The Impact Of Corruption, Country Governance Indicators And Loan Portfolio Concentration On Nonperforming Loans Of Three Selected South Asian Countries

The Impact Of Corruption, Country Governance Indicators And Loan Portfolio Concentration On Nonperforming Loans Of Three Selected South Asian Countries

The 2008 global financial crisis (GFC) has triggered a rise in nonperforming loans (NPLs) of banks around the globe, including the South Asian region. The significant increase in NPLs is worrying as it may undermine banks’ ability to grant credit and support the economic recovery of a country. The i...

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Main Author: Rehman, Abdul
Format: Thesis
Language:eng
eng
eng
Published: 2022
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/11156/1/depositpermission-s902738.pdf
https://etd.uum.edu.my/11156/2/s902738_01.pdf
https://etd.uum.edu.my/11156/3/s902738_02.pdf
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spelling my-uum-etd.111562024-06-10T02:41:57Z The Impact Of Corruption, Country Governance Indicators And Loan Portfolio Concentration On Nonperforming Loans Of Three Selected South Asian Countries 2022 Rehman, Abdul Abdul Adzis, Azira Mohamed Arshad, Shamsul Bahrain College of Business (COB) College of Business HG Finance The 2008 global financial crisis (GFC) has triggered a rise in nonperforming loans (NPLs) of banks around the globe, including the South Asian region. The significant increase in NPLs is worrying as it may undermine banks’ ability to grant credit and support the economic recovery of a country. The increasing trend of NPL rates and limited studies in related literature assessing NPLs in the South Asian region have motivated this study, which examines the external and internal factors that may influence the NPLs. Specifically, this study investigates the impact of control of corruption (COC), country governance (CG), and loan portfolio concentration (LPC) on nonperforming loans (NPLs) in three selected South Asian countries (Pakistan, India, and Bangladesh) for the period 2000-2017. Employing Generalized Method of Moments (GMM) dynamic panel data analysis on a sample of 81 conventional banks, the result reveals that COC has a significant and negative association with NPLs, indicating that weak control of corruption would lead to an increase in NPLs in the sample countries. As for CG, the results indicate a negative and significant relationship, suggesting that better country governance would reduce the NPLs. Using Hirschman-Herfindahl Index (HHI) for LPC, the results also show a significant negative relationship. This implies that an increase in loan portfolio concentration would decrease banks’ NPLs due to better monitoring efficiency and proper screening of loan applications. These findings provide insights to the policymakers in making strategic decisions regarding NPLs with regards to control of corruption, country governance, and loan portfolio concentration indicators. 2022 Thesis https://etd.uum.edu.my/11156/ https://etd.uum.edu.my/11156/1/depositpermission-s902738.pdf text eng staffonly https://etd.uum.edu.my/11156/2/s902738_01.pdf text eng 2025-11-03 staffonly https://etd.uum.edu.my/11156/3/s902738_02.pdf text eng 2025-11-03 staffonly other doctoral Universiti Utara Malaysia
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
eng
advisor Abdul Adzis, Azira
Mohamed Arshad, Shamsul Bahrain
topic HG Finance
spellingShingle HG Finance
Rehman, Abdul
The Impact Of Corruption, Country Governance Indicators And Loan Portfolio Concentration On Nonperforming Loans Of Three Selected South Asian Countries
description The 2008 global financial crisis (GFC) has triggered a rise in nonperforming loans (NPLs) of banks around the globe, including the South Asian region. The significant increase in NPLs is worrying as it may undermine banks’ ability to grant credit and support the economic recovery of a country. The increasing trend of NPL rates and limited studies in related literature assessing NPLs in the South Asian region have motivated this study, which examines the external and internal factors that may influence the NPLs. Specifically, this study investigates the impact of control of corruption (COC), country governance (CG), and loan portfolio concentration (LPC) on nonperforming loans (NPLs) in three selected South Asian countries (Pakistan, India, and Bangladesh) for the period 2000-2017. Employing Generalized Method of Moments (GMM) dynamic panel data analysis on a sample of 81 conventional banks, the result reveals that COC has a significant and negative association with NPLs, indicating that weak control of corruption would lead to an increase in NPLs in the sample countries. As for CG, the results indicate a negative and significant relationship, suggesting that better country governance would reduce the NPLs. Using Hirschman-Herfindahl Index (HHI) for LPC, the results also show a significant negative relationship. This implies that an increase in loan portfolio concentration would decrease banks’ NPLs due to better monitoring efficiency and proper screening of loan applications. These findings provide insights to the policymakers in making strategic decisions regarding NPLs with regards to control of corruption, country governance, and loan portfolio concentration indicators.
format Thesis
qualification_name other
qualification_level Doctorate
author Rehman, Abdul
author_facet Rehman, Abdul
author_sort Rehman, Abdul
title The Impact Of Corruption, Country Governance Indicators And Loan Portfolio Concentration On Nonperforming Loans Of Three Selected South Asian Countries
title_short The Impact Of Corruption, Country Governance Indicators And Loan Portfolio Concentration On Nonperforming Loans Of Three Selected South Asian Countries
title_full The Impact Of Corruption, Country Governance Indicators And Loan Portfolio Concentration On Nonperforming Loans Of Three Selected South Asian Countries
title_fullStr The Impact Of Corruption, Country Governance Indicators And Loan Portfolio Concentration On Nonperforming Loans Of Three Selected South Asian Countries
title_full_unstemmed The Impact Of Corruption, Country Governance Indicators And Loan Portfolio Concentration On Nonperforming Loans Of Three Selected South Asian Countries
title_sort impact of corruption, country governance indicators and loan portfolio concentration on nonperforming loans of three selected south asian countries
granting_institution Universiti Utara Malaysia
granting_department College of Business (COB)
publishDate 2022
url https://etd.uum.edu.my/11156/1/depositpermission-s902738.pdf
https://etd.uum.edu.my/11156/2/s902738_01.pdf
https://etd.uum.edu.my/11156/3/s902738_02.pdf
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