Determinants of Non-Performing Loan in South Asia: The Role of Financial Crisis

Rehman, Obaid Ur

doi:10.17015/ejbe.2017.020.07

Cited by 7 publications

(5 citation statements)

References 12 publications

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“…If a variable cannot be affected by shock, then the specific shock can not be known but shock in general (Zuhroh et al, 2017). This result is similar to the finding from a study of Rehman (2017) which shows that the impulse response function confirms the NPL impacted on main bank indicators, one of them is ROE, ETA, and LG. The impacts to bank indicators even bigger than macroeconomic indicators.…”

Section: Impulse Response Function (Irf) Testsupporting

confidence: 83%

The effect of a countercyclical Covid 19 policy on the main financial ratios in Islamic rural banks

Maulana,

Sriyana

2023

J. Eko. Keu. Isl.

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Purpose – This study aims to evaluate the impact of financial services authority's regulation (POJK) regarding the implementation of Covid-19 Countercyclical in Islamic rural banks.Methodology – This study uses time-series data taken from Financial Services Authority (OJK)'s database covering the period from March 2020 - March 2022. Cointegration test show that there is no cointeggration and the variable is not stationary at the same order/degree, therefore the VAR method is used.Findings – This study reveals that POJK have significant impact on CAR, EAQ, and REO ratios and integrated in the long term. Moreover, this study also find that POJK have a causal or reciprocal effect on CAR and REO which occur in one direction. Futhermore, this study portrays that POJK have a positive impact in returning CAR, EAQ and REO ratios to a positive condition at least 10 months since POJK published, except for CR that before pandemic was in a positive condition.Implications – It is necessary for the BPRS to conduct a stress test on the implementation of the said restructuring and its impact on the finances and ratios of the BPRS as the first step for the BPRS to carry out mitigation if things that are not desired by the BPRS occur. Originality – This paper examines the effect of the implementation of POJK Number 11/POJK.03/2020 which is further amended through POJK Number 48/POJK.03/2020 concerning national economic stimulus as a countercyclical policy impact of the spread of coronavirus disease 2019 on the Islamic rural bank soundness level during Covid 19 pandemic.

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Section: Impulse Response Function (Irf) Testsupporting

confidence: 83%

The effect of a countercyclical Covid 19 policy on the main financial ratios in Islamic rural banks

Maulana,

Sriyana

2023

J. Eko. Keu. Isl.

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“…En la región sur de Asia, Rehman (2017), detectó que los bancos experimentaron una gran pérdida de activos y reservas de capital, debido al rápido aumento de los préstamos morosos y, en consecuencia, afectó la actividad económica, durante el periodo de 1999-2015. Evidenció que la calidad de la gestión del banco (medida por la rentabilidad), mantiene una relación inversa con el nivel de morosidad.…”

Section: Análisis De Los Factores En Asia Y áFricaunclassified

Probabilidad de aumento de morosidad bancaria en México, antes y durante la pandemia de COVID-19

Castro

Jiménez

Castro

2022

RECEIN

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Con la crisis Covid-19 se modificaron las variables económicas y microeconómicas de los bancos aumentando el riesgo de incumplimiento de los usuarios de créditos bancarios. Por lo cual este trabajo tiene como objetivo analizar el efecto de los diferentes factores macroeconómicos y microeconómicos en la probabilidad de aumento del índice de morosidad de la banca en México. A través de un modelo de regresión logit y mediante el estadístico Wald se estimó la contribución marginal de cada una de las variables explicativas en la probabilidad de aumento del índice de morosidad para dos periodos: prepandemia y COVID-19. En los resultados obtenidos se lograron tasas de clasificación correctas mayores al 80% y únicamente el desempleo y cuatro variables microeconómicas influyen en la probabilidad de incrementar el índice de morosidad. Estos resultados pueden ser útiles para los banqueros y los supervisores de la banca en el diseño de políticas conducentes a mantener solvente la banca. En este trabajo se propusieron dos nuevas variables explicativas: el tamaño de los créditos vencidos y la proporción de créditos en relación al PIB, mismas que fueron significativas. En el periodo de COVID-19 se encontró que disminuye el efecto marginal de las variables explicativas en la probabilidad de aumentar el nivel de morosidad en comparación al periodo previo.

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“…Previous studies on non-performing loans (NPL) showed that NPL has negative effect on economic growth (see Erdoğdu, 2017;Balgova et al, 2018). Studies on NPL also analyzed factors influenced level of NPL (see Makri et al, 2014;Rehman, 2017;Waqas et al, 2019).…”

Section: R E S E a R C H O B J E C T I V E Smentioning

confidence: 99%

The Effect of Digital Unsecured Loans and DTI Ratio on Risk-Taking Behavior

Pachlevi¹,

Sopacua²

2019

Asia Pr soc sci

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The objective of this study was to examined the effect of digital unsecured loans and DTI ratio on changes in risk-taking behavior of the household sectros. Increasing of P2P lending is clearly unstoppable in Indonesia. Digital unsecured loans success to simplify credit process, because online-based credit aplication. However, these simply process are followed by high-interest rate. Many people apply for credit without considering risk. The convenience of digital unsecured loans making people forget about high annual percentage rate. Finally, occur increase potential bad loans in the household sectros. Collection of data was carried out through experiments 2 x 2 factorial design. The results shows that digital unsecured loans increases risk-taking behavior of household sectors. DTI ratio also can be used as an internal control of household sectors to prevent increased risk-taking behavior

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Determinants of Non-Performing Loan in South Asia: The Role of Financial Crisis

Abstract: The purpose of the study is to recognize the factors influencing non-performing loan in banking system of South Asian region for the period of [1999][2000][2001][2002][2003][2004][2005][2006][2007][2008][2009][2010][2011][2012][2013][2014][2015]

Cited by 7 publications

References 12 publications

The effect of a countercyclical Covid 19 policy on the main financial ratios in Islamic rural banks

The effect of a countercyclical Covid 19 policy on the main financial ratios in Islamic rural banks

Probabilidad de aumento de morosidad bancaria en México, antes y durante la pandemia de COVID-19

The Effect of Digital Unsecured Loans and DTI Ratio on Risk-Taking Behavior

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