Effect Of Non-performing Loans Research Articles

The Effect of Non-Performing Loans and Loan to Deposit Ratio on Profitability with Inflation as a Moderating Variable in Banking Companies Listed on Indonesia Stock Exchange Period 2018-2022

This study was conducted to test and analyze the effect of Non Performing Loan and Loan to Deposit Ratio as independent variables on Profitability as a dependent variable, as well as the ability of inflation to moderate the relationship between the independent variable and the dependent variable. The research method in this study is quantitative research with regression analysis of panel data using Eviews. The object of research in this study is banking companies listed on the Indonesia Stock Exchange for the 2018-2022 period. The sampling technique used purposive sampling and found 175 observations. The results of this study show that Non-Performing Loans have a negative effect on Profitability and Loan to Deposit Ratio has a positive effect on Profitability. Meanwhile, inflation cannot moderate the relationship between Non-Performing Loans and Loan to Deposit Ratio to Profitability.

The Effect of Non-Performing Loans on Sector Profitability in the Turkish Banking Sector

The main purpose of this study is to determine the impact of non-performing loans (NPLs) on profitability of banking industry in Turkiye. In this study, in order to examine the basic indicators of profitability, non-performing receivables and consumer credit cards, non-performing housing and vehicle loans, non-performing consumer loans, consumer loans, loans and credit cards, net profit-loss and non-performing loans were compiled to generate a data set for the period between 2004 and 2018. Due to the different integration levels of the series obtained, models based on the autoregressive distributed lag (ARDL) approach, which is one of the time series regression methods, were established to analyze. Then, the effect of non-performing receivables on the banking sector profitability was examined. The initial findings reveal that the increase in non-performing receivables significantly reduced the profit of the banking sector.

ANALISIS PENGARUH NON PERFORMING LOAN, RETURN ON ASSET, DAN BIAYA OPERASIONAL PENDAPATAN OPERASIONAL TERHADAP PEROLEHAN LABA

The objectives of this study are 1) To find out how the analysis of non-performing loans, return on assets, operating costs and operating income and profit generation in 2019-2021. 2) To find out whether non-performing loans can affect profit generation in 2019-2021. 3) To find out whether return on assets has an effect on profit earning in 2019-2021. 4) To find out whether operating costs and operating income on profit generation in 2019-2021. 5) To find out how the effect of non-performing loans, return on assets, operating costs and operating income on profit generation in 2019-2021. The research method that researchers use in solving problems is quantitative methods. The population in this study are all companies included in Commercial Bank Companies listed on the Indonesia Stock Exchange from 2019 to 2021. the results of this study are Non-performing loans on earnings have a significant effect. This is indicated by t count greater than t table. Return on assets on profit does not have a significant effect. This is indicated by t count smaller than t table. Operating costs of operating income on profitability have a significant influence. This is indicated by t count greater than t table.

Faktor-Faktor Yang Mempengaruhi Financial Sustainability Ratio (FSR)

Perumda BPR Bank Jogja is a corporation of Yogyakarta city that supports and encourages the growth of regional economic development as well as regional capital sources that improve the standard of living and welfare of the community. So that financial sustainability is important related to the sustainability of Perumda BPR Bank Jogja in its financial aspect. This study uses independent variables, namely Non Performing Loan (NPL), Return on Asset (ROA) with dependent variables Financial Sustainability. The purpose of this study is to see the effect of Non-Performing Loan (NPL), Return on Asset (ROA) on Financial Sustainability. This research uses the research object of Perumda BPR Bank Jogja which has a mission to realize public welfare in the financial sector. Data is obtained from financial statements. The results showed that the t test on the Non-Performing Loan (NPL) variable was 0.575 and Return On Asset (ROA) was 0.017. The results of the t-test show a significance value of 0.268. The results can be concluded that Non-Performing Loan (NPL) has no effect while Return On Asset (ROA) has an effect. Based on test F, Non-Performing Loan (NPL) and Return On Asset (ROA) have a significant impact on the Financial Sustainability Ratio (FSR).

