyak 36 perusahaan yang dipilih menggunakan teknik purposive sampling berdasarkan kriteria yang telah di tentukan. Data yang digunakan merupakan data sekunder berupa laporan keuangan tahunan yang telah di audit periode 2015-2017 yang diambil dari situs Bursa Efek Indonesia. Teknik analisis data yang digunakan adalah statistik deskriptif, uji multikolinearitas, analisis regresi logistik biner dan uji hipotesis. Hasil penelitian yang dilakukan berdasarkan uji t, menunjukan bahwa non performing loan berpengaruh terhadap prediksi financial distress sedangkan bi rate, nilai tukar, beban operasi dibanding dengan pendapatan operasi dan loans to deposit ratio tidak berpengaruh terhadap prediksi financial distress. Hasil penelitian yang dilakukan berdasarkan uji f, secara simultan bi rate,nilai tukar,non performing loan,beban operasi dibanding dengan pendapatan operasi dan loans to deposit ratio berpengaruh terhadap prediksi financial distress.
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Aulia Rahma, Ayu, and Andam Dewi Syarif. "THE DETERMINANT OF DIVIDEND PAYOUT RATIO: LONG-TERM ANALYSIS IN BUKU EMPAT'S BANKS DURING PERIODS 2008 - 2017." Dinasti International Journal of Management Science 2, no. 2 (November 17, 2020): 245–54. http://dx.doi.org/10.31933/dijms.v2i2.449.
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This research purposed to explored and analyzed those influence from capital adequacy ratios, net interest margins, loan to deposit ratios and non-performing loans towards dividend payout ratios on banks that registered as Buku Empat 2008-2017. Sampling gathered in this research by quantitative approach. Samples which obtained and used were Mandiri Bank, BRI, BNI, and BCA with observation period for 10 years. Data research was secondary data by panel data analysis method. The results shows that capital adequacy ratio had positive and significant influence towards dividend payout ratio, Net interest margin had negative and significant influence towards dividend payout ratio, Loan to deposit ratio had negative and significant impact on dividend payout ratio, non-performing loans had positive and significant impact towards dividends payout ratio.
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Ozili, Peterson K. "Non-performing loans and financial development: new evidence." Journal of Risk Finance 20, no. 1 (January 21, 2019): 59–81. http://dx.doi.org/10.1108/jrf-07-2017-0112.
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Purpose This paper aims to investigate the influence of financial development on non-performing loans (NPL). Design/methodology/approach The model used in this study follows the NPL model of Louzis et al. (2012), Ozili (2015) and Beck et al. (2015). Findings The findings indicate that financial development, measured as foreign bank presence and financial intermediation, are positively associated with NPLs. Also, bank efficiency, loan loss coverage ratio, competition and banking system stability are inversely associated with NPLs, while NPLs are positively associated with banking crises and bank concentration. In the regional analysis, NPLs are negatively associated with regulatory capital and bank liquidity, implying that banking sectors with greater regulatory capital and liquidity experience fewer NPLs. Practical implications National bank regulators/supervisor should not only consider the role that financial development structures play in influencing aggregate NPLs but also ensure that thorough supervision of the lending practices of banks is in place as well as the active monitoring of the financial intermediation process in the country. Originality/value The study is the first to use a global sample to examine the direct relationship between NPL and financial development.
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Ramadayanti, Wiwi, and Kosasih Kosasih. "The Influence of Financial Performance on People’s Business Credit in Banking Companies for the Period 2010-2019." Aptisi Transactions on Management (ATM) 5, no. 1 (January 18, 2021): 73–78. http://dx.doi.org/10.33050/atm.v5i1.1435.
