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Determinants of non-performing loan comparative study of banks in Indonesia and Nepal
| Content Provider | Scilit |
|---|---|
| Author | Singh, S. K. Sudana, I. M. |
| Copyright Year | 2018 |
| Description | The main aim of this study was to find out the effect of macro-economic factors (GDP, Inflation, and Exchange rate) and bank specific factors (Bank size, level of capital, ROA, CAR and NLIR) on the NPL of banks in Indonesia and Nepal. This study used regression analysis to determine the effect of the independent variables consisting of macro-economic factors and bank specific factors. Based on the analysis results, there are three variables (GDP, bank size and NLIR) that have a significant effect on the NPL of Indonesian banks. The variables of GDP and inflation also have a significant effect on the NPL of Nepali banks. In both countries, GDP has a negative and significant effect on NPL but only inflation has a negative and significant effect on NPL only in Nepal. The change in GDP affects both countries but for inflation, banks in Nepal were not affected.This chapter explores the effect of macro-economic factors such as growth domestic product (GDP), Inflation and Exchange rate, and bank specific factors. The bank specific factors include Bank size, level of capital, Return on Assets, Capital Adequacy Ratio and NLIR on the Non-performing loan (NPL) of banks in Indonesia and Nepal. Developing countries like Indonesia and Nepal face big challenges and opportunities to improve their financial problems. In both countries, GDP has a negative and significant effect on NPL but only inflation has a negative and significant effect on NPL only in Nepal. The size of NPLs can be affected by various macroeconomic factors and specific factors in the banks themselves. Non-performing loans occur when borrowers are experiencing repayment difficulties when it comes to some or all of their obligations to the creditors as agreed upon in earlier contracts. The variable of CAR for Indonesia and Nepal has a negative but not significant effect on NPL. |
| Related Links | https://content.taylorfrancis.com/books/download?dac=C2017-0-61685-1&isbn=9781351241892&format=googlePreviewPdf |
| Ending Page | 495 |
| Page Count | 5 |
| Starting Page | 491 |
| DOI | 10.1201/9781351241892-90 |
| Language | English |
| Publisher | Informa UK Limited |
| Publisher Date | 2018-04-17 |
| Access Restriction | Open |
| Subject Keyword | Book Name: Increasing Management Relevance and Competitiveness Inflation Exchange Rate Bank Specific Factors Effect of Macro Level of Capital |
| Content Type | Text |
| Resource Type | Chapter |