The effect of nonperforming loans (NPL) on bank lending behavior in Türkiye

The effect of nonperforming loans (NPL) on bank lending behavior in Türkiye

The Effects of Non-Performing Loans (NPL), Return on Assets (ROA), Capital Adequacy Ratio (CAR) and BI Rate on Credit Distribution to Commercial Banks Listed on the Indonesian Stock Exchange for the 2019-2021 Period

This research aims to determine the effect of the Non Performing Loan (NPL) variable on credit distribution, knowing the influence of the Return on Assets (ROA) variable on credit distribution, knowing the influence of the Capital Adequency Ratio (CAR) variable on credit distribution, knowing the influence of the BI Rate variable on credit distribution, and knowing the influence of the NPL, ROA, CAR and BI Rate variables on credit distribution credit at Commercial Banks listed on the Indonesia Stock Exchange in 2019-2021. The companies used as samples are 25 companies listed on the Indonesia Stock Exchange in 2019-2021. The data analysis technique uses multiple regression analysis. The results of the analysis show that Non Performing Loans (NPL) have a positive and insignificant effect on credit distribution. Return on Assets (ROA) has a positive and significant effect on credit distribution. Capital Education Ratio (CAR) has a negative and insignificant effect on credit distribution. The BI Rate has a negative and insignificant effect on credit distribution.

Effects of non-performing loans on return on equity of selected commercial banks in Nigeria

The study examined the effect of Non-Performing Loans (NPL) on return on equity (ROE) of selected Commercial Banks in Nigeria covering the period 2010 - 2021 with special emphasis on Fidelity Bank, Union Bank and Wema Bank Plc. It specifically determined the effect of non-performing loans (NPL) and Bank Size (SIZE) on the profitable of commercial banks measured by Return on Equity (ROE). The study utilized secondary data obtained from the annual financial report and accounts of the selected commercial banks in Nigeria for the period of study. The data were analyzed using panel least square method of analysis. The results revealed that while non-performing loans have negative outcome on return on equity of the selected commercial banks, Bank Size (SIZE) has a positive impact on return on equity of the selected commercial banks within the period of study. The study concludes that there exists a negative effect of non-performing loans on performance of commercial banks in Nigeria and the effect cannot be underestimated because it poses a fundamental threat to the existence and growth of commercial banks as corporate business entities. Based on the above findings, the study recommends that banks should maintain high credit standards while the apex bank (CBN) and other regulatory agencies should maintain high surveillance on commercial banks’ credit operations. A decrease in level of loan default will lead to decline in non-performing loans, and successively enhance return on equity of affected banks in Nigeria.

Do operational risks and credit risks make banks more aggressive to avoid taxes?

This study aims to analyze the relationship between credit risk and operational risk on tax avoidance aggressiveness in banking companies in Indonesia for the period 2004-2021. The total observations in the study amounted to 271 samples. The testing method in this study uses multiple regression analysis with panel data. In general, the results show that Non-Performing Loans (NPL) is positively related to to Effective Tax Rates (ETR); in this case, an increase in NPL does not make companies more aggressive in tax avoidance. While Business Operating Profitability (BOPO) is negatively related ETR, in this case, an increase in BOPO makes the company more aggressive in tax avoidance. The results show significant differences in the effect of NPL and BOPO on ETR as a proxy for tax avoidance aggressiveness between the models analyzed. Although NPL shows a significant positive relationship with ETR in one of the first models, the relationship is not significant in the other models. Meanwhile, BOPO has an insignificant negative relationship with ETR in the first model but a negative significant relationship in the second model.

The effects of non-performing loans on bank stability and economic performance in Zimbabwe

This study explores the impact of non-performing loans (NPLs) on the Zimbabwean banking industry’s stability and economic performance during the dollarization era. The panel vector autoregressive (PVAR) model was applied using annual data from 2009 to 2017. The findings indicated that short-run NPL shocks negatively impact the risk-adjusted return, while the impact on risk-adjusted capitalization is positive but dies off in the long run. The findings from the paper further show that NPLs have a strong negative and significant effect on loan growth and economic performance in the short run but remain muted in the long run. The study results also show a bi-directional causality between banking industry stability and NPLs. In summary, NPLs affect banking industry stability, loan growth and economic performance in Zimbabwe. A possible implication is the formulation of a sound regulatory framework that curbs the increase in NPLs, promotes stability within the banking industry, and improves economic performance. The practical implication is that banks must get it right the first time regarding bank lending policies. Thus, the study recommends that Zimbabwean banks proactively manage their exposure to non-performing loans by implementing rigorous credit risk assessment processes.