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Bank Rakyat Indonesia, Bank Mandiri, and Bank Negara Indonesia are some of the banking companies that provide small business loans for MSME players with a view to find out the Capital Adequacy Ratio, Non-Performing Loan and Return On Asset in banking companies that distribute people’s Business Loans for the period 2010 - 2019. Researchers used Quantitative research methods with Descriptive and Verification research methods. People’s Business Credit is one of the programs issued by the government to help small communities that have problems with capital. The KUR program is the solution, with a fairly fast, easy process and very little interest. Research result on variables Capital Adequacy Ratio, Non-Performing Loan, and Return On Asset in Banking Companies for the period 2010 - 2019. The results of the study on the Capital Adequacy Ratio variable did not effect on the level of trust and Non-Performing Loan variable there was a negative and significant level on the Business Credit to Banking Companies for the period 2010-2019.
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Al Zaidanin, Jamil Salem, and Omar Jamil Al Zaidanin. "The impact of credit risk management on the financial performance of United Arab Emirates commercial banks." International Journal of Research in Business and Social Science (2147- 4478) 10, no. 3 (May 1, 2021): 303–19. http://dx.doi.org/10.20525/ijrbs.v10i3.1102.
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The main purpose of this study is to measure up to what extent the independent factors defined by capital adequacy ratio, non-performing loans ratio, cost-income ratio, liquidity ratio, and loans-to-deposits ratio impact the financial performance of sixteen commercial banks operating in the United Arab Emirates using panel data for the period of 2013-2019. The secondary data was collected from banks and examined by applying standard descriptive statistics and the random effect model for hypothesis testing. It is concluded from the regression outcomes that non-performing loans ratio and cost-income ratio have a significant negative impact on commercial banks profitability in the United Arab Emirates, while capital adequacy ratio, liquidity ratio, and loans -to-deposits ratio all have a very weak positive relationship on the return on assets but they are not determinants of bank’s profitability due to the insignificant statistical impact on it. It is therefore suggested that to enhance financial performance and minimize the risk of non-performing loans in the future, banks must watch very carefully the loans’ performance and analyze thoroughly the clients’ credit history and ability to pay back their debts prior to any approval of loan applications. Furthermore, banks should continuously improve their assets utilization, liquidity, and techniques of managing operating costs, improve the impact of capital adequacy, and the use of deposits for lending activities from a weak positive impact to a significant positive impact on their profitability. The researchers recommend that future studies on credit risk management influence on banks’ financial performance should consider more independent variables and longer periods of study such as twenty or thirty years to have more accuracy and generalized results.
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Yuzevin, Thesya, and Yacobo P. Sijabat. "ANALISIS PENGARUH RETURN ON ASSET, CAPITAL ADEQUACY RATIO, LOAN TO DEPOSIT RATIO TERHADAP TINGKAT KREDIT MACET PADA PERUSAHAAN PERBANKAN BUMN TAHUN 2017-2019." Jurnal Riset Entrepreneurship 3, no. 2 (August 1, 2020): 64. http://dx.doi.org/10.30587/jre.v3i2.1596.
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Banks are briefly defined as business entities that collect funds from the public and channel them back to the public in the form of credit or other forms, which are one of the influential sectors in a country's economy. Channeling funds to the public or also called credit (leasing) aims to help improve the lives of many people. The existence of this loan often faces problems, namely non-performing loans (NPLs) where there are credit risks faced by the Bank due to the inability of the customer or debtor to return the amount of loans received from the Bank along with interest within a predetermined period of time. This study aims to determine the effect of Return On Assets (ROA), Capital Adequacy Ratio (CAR), Loan To Deposit Ratio (LDR) on the level of non-performing loans (NPLs) in SOE banking companies in 2017-2019. The research method used is descriptive quantitative by using combined panel data from cross sections and time series using SOE Bank financial report data for the 2017-2019 period. The results of this study indicate the influence of ROA on NPL, while CAR and LDR do not have a significant effect that indicates good company performance.
Keywords: Bank, NPL, ROA, CAR, LDR
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Christopher Hartawan Bengawan, Herman Ruslim,. "The Effect of Capital Aset and Liability Ratio on Non-Performing Loan." Jurnal Akuntansi 23, no. 3 (January 20, 2020): 433. http://dx.doi.org/10.24912/ja.v23i3.612.
