Research on the Influencing Factors of Non-Performing Loans

• Main Authors: FU, SHAO-HUA, 符紹樺
• Other Authors: FEI, WU-CHEN
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/m5253c

碩士 === 國防大學 === 資源管理及決策研究所 === 107 === This paper mainly discussed the association study on impact factors of Non-Performing Loans of domestic banks. By experiencing the 2-stage financial reforms from 2001 to 2003 and from 2004 to 2008, the Taiwanese financial institutions reduced the Non-Performing Loans ratio from 8.16% to 1.52%, which greatly reformed the financial systems of banks. During the period of reform, the banks could go through the worldwide financial crisis from 2007 to 2008 and the following impacts, which demonstrated the effects of bank system adjustment in financial reform policies. Among the 2 stages, the powerfully controlled Non-Performing Loans ratio of the focus of the financial reform at the first stage greatly affected the banking business, which improved the international credits of domestic banks and strengthened the financial stability, having the far-reaching impact on banking industry. Hence, the important study motivation of this paper is to analyze Non-Performing Loans and the impact factors. Covering the period from 2004 to 2018 and taking the quarterly data of 13 Taiwanese banks as the study subjects, this study used the panel regression model to discuss the relevance among impact factors of Non-Performing Loans. From the study results, during the period of sample study, loan growth rate, NPL coverage ratio, return on net worth and loan-deposit ratio would significantly affect the Non-Performing Loans ratio. In case of the business cycle of overall context, overall economic factors, consumers price indexed and unemployment rate would also significantly affect the Non-Performing Loans ratio. When interactions were further used to analyze the difference between state-owned banks and private banks, the feature that the Loan-to-Deposit Ratio of state-owned banks in indexes of sound operation were positive and significant was highlighted, which shows that the factor of “Loan-to-Deposit Ratio ” is an important consideration to measure Non-Performing Loans of banks. Banks should properly control the absorption of deposits and loans, so that both deposit and loan holding current assets balance to reduce the excess ratio to adjust the direction of their own operating lending. In particular, loan is a necessary business for banks, and good regulation and control of Non-Performing Loans can guarantee the value of bank assets. Keywords: Non-Performing Loans, panel data regression model, loan-to -deposit ratio