The relationship between macroeconomic variables and non performing loan: evidence from selected ASEAN countries

The relationship between macroeconomic variables and non performing loan: evidence from selected ASEAN countries

High non-performing loans (NPLs) create the problem for the banking sector as financial intermediary and signal of banking crisis. Many attempts have been made to investigate the determinant of NPLs yet the crucial issue has remained unexplained. The motivation of this research paper is to study the...

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Main Author: Noor Azean Azdzila, Zulkifli
Format: Thesis
Language:eng
eng
Published: 2017
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/7552/1/s819535_01.pdf
https://etd.uum.edu.my/7552/2/s819535_02.pdf
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id my-uum-etd.7552
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institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Nayan, Sabri
topic HG Finance
spellingShingle HG Finance
Noor Azean Azdzila, Zulkifli
The relationship between macroeconomic variables and non performing loan: evidence from selected ASEAN countries
description High non-performing loans (NPLs) create the problem for the banking sector as financial intermediary and signal of banking crisis. Many attempts have been made to investigate the determinant of NPLs yet the crucial issue has remained unexplained. The motivation of this research paper is to study the relationship between macroeconomic variables and global financial crisis on NPLs in the Association of Southeast Asian Nations (ASEAN) countries. Using panel data of 6 countries of the ASEAN for 2005-2015, the model of NPL is regressed using Generalized Method of Moment (GMM) method. Based on the empirical finding reveals that the inflation, gross domestic product (GDP) and global financial crisis significantly effect NPL. In the area of policy implications, the policymaker should focus and reengineering the institutions together with these indicators could reduce the probability of NPLs in bank of ASEAN countries.
format Thesis
qualification_name other
qualification_level Master's degree
author Noor Azean Azdzila, Zulkifli
author_facet Noor Azean Azdzila, Zulkifli
author_sort Noor Azean Azdzila, Zulkifli
title The relationship between macroeconomic variables and non performing loan: evidence from selected ASEAN countries
title_short The relationship between macroeconomic variables and non performing loan: evidence from selected ASEAN countries
title_full The relationship between macroeconomic variables and non performing loan: evidence from selected ASEAN countries
title_fullStr The relationship between macroeconomic variables and non performing loan: evidence from selected ASEAN countries
title_full_unstemmed The relationship between macroeconomic variables and non performing loan: evidence from selected ASEAN countries
title_sort relationship between macroeconomic variables and non performing loan: evidence from selected asean countries
granting_institution Universiti Utara Malaysia
granting_department School of Economics, Finance & Banking
publishDate 2017
url https://etd.uum.edu.my/7552/1/s819535_01.pdf
https://etd.uum.edu.my/7552/2/s819535_02.pdf
_version_ 1747828232744337408
spelling my-uum-etd.75522021-05-10T07:54:59Z The relationship between macroeconomic variables and non performing loan: evidence from selected ASEAN countries 2017 Noor Azean Azdzila, Zulkifli Nayan, Sabri School of Economics, Finance & Banking School of Economics, Finance & Banking HG Finance High non-performing loans (NPLs) create the problem for the banking sector as financial intermediary and signal of banking crisis. Many attempts have been made to investigate the determinant of NPLs yet the crucial issue has remained unexplained. The motivation of this research paper is to study the relationship between macroeconomic variables and global financial crisis on NPLs in the Association of Southeast Asian Nations (ASEAN) countries. Using panel data of 6 countries of the ASEAN for 2005-2015, the model of NPL is regressed using Generalized Method of Moment (GMM) method. Based on the empirical finding reveals that the inflation, gross domestic product (GDP) and global financial crisis significantly effect NPL. In the area of policy implications, the policymaker should focus and reengineering the institutions together with these indicators could reduce the probability of NPLs in bank of ASEAN countries. 2017 Thesis https://etd.uum.edu.my/7552/ https://etd.uum.edu.my/7552/1/s819535_01.pdf text eng public https://etd.uum.edu.my/7552/2/s819535_02.pdf text eng public other masters Universiti Utara Malaysia Abid, L., Ouertani, M.N., & Zouari-Ghorbel, S. (2014). Macroeconomic and Bank-Specific Determinants of Household‘s Non-Performing Loans in Tunisia: A Dynamic Panel Data. Procedia Economics and Finance, 13, 58-68. Ağca, Ş., De Nicolò, G., & Detragiache, E. (2013). Banking Sector Reforms and Corporate Leverage in Emerging Markets. Emerging Markets Review, 17, 125- 149. Ahmed Fawad & Bashir Taqadus (2013). 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