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The purpose of this study is to analyze the effect of capital adequacy ratio (CAR), loan to deposit ratio (LDR) and inefficiency on non-performing loans at commercial banks in Indonesia. The population used as the object of research amounted to 45 banks, while only 41 banks that fit the research criteria and serve as a research sample. The research period is 2016-2018, so the amount of data observed is 123 data. This study uses panel data with secondary data types. This research was processed by multiple linear analysis of panel data with the help of software e-views version 9.00. The result showed that CAR, LDR, and inefficiency simultaneously affected NPL. Partially, CAR showed a negative result but does not significantly influence NPL. While LDR and inefficiency proved to be a positive and significant effect on NPL.
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Wibowo, Yohan Henri. "HUBUNGAN ANTARA RASIO KREDIT BERMASALAH DENGAN RASIO PROFITABILITAS: Studi Empiris pada BPRse-Kota Tangerang Periode 2015." Jurnal Riset Manajemen dan Bisnis (JRMB) Fakultas Ekonomi UNIAT 2 (October 1, 2017): 179–86. http://dx.doi.org/10.36226/jrmb.v2is1.52.
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The aims of this study is to find empirical evidence, that there is a significant relationship between the Non Performing Loan Ratio is reflected in indicators of Non-Performing Loan (NPL) with a Profitability Ratio that is reflected in the indicators Net Profit Margin (NPM).The collecting of data method is secondary sources from Quarterly Financial Report Rural Banks (hereinafter referred to as BPR) as the city of Tangerang. The sample in this study is BPRin Kota Tangerang are categorized as Micro, Small and Medium Enterprises (hereinafter referred to as SMEs). The hypothesis was tested by normality test and linear regression, The results of the study are not found empirical evidence that there is a significant relationship between Non-Performing Loan Ratios were reflected in NPL with Ratio Profitability indicators are reflected in indicators of NPM.These results indicate that required the mediating factor, namely the Contractual Interest Income from Loans and Expenses of Assets Allowance (hereinafter referred PPAPWD)
Keywords: Non-Performing Loan, Net Profit Margin
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Senosuryoputro, Benedictus Wibisono, and Ratnawati Kurnia. "Pengaruh Informasi Rasio Keuangan dan OpiniAudit Tahun Sebelumnya Terhadap Penerimaan Opini Audit Going Concern." Jurnal ULTIMA Accounting 7, no. 2 (August 1, 2016): 75–93. http://dx.doi.org/10.31937/akuntansi.v7i2.182.
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This research as causal research studies conducted to establish a causal relationship between variables Quick Ratio, Loan to Deposit Ratio, Non-Performing Loans, Return on Assets, Capital Adequacy Ratio, and Prior Year Audit Opinion on the acceptance of going concern audit opinion. The object of this research is the banking companies listed in Indonesia Stock Exchange in 2008 - 2012. Samples were taken by using purposive sampling as many as 24 banking company. Criteria taken among companies that publish financial statements audited by an external auditor in the year 2008 - 2012 and has a poor financial ratios (LDR<78% and LDR> 92%, NPL>5%, ROA<1.2%, and CAR<8%) at least one time period between the years 2008-2012, in accordance with regulation of Bank Indonesia. This research use Regression logistic, because the dependent variable measured by nominal scale, therefore dummy model is used, where 1 is symbolized for a company that received going concern audit opinion, and 0 is symbolized for a company that not received going concern audit opinion. In testing the hypothesis can be seen that only the previous year's audit opinion variable which is non-financial information, have a significant influence on the acceptance of going concern audit opinion. While other variables such as Quick Ratio, Loan to Deposit Ratio, Non-Performing Loans, Return on Assets and Capital Adequacy Ratio which is a ratio of financial information, does not have a significant effect on the auditor in the provision of going concern audit opinion.