THE EFFECT OF NON-PERFORMING LOANS ON THE PROFITABILITY OF COMMERCIAL BANKS IN SRI LANKA

Sri Lanka commercial banks have remained with persistent challenges in managing non-performing loans that are considered to have effects on banks’ profitability and the government has developed different ways of reducing non-performing loans. The purpose of this study was to find out the effects of nonperforming loans on the profitability of commercial banks in Sri Lanka. The study used commercial banks registered and operational in Sri Lanka at Central Bank Sri Lanka in the year 2018. Profitability calculated by the return on assets is used as a dependent variable and as an independent variable, non-performing loans measured by non-performing loans ratio are used. Capital adequacy, operational efficiency, and liquidity are used as control variables to enhance the validity and accuracy of the tests. The control variables used are part of the CAMEL factors that also influence commercial banks' profitability. The study selected 11 commercial banks covering the period of 2014 to 2018. To analyze and draw conclusions and recommendations, the analysis also used secondary data. Descriptive Statistics, Multiple Linear Regression, and Pearson Correlation were used for data analysis and Stata has been used as statistical software to analyze the collected data. Findings indicated that there is a negative effect of the nonperforming loans ratio on return on assets, confirming that non-performing loans negatively affect the profitability of commercial banks in Sri Lanka. There is a positive and significant relationship between Return on Assets and Capital Adequacy. When considering the relationship between Return on Assets and Liquidity there is a positive insignificant relationship and there is a negative relationship between Return on Assets and Operational Cost Efficiency. This study concluded that the managers of Commercial banks in Sri Lanka have to work hard to enhance the profitability of commercial banks and reduce occurrences of nonperforming loans. This paper, therefore, provides insight to commercial banks, the central bank, and other stakeholders on the effect of nonperforming loans on the profitability of commercial banks in Sri Lanka and provides a basis for further research.

Managerial sentiments, non-performing loans, and banks financial performance: A causal mediation approach

The existing literature on corporate disclosures suggests that managerial sentiments are the outcome of the firm's financial performance. We extend this line of research and examine how managerial sentiments emerge in the banks' annual reports are shaped by non-performing loans (NPLs). We use the causal mediation approach, where managerial sentiments are used as the outcome variable possibly affected directly by NPLs or through the mediation of financial performance. Using a sample of large banks from 16 emerging economies during 2007–2018, our casual mediation model results show that managerial sentiments are mainly affected by NPLs reported in banks' annual reports. In addition, the effect of NPLs on managerial sentiments is also mediated through financial performance; however, the effect is relatively low. Taken together, the managerial sentiments stemming from NPLs are particularly valuable for investors as the presentation of NPLs' direct information is inherently ambiguous and difficult to comprehend.

The Effect of Non-Performing Loans (NPL) to the Bank Profitability During the Covid-19 Pandemic (Case Study of Buku III Bank in Indonesia)

Bank is a financial institution that functions as a liaison between parties who have excess funds and those who need funds. In creating bank health, it is measured by profitability indicators to see the ability to increase profits, measure effectiveness and efficiency in management. Its profitability can be seen from the value of ROA (Return On Assets) and ROE (Return On Equity). The banking industry has problems in bad debtors which can be seen from the value of NPL (Non-Performing Loan) and this is exacerbated by special conditions that have occurred in recent years, namely the Covid-19 pandemic. So it is necessary to see how the effect of non-performing loans on bank profitability during the Covid-19 pandemic and this study conducted a case study on Buku III banks in Indonesia represented by 7 banks that reported financial data from 2019-2021, namely Bank HSBC Indonesia, Bank Tabungan Negara, Bank DBS Indonesia, Bank Permata, Bank Mega, Bank DKI, and Maybank Indonesia. The results show that the results of the analysis using SPSS version 25, partially non-performing loans represented with NPLs have no effect on the profitability of banks represented with ROA and ROE. Meanwhile, the same condition occurs in the results of the analysis test simultaneously or together with non-performing credit variables, namely NPLs, do not affect bank profitability, namely ROA and ROE.

