The causes of Domestic Bank Non-Performance Loan study

• Main Authors: Yi-hsuan Wu, 吳怡萱
• Other Authors: Da-Cheng Chang
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/82831830579450074851

碩士 === 東吳大學 === 經濟學系 === 94 === Since opened establishment of 16 new banks in 1991, 14 financial holding companies have been allowed to set up by June of 2003. The domestic banking has already stepped into the Warring States era.Facing increasingly tough competition and the serious impacts resulted from the breakdown of bubble economy and financial storm of Southeast Asia in 1997,the domestic banking had higher and higher NPL and the default loan rate reached the highest in 2002,and the bank industry face with a new crisis. With higher and higher NPL in domestic banks, the default loan rate reached the highest in 2002,and the bank industry faced a new crisis. In order to serve as a reference for investment planning of investors and depositors, the objective of this research, using the relations linking various financial ratios and NPL, is to analyze the key factors that have significant correlations with NPL ratios of domestically listed commercial banks. This research, aiming at 31 commercial banks, covers a period from 2002 to year-end of 2005.After reference to relative literatures, 17 financial ratios and 4 other ratios were used as independent variables for this study, and the NPL ratio was used as a dependant variable.By using the Co-linearity Analysis combined with Step-wise Regression Method, We choose 8 financial ratios and other ratios, non-accrual loans ratio 、ratio of classified loans to total loans、 ROA、 liquid ratio、loans to deposits 、consumer loan ratio 、branch amounts and government-owned banks, to create a calculated model. In addition, this research attempts to compare the main factor of NPL ratio of government-owned banks with that of private banks, new commercial banks and old commercial banks and the financial holding banking company and the non-financial holding banking company, and certificate them. Results of empirical study were shown as follows: 1.For government-owned banks and private banks, there are great differences in 5 financial ratios and other ratios, non-accrual loans ratio、ROA、 liquid ratio、loans to deposits and the number of branches. 2.For new banks and old banks, there are great differences in 3 financial ratios and other ratios , non-accrual loans ratio 、loans to deposits and the number of branches. 3.For the financial holding banking company and the non- financial holding banking company, there are great differences in 4 financial ratios, non-accrual loans ratio 、ratio of classified loans to total loans 、 ROA and liquid ratio.