Keywords: Acceptance of Going Concern Audit Opinion, Quick Ratio, Loan to Deposit Ratio, Non-Performing Loans, Return on Assets, Capital Adequacy Ratio, Prior Year Audit Opinion.
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Suharyono, Suharyono, and Teguh Widodo. "DAMPAK KRISIS GLOBAL TERHADAP NON PERFORMING LOAN BANK DEVISA NASIONAL." Inovbiz: Jurnal Inovasi Bisnis 4, no. 2 (December 1, 2016): 81. http://dx.doi.org/10.35314/inovbiz.v4i2.72.
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Abstract: The global crisis has resulted non performing loan (NPL) increased. The measurement of the banks non performing loan ratio is applicable to assess the composite rating of a bank, as the impact of the global crisis toward non performing loan of foreign exchange banks. This study aimed to determine whether there was significant difference between foreign exchange banks non- performing loan before and after the global crisis. The Bank’s non performing loans was measured by comparing the Non-Performing Loan to the total credit. The population of this study was 35 foreign exchange banks. The Hypothesis was tested by using Mann Whitney different test and Independent Sample T Test. The research of this study showed that non performing loan of foreign exchange banks before, during, and after global crisis did not have significant difference. Key words: NPL, Bank, Foreign Exchange, Crisis, global.
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Indraswari, Arinah, and Endah Nurhawaeny Kardiaty. "PENGARUH CAPITAL ADEQUACY RATIO (CAR), NON PERFORMING LOAN (NPL), BIAYA OPERASIONAL PADA PENDAPATAN OPERASIONAL (BOPO), LOAN TO DEPOSIT RATIO (LDR) TERHADAP RETURN ON ASSET (ROA) Pada Bank BUMN Periode 2013 - 2017." Jurnal Proaksi 4, no. 1 (July 14, 2019): 101–20. http://dx.doi.org/10.32534/jpk.v4i1.581.
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This research has a purposed to provide empirical evidences about the CapitalAdequacy Ratio (CAR), Nonperforming Loans (NPL) , Operating Expenses to Operating Income(BOPO), Loan to Deposit Ratio (LDR) towards profitability (ROA) on state owned bank. Timeperiod uses in this research begin from 2013 until 2017. The analyzed method in this research usesmultiple linear regressions including classical assumption such as normality test, multicolinearitytest, heterocedacity test, and autocorrelation test. The result shown that Operating Expenses toOperating Income (BOPO) variables have positive relation and significantly influence towardsROA. Meanwhile Capital Adequacy Ratio (CAR), Nonperforming Loans (NPL) , Loan to DepositRatio (LDR) have negative relation and significantly influence towards ROA.Keywords: Capital Adequacy Ratio (CAR), Nonperforming Loans (NPL) , Operating Expensesto Operating Income (BOPO), Loan to Deposit Ratio (LDR) and Profitability
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Towhid, ASM, Shinta Amalina Hazrati Havidz, and Mohammed Ameen Qasem Ahmed Alnawah. "BANK-SPECIFIC AND MACROECONOMIC DETERMINANTS OF NON-PERFORMING LOANS OF COMMERCIAL BANKS IN BANGLADESH." Dinasti International Journal of Management Science 1, no. 1 (October 27, 2019): 86–101. http://dx.doi.org/10.31933/dijms.v1i1.28.
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The prime objective of this research is to identify the main determinants of non-performing loans in the commercial banking system of Bangladesh for the period 2011-2016 using panel data modeling. This paper uses balanced panel data method to examine both bank-specific (return on average assets, net loans to deposit ratio, bank size, cost-to-income ratio, and capital adequacy ratio) and macroeconomic (real GDP growth rate and inflation rate) variables. To attain the objectives, the present research analyzed historical data and panel data model using secondary data. To examine panel data modeling, the researcher considers 16 private commercial banks in Bangladesh and executed pooled OLS model, fixed effect model, random effect model and random effect with the robust standard error. The researcher found a negative significant relationship for return on average assets, net loans to deposit ratio and inflation rate in relation to NPLs and results are supporting the previous researcher. Based on the findings, the study offers some valuable strategies to the management to improve return on average assets, net loans to deposit ratio and inflation rate to reduce the NPLs at least under the tolerance level. The study also delineates the limitations of this work and direction for future research.
