DETERMINANT FACTORS OF NON-PERFORMING LOANS IN CHINESE COMMERCIAL BANKS
The purpose of this research is to identify the influence of GDP growth rate, bank interest rate, inflation rate, capital adequacy ratio, and return on asset towards non-performing loans in Chinese commercial banks partially and simultaneously. This study has applied descriptive statistical analysis, classical hypothesis testing, multiple linear regression, and hypothesis testing. When selecting the observation data, this research adopts the intentional sampling method and panel data, 70 units of observational data in total, one part of the data was taken from the financial reports of seven selected sample companies on the Shanghai Stock Exchange in China, and another part of the data was taken from the kyle website. The method used in a quantitative approach with the instrument is EViews 10. The result indicates that BIR and IFR have a partially negative significant influence on NPL. However, GDP growth rate, CAR, and ROA have a negative insignificant effect on NPL. Simultaneously, all of the independent variables have a significant effect on NPL which is described by the value of 63.9% and the left 36.1% is explained by another factor that is excluded in this study. Furthermore, IFR was chosen as the most significant factor which influences NPL.
Chen, F. W., Feng, Y., & Wang, W. (2016). Impacts of Financial Inclusion on Non-Performing Loans of Commercial Banks: Evidence from China. Sustainability, 10(9), 3084.
Chi, Q., & Li, W. (2017). Economic Policy Uncertainty, Credit Risks and Banks’ Lending Decisions: Evidence from Chinese Commercial Banks. China Journal of Accounting Research, 10(1), 33-50.
Hardiyanti, N. (2012). Analisis Pengaruh Insider Ownership, Leverage, Profitabilitas, Firm Size, dan Dividen Payout Ratio terhadap Nilai Perusahaan. Semarang: Universitas Diponegoro.
Ikram, A., Su, Q., Ijaz, F., & Fiaz, M. (2016). Determinants of Non-Performing Loans: An Empirical Investigation of Bank-Specific Microeconomic Factors. Journal of Applied Business Research (JABR), 32(6), 1723-1736.
Kjosevski, J., & Petkovski, M. (2017). Non-Performing Loans in Baltic States: Determinants and Macroeconomic Effects. Baltic Journal of Economics, 17(1), 25-44.
Kjosevski, J., Petkovski, M., & Naumovska, E. (2019). Bank-Specific and Macroeconomic Determinants of Non-Performing Loans in the Republic of Macedonia: Comparative Analysis of Enterprise and Household NPLs. Economic Research-Ekonomska Istraživanja, 32(1), 1185-1203.
Koju, L., Koju, R., & Wang, S. (2018). Macroeconomic and Bank-Specific Determinants of Non-Performing Loans: Evidence from Nepalese Banking System. Journal of Central Banking Theory and Practice, 7(3), 111-138.
Mazreku, I., Morina, F., Misiri, V., Spiteri, J. V., & Grima, S. (2018). Determinants of the Level of Non-Performing Loans in Commercial Banks of Transition Countries.
Messai, A. S., & Jouini, F. (2013). Micro and Macro Determinants of Non-Performing Loans. International Journal of Economics and Financial Issues, 3(4), 852-860.
Murthy, U., Kamil, N. M., Mariadas, P. A., & Devi, D. (2017). Factors Influencing Non-Performing Loans in Commercial Banks: The Case of Banks in Selangor. International Journal of Business and Management, 12(2), 246.
Ozili, P. K. (2019). Non-Performing Loans and Financial Development: New Evidence. The Journal of Risk Finance.
Rachman, R. A., Kadarusman, Y. B., Anggriono, K., & Setiadi, R. (2018). Bank-Specific Factors Affecting Non-Performing Loans in Developing Countries: Case Study of Indonesia. The Journal of Asian Finance, Economics and Business (JAFEB), 5(2), 35-42.
Rahman, M. A., Asaduzzaman, M., & Hossin, M. S. (2016). Impact of Financial Ratios on Non-Performing Loans of Publicly Traded Commercial Banks in Bangladesh. International Journal of Financial Research, 8(1), 181.
Rehman, R., Mangla, I. U., & Zhang, J. (2016). Chinese Banking Reforms, An Analysis and Evaluation of Non-Performing Loans (NPL’s).
Sari, S. D., & Purwanto, P. (2014). Non-Performing Loans Analysis in Big Four Indonesia Commercial Banks by Assets Quarterly Period 2005-2013. ISSIT 2014, 1(1), 52-66.
Sartono, A. (2008). Manajemen Keuangan Teori dan Aplikasi. Yogyakarta: BPFE.
Scheurich, J. (2014). Research Method in the Postmodern. London: Routledge.
Setiawan, C., Hasan, T., Hassan, M. K., & Mohamad, S. (2017). Non-Performing Loans and Bank Efficiency of Conventional and Islamic Banks in the Organization of Islamic Cooperation (OIC) Countries. Journal of Islamic Economics, Banking and Finance, 113(6223), 1-26.
Tanaskovi?, S., & Jandri?, M. (2015). Macroeconomic and Institutional Determinants of Non-Performing Loans. Journal of Central Banking Theory and Practice, 4(1), 47-62.
Zeng, S. (2012). Bank Non-Performing Loans (NPLS): A Dynamic Model and Analysis in China.
Wang, S. J., & Li, J. Z. (2019). Theoretical Research on the Causes of Non-Performing Loans in Banks. School of Economics, Yunnan University.
Authors who publish to JMM17: Jurnal Ilmu Ekonomi Dan Manajemen agree to the following terms:
- Authors transfer the copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access)