Volume 18, Issue 4, December 2016, Pages 972–989
Jim Hoy Yam1
1 PhD Candidate at Postgraduate School, Economics Doctorate Program, Universitas Pancasila, Jakarta, Indonesia
Original language: English
Copyright © 2016 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study is exploring impact of macroeconomics and bank specifics factor on nonperforming loans (NPLs) and banking sustainability performance (BSP) particularly in financial performance, with Indonesian commercial banking system back ground. The Study period is over the year 2004 to the year 2013. The objective is to perform statistic examining and analyzing to find out the impact of macroeconomic factors which comprise of gross domestic product (GDP); Bank Indonesia interest rate (BI rate); inflation; exchange rate; unemployment. Then bank specific indicators, which comprise of total assets; loan deposit ratio (LDR); capital adequacy ratio (CAR); credit growth. The conclusion of this study is confirmed that macroeconomic and bank specific factors have a significant impact on NPLs and BSP.
Author Keywords: commercial banking, macroeconomics, nonperforming loans, Banks sustainability perfomance.
Jim Hoy Yam1
1 PhD Candidate at Postgraduate School, Economics Doctorate Program, Universitas Pancasila, Jakarta, Indonesia
Original language: English
Copyright © 2016 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This study is exploring impact of macroeconomics and bank specifics factor on nonperforming loans (NPLs) and banking sustainability performance (BSP) particularly in financial performance, with Indonesian commercial banking system back ground. The Study period is over the year 2004 to the year 2013. The objective is to perform statistic examining and analyzing to find out the impact of macroeconomic factors which comprise of gross domestic product (GDP); Bank Indonesia interest rate (BI rate); inflation; exchange rate; unemployment. Then bank specific indicators, which comprise of total assets; loan deposit ratio (LDR); capital adequacy ratio (CAR); credit growth. The conclusion of this study is confirmed that macroeconomic and bank specific factors have a significant impact on NPLs and BSP.
Author Keywords: commercial banking, macroeconomics, nonperforming loans, Banks sustainability perfomance.
How to Cite this Article
Jim Hoy Yam, “Impact of Macroeconomics and Bank Specifics on Nonperforming Loans and Banking Sustainability Performance,” International Journal of Innovation and Applied Studies, vol. 18, no. 4, pp. 972–989, December 2016.