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Oli, Sudan Kumar. "Deprived Sector Lending and Non-Performing Loans in Nepal." Applied Economics and Finance 8, no. 4 (July 9, 2021): 1. http://dx.doi.org/10.11114/aef.v8i4.5261.
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This study investigates the empirical impact of deprived sector lending on the nonperforming loans of commercial banks in Nepal using secondary data collected from 27 commercial banks from the fiscal year 2009 to 2018 with 262 observations. The study employed the OLS regression method for the robustness test of the result. The study establishes empirical relation between deprived sector lending and nonperforming loan of banks which was the major motivation of this study. The basic regression result shows that beta coefficient of DSL is negative which indicates higher the ratio of deprived sector lending, the lower would be the NPL and vice-versa. Similarly, this study also examines the DSL movement's impact on NPL. The result shows that the beta coefficient of ∆DSL is significantly negative with ∆NPL. This indicates that the higher the growth of DSL, the lower would be NPL growth and vice-versa. This shows that the influence of DSL is very low as per this empirical result. Overall, the study shows there is an inverse relationship between deprived sector lending and nonperforming loan of banks. The result indicates that the remark of commercial bank’s on the deprived sector lending policy of NRB is not true. The operational cost might increase with direct lending to deprive sector and that leads to decrease in the bank’s overall profit but not increases their NPL.
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Zulkarnain, Zulkarnain, and Sally Maria Bramana. "ANALISIS PINJAMAN BERMASALAH (LAR) TERHADAP RETURN ON INVESTMENT (ROI) UPK BUNGA TANJUNG PADA PINJAMAN BERGULIR PROGRAM KOTATANPA KUMUH (KOTAKU) DI DESA TANJUNG BARU KECAMATAN BATURAJA TIMUR." Jurnal Ecoment Global 5, no. 1 (February 24, 2020): 98. http://dx.doi.org/10.35908/jeg.v5i1.867.
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<p>This study aims to determine whether the problem loans (LAR) affect the Return on Investment (ROI) UPK Bunga Tanjung on the Loans without Slums City Program (KOTAKU) in Tanjung Baru Village, East Baturaja District. The method used in this research is descriptive method. By using qualitative and quantitative data analysis techniques. The results obtained by the ratio of problem loans (LAR) UPK Bunga Tanjung in the Revolving Loans of the City without Slums Program (KOTAKU) in Tanjung Baru Village, East Baturaja Subdistrict always increase with an average ratio of 15.53%. While the Return On Investment (ROI) ratio always decreases with an average ratio of 10.15%. Non-performing loans (LAR) greatly affect the level of Return On Investment (ROI) in revolving loans UPK Bunga Tanjung Without Slum City Program (KOTAKU) in Tanjung Baru Village, East Baturaja District in 2014-2018. A small level of non-performing loans will benefit the UPK and conversely a high level of problem loans will reduce the profitability of the UPK.</p><p> </p><p><strong>Keywords:</strong> Non-performing Loans (LAR), Return On Investment (ROI), Slumless City Program (KOTAKU).</p>
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Lee, Cheng-Few, Kehluh Wang, and Ya-Hui Peng. "Cost Structure and Efficiency of the Credit Departments of the Farmers' Associations in Taiwan." Review of Pacific Basin Financial Markets and Policies 09, no. 03 (September 2006): 385–403. http://dx.doi.org/10.1142/s021909150600077x.