The Effect of Non-Performing Loans, Loan to Deposit Ratios of Operating Expenses and Operating Income On Return on Assets with Net Interest Margin as an Intervening Variable in Banking Companies Listed in Indonesia Stock Exchange Period 2019 -2021

The banking sector is a state financial institution that has an important role in collecting and distributing funds to the public, with the aim of meeting capital and investment needs for fund owners. So this study was conducted for the purpose of knowing the extent of the influence of certain financial ratios such as Non Performing Loan, Loan to Deposit Ratio, operating expenses operating income to Return on assets with Net Interset Margin as an Intervening variable in banking companies listed on the Indonesia Stock Exchange for the period 2019-2021. This research method uses secondary data. The results of this study indicate that to Non-Performing Loan ,Loan Deposit Ratio has no significant effect on Net Interest Margin. Operating expenses operating income has a significant effect on Net Interest Margin . Net interest Margin has an effect on Return on assets, while Non Performing Loan ,Loan to Deposit Ratio, operating expenses operating income, has an effect and significant on Return on assets while Non Performing Loan ,Loan to Deposit Ratio, operating expenses operating income, is able to mediate Return on assets through Net Interest Margin as an Intervening variable listed on the IDX for the period 2019-2021.

KINERJA KEUNGAN LEMBAGA PERKREDITAN RAKYAT SEBELUM PANDEMI COVID 19

Financial performance is important because it shows the ability of the LPD to generate profits in a period that can be used as a basis for future decision making and evaluating what has been achieved. This research was conducted with the aim of knowing the effect of non-performing loans, savings growth, deposit growth, credit growth, asset growth and operating income operating expenses on financial performance. The population in this study was conducted at the Village Credit Institution in Badung Regency from 2018 to 2019. The sample determination method used was purposive sampling, so that a total sample of 214 LPDs was obtained. The analysis technique used is multiple linear regression analysis. The results of this study indicate that non-performing loans, savings growth, deposit growth, and asset growth have no effect on financial performance, while credit growth has a positive effect on financial performance and operating expenses for operating income have a negative effect on financial performance. Further researchers can conduct research again on LPDs in Bali and add other variables such as the capital adequacy ratio.

Influence Of Third Party Funds on Credit Distribution

The purpose of this research is to identify the influence of Third-Party Funds, Non-Performing Loans (NPL), and Return on Assets on Credit Distribution. As well as the role of ROA which becomes mediation in PT. XYZ. This study uses samples in the form of publication balance sheet reports from PT. XYZ in the period 2019-2021. This research is a quantitative research using SEM PLS techniques through the help of smart pls 3.0 software. The results of the study found that DPK significantly affects PK, with a statistical T value of 6,556 > 1.96 and the original sample of -0.773. The absence of influence of NPL on PK due to its statistical T value of 0.868 < 1.96 and the original sample of -0.146 has a negative relationship to credit distribution. ROA has no direct influence on PK with a statistical T value of 0.006 < 1.96 and the original sample of -0.002 has a negative relationship meaning to PK. DPK had a significant negative influence on ROA with a statistical T value of 2,966 > 1.96 and the original sample of -0.657 having a negative relationship direction. There is no effect of NPL on ROA with a Statistical T value of 0.205 < 1.96 and the original sample of 0.056 has a positive relationship to ROA. NPL has no influence over PK through ROA mediation with its Statistical T value of 0.001<1.96.

Effect of Non-Performing Loans on the Profitability of Universal Banks: A Time Series Analysis of the Ghanaian Banking Industry

The primary purpose of this research is to examine the effect of Non-Performing Loans (NPLs) on the profitability of universal banks in Ghana. The study is focused on the effect of non-performing loans on return on assets and return on equity of universal banks in Ghana. The study uses quarterly time series data collected by Bank of Ghana on all universal banks operating in the banking sector for the period 2007 - 2018. The multiple regression technique is used to analyse the models developed. The study reveals that non-performing loans have a significant negative effect on return on equity of universal banks in Ghana. The study also reveals a significant negative relationship between non-performing loans ratio and return on asset. The study recommends an improvement in the profitability of universal banks by reducing non-performing loans in individual banks. Universal banks must improve their loan monitoring strategies and manage their loan risk exposure to customers. The study recommends an improvement of the regulatory system of the central bank. Appropriate guidelines must be instituted by the central bank to prevent universal banks from advancing loans to customers with high credit risk. Keywords: non-performing loans, banks profitability, time series, universal banks DOI: 10.7176/RJFA/13-2-03 Publication date: January 31 st 2022

THE EFFECT OF NON PERFORMING LOAN, CAPITAL ADEQUACY RATIO AND INCOME SMOOTHING ON LOAN LOSS PROVISION WITH RESTRUCTURING POLICY AS MODERATE VARIABLES