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This study addresses the cost structure and operational efficiency of the credit departments of the farmers' associations in Taiwan, adopting both stochastic cost frontier analysis and data envelopment analysis. The factors that influence operational efficiency are also examined. In particular, problems of loan quality are considered to account for the considerable amount of non-performing loans. The results of this study indicate that economies of scale exist. However, the credit departments of the farmers' associations do not benefit from economies of scope. Non-performing loans are associated with a cost increase of approximately 17.6%. Regression analysis verifies that the non-performing loan ratio significantly and negatively influences all indicators of efficiency and that the 1997 Asian financial crisis also has a negative impact on efficiencies.
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Pop, Ionuț-Daniel, Nicoleta Chicu, and Andrei Răduțu. "Non-performing loans decision making in the Romanian banking system." Management & Marketing 13, no. 1 (March 1, 2018): 761–76. http://dx.doi.org/10.2478/mmcks-2018-0004.
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Abstract Non-Performing Loans (NPLs) are representing nowadays one of the main challenges for the banking systems all over the world. Therefore, a sustainable decision-making process should be implemented, for minimizing the effects of credit risk. The current paper uses a dynamic panel regression model to present the determinants of NPLs for the largest five banks of the Romanian Banking System during 2007-2016. A Generalized Method of Moments (GMM) regression is used and defined under three different types of variables: bank specific indicators, macroeconomic indicators and qualitative variables. Other studies illustrated also the determinants of NPLs in various banking systems from all around the world, such as Japan, China or several CEE countries (especially the emergent ones). After an in-depth analysis of the literature and Romanian market, the following variables were found to be relevant and were introduced into a dynamic data panel model: unemployment rate, annual average growth rate of gross domestic product, return on equity (ROE), loan to deposit ratio (LTD). The existing literature presents ROE as having a negative impact on NPLs, unemployment rate being positive correlated with NPLs and a negative relationship between economic growth and such loans. Our contribution to the current literature is represented by the introduction of two additional qualitative variables (Board Risk Management Ratio (BRMR), as the proportion of risk managers within the Board of Directors of each bank in question and the Expert Aggregate Priority Vector (EAPV), as the aggregated perceived risk regarding the NPLs). The decision of introducing these variables relies on previous research made in this area, results being validated by experts from the Romanian Banking System, according to the BASEL III and NBR criteria. The results of the current paper are consistent with the existent literature, the correlations and impact of the variables being relevant for the subject matter.
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Kurniati, Eling Ri, and Febriana Eriska Putri. "PENGARUH NPL, CAR, ROA DAN BI RATE TERHADAP PENYALURAN KREDIT PADA BANK UMUM YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2014 – 2016." Medikonis 11, no. 1 (July 31, 2020): 71–84. http://dx.doi.org/10.52659/medikonis.v11i1.28.
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The problem on this research was the number of internal and external factors of the bank that affect lending to commercial banks.This research aimed to analyze the effect of partial Non Performing Loans (NPL), Capital Eduquecy Ratio (CAR), Return On Assets (ROA) and BI Rate on lending to commercial banks, and analyze the influence of Non Performing Loan (NPL) variables, Capital Eduquecy Ratio (CAR), Return On Assets (ROA) and BI Rate simultaneously to lending to commercial banks. This research was associative causal. The data used in this research was secondary data from the results of Bank Indonesia publications and the official IDX website at www.idx.co.id. The population on this research were all publicly traded public banks listed on the IDX. The sampling technique in this research used purposive sampling method. The total sample in this research were 25 banks. Data Analysis in this research using multiple linear regression analysis with SPSS software. The results showed that the partial Non Performing Loans (NPL), Capital Eduquecy Ratio (CAR), and BI Rate did not affect credit distribution while the Return on Assets (ROA) variable partially affected the lending. Simultaneously the Non Performing Loan variable (NPL), Capital Eduquecy Ratio (CAR), Return On Assets (ROA) and the BI Rate have an effect on lending.
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Gabriel, Okoh, Inim Ekemini Victor, and Idachaba Odekina Innocent. "Effect of Non-Performing Loans on the Financial Performance of Commercial Banks in Nigeria." American International Journal of Business and Management Studies 1, no. 2 (May 31, 2019): 1–9. http://dx.doi.org/10.46545/aijbms.v1i2.82.
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The study examined the effect of Non-Performing Loans on the financial performance of commercial banks in Nigeria between the periods of 1985 to 2016. The study employed the multiple regression techniques to analyze data collated from the Central Bank of Nigeria (CBN) statistical bulletin and Nigeria Deposit Insurance Corporation (NDIC) publications for various years. The result of the study shows that Non-Performing Loans to Total Loans ratio (NPL/TLR) and Cash Reserve Ratio (CRR) had statistically negative significant effect on Return on Asset (ROA). These result shows that a high level of non-performing loans would reduce the financial performance of commercial banks in Nigeria. Consequently, the study recommends that the regulatory authorities in Nigeria should create and support an environment where commercial banks in Nigeria can have a strong risk management practices.
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Guan, Rong, Haitao Zheng, Jie Hu, Qi Fang, and Ruoen Ren. "The Higher Carbon Intensity of Loans, the Higher Non-Performing Loan Ratio: The Case of China." Sustainability 9, no. 4 (April 22, 2017): 667. http://dx.doi.org/10.3390/su9040667.
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Ivakhnenkov, Sergiy, Svitlana Hlushchenko, and Kamilla Sverenko. "Macroeconomic factors that influence the bank loans rate in international and Ukrainian practice." Economics of Development 19, no. 4 (March 31, 2021): 35–47. http://dx.doi.org/10.21511/ed.19(4).2020.04.
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The goal of the paper is to disclose the links between the dynamics of macroeconomic indicators and the level of bank loan rates based on international and Ukrainian practice. On the basis of the previous analysis, the paper also aims to identify the key trends in the formation of loan prices in the long run and identify problematic issues related to bank loan rates. The main characteristics of bank lending rates in Ukraine are: a) their high rates; b) sharp changes in the weighted average bank loan rates from year to year; c) higher loan rates for households compared to the cost of bank loans for businesses; d) higher bank loan rates for short- and medium-term loans versus long-term ones; e) lower rates on loans in foreign currency compared to the loans in hryvnia; and f) high share of non-performing loans to households and businesses in bank portfolios. In the context of world and Ukrainian practice, the paper demonstrates the reverse effect between macroeconomic indicators such as GDP per capita, the ratio of loans to GDP, the ease of doing business index and bank loan rates. The article also demonstrates a direct relationship between the dynamics of inflation rate in the country, the dynamics of non-performing bank loans and their rates.
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Jati, Waluyo. "The Effect of Non Performing Loan and Capital Adequacy Ratio on Return on Assets in Bank Victoria International, Tbk Period 2009-2018." Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences 4, no. 1 (January 21, 2021): 482–91. http://dx.doi.org/10.33258/birci.v4i1.1630.
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This study aims to determine the effect of Non-Performing Loans and Capital Adequacy Ratio on Return on Assets at PT. Bank Victoria International, Tbk. 2009-2018 period The method used is explanatory research. The analysis technique uses statistical analysis with regression testing, correlation, determination, and hypothesis testing. The results of this study that Non Performing Loans have a significant effect on Return on Assets by 60.4%, hypothesis testing is obtained t count> t table or (3.496> 2.306). Capital Adequacy Ratio has a significant effect on Return on Assets of 2.8%, hypothesis testing obtained t count <t table or (-0.477 <2.306). Non-Performing Loan and Capital Adequacy Ratio simultaneously have a significant effect on Return on Assets, the regression equation is Y = 8.666 + 0.569X1 + 0.049X2 and a determination value of 60.8%, hypothesis testing is obtained by the value of F count> F table or (5,431> 4,350).