This study wants to examine the effect of NPL on LLP, CAR on LLP, EBTP on LLP moderated by restructuring policies before and after the Covid-19 pandemic. Of these three variables have similarities that have a direct or indirect impact on the performance and capacity of bank debtors. This impact has the potential to disrupt banking performance, which turns out to be changing and disrupts financial system stability which has an impact on Indonesia's economic growth due to the Covid-19 pandemic. This study uses secondary data, the sample selection method used in this study is purposive sampling method with a sample of 55 companies and 1100 observation data. This type of research is quantitative research, data analysis using multiple linear regression and group moderation test. These findings indicate that the NPL and income smoothing variable has a significant positive effect on LLP. From the results of the study, it can be concluded that banks in Indonesia increase LLP when the NPL increases as an effort to mitigate the risk of loss.CAR has an insignificant negative effect on LLP which indicates the absence of capital management. The results of the EBTP and LLP tests have a significant positive effect, it can be concluded that there is an indication of income smoothing (IS) activity in conventional banking in Indonesia. Meanwhile, policy restructuring is not able to moderate the relationship between NPL, CAR, Income Smoothing and LLP.Keywords: NPL, CAR, Income Smoothing, LLP, Restructuring Policy

Faktor - Faktor yang Mempengaruhi Kinerja Keuangan Bank Perkreditan Rakyat

This study aims to examine the effect of the Non Performing Loan (NPL), Loan to Deposit Ratio (LDR) and Operational Efficiency Ratio (BOPO) variables on the financial performance of BPRs as proxied by ROA. The population in this study were all BPRs in Badung Regency which were registered with the Financial Services Authority (OJK) during the 2016-2018 period. Determination of the sample using purposive sampling method and obtained as many as 49 rural banks with a total of 147 observations. The analysis technique used is multiple linear regression analysis techniques. The results of this study indicate that the NPL and LDR variables have no effect on financial performance, while OEOI has a negative effect on financial performance. This research can add information and knowledge about the effect of NPL, LDR, OEOI on BPR financial performance as proxied by ROA.
 Keywords: ROA; NPL; LDR; BOPO.

Effect Of Firms Attributes On Non-Performing Loans Of Listed Deposit Money Banks In Nigeria

This study investigates the effect of firm’s attributes on non-performing loans of listed deposit money banks in Nigeria. Firm attributes was proxied by (firms size, liquidity and capital adequacy) while non-performing loans was proxied by (the ratio of non-performing loans to total loan). 2010-2019 were the period under review. The study adopts the ex-post-facto research design. Annual data used in the study were sourced from the fact books of the Nigerian stock exchange and the financial statement of the banks. Descriptive statistics, correlation matrix and the ordinary least square (OLS) multiple regression techniques were the main statistical tools used in the analysis of data. Additionally, the study conducted hausman test to choose between the fixed and random effect model which will be acceptable. The anticipated income theory was relied on as it provides the most useful theoretical explanation for the study. The result of the regression reveals that, firm size and liquidity has no significant effect of non-performing loan, while capital adequacy has significant effect on non-performing loans. Based on the findings, the study concludes that the CBN should raise capital adequacy ratio from10% since increasing CAR reduces NPLs base on the findings of this study. Banks should also sure up their capital based because it serve as a buffer and it will enables them absorb the challenges that may arise from the volume of non-performing loan they may encounter..

Pengaruh Non-Performing Loan (NPL) dan Loan to Deposit Ratio (LDR) terhadap Return on Asset (ROA) dengan Net Interest Margin (NIM) sebagai Variabel Mediasi pada Bank BUMN yang Terdaftar di BEI

<span>The financial performance of a bank can be measured through ROA. Bank Indonesia as a supervisory and supervisory institution prioritizes greater profitability, namely the Return on Asset (ROA) of a bank, so banks need to know what factors can affect the ROA of a bank. This study was conducted to analyze the effect of Non Performing Loans (NPL) and Loan to Deposit Ratio (LDR) on Return on Assets (ROA) with Net Interest Margin (NIM) as a mediating variable. The sample of this research consists of Bank Mandiri, Bank BNI, Bank BRI, and Bank BTN for the period 2015-2019. The research methods used include descriptive statistical analysis, outer model analysis, and inner model analysis. The results of this study indicate that NPL does not affect NIM, while LDR has a significant effect on NIM. Furthermore, NPL has a significant effect on ROA, while LDR does not affect ROA. This study also proves that NIM has a significant effect on ROA, but NIM does not mediate the effect of NPL on ROA, and NIM can mediate the effect of </span><span>LDR on ROA.</span>