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Title : Bank specific and macroeconomic determinants of non-performing loan: a case of commercial banks in Nepal Material Type: printed text Authors: Shishir Giri, Author Publication Date: 2016 Pagination: 82p. Size: GRP/Thesis Accompanying material: 4/B General note: Including bibliography
Languages : English Descriptors: Economic policy
Macroeconomics
Non-performing loanKeywords: 'macroeconomics economic policy banks banks and banking nepal' Class number: 332.632 Bank specific and macroeconomic determinants of non-performing loan: a case of commercial banks in Nepal [printed text] / Shishir Giri, Author . - 2016 . - 82p. ; GRP/Thesis + 4/B.
Including bibliography
Languages : English
Descriptors: Economic policy
Macroeconomics
Non-performing loanKeywords: 'macroeconomics economic policy banks banks and banking nepal' Class number: 332.632 Hold
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Barcode Call number Media type Location Section Status 138/D 332.632 GIR Thesis/Dissertation Uniglobe Library Social Sciences Available
Title : Bank specific and macroeconomic determinants of non-performing loans evidence from commercial banks of Nepal Material Type: printed text Authors: Garima Dawadi, Author Publication Date: 2015 Pagination: 72p. Size: GRP/Thesis Accompanying material: 5/B General note: Including bibilography Languages : English Descriptors: Banks
Banks and banking
Macroeconomics
Non-performing loanKeywords: 'macroeconomics economic policy banks banks and banking nepal' Class number: 332.632 Abstract: Loans have a vital contribution towards development of economy. However, its nonpayment also leads to incidence of huge loss on banks in particular and country in general. Hence, this study was conducted to examine both bank specific and macroeconomic determinants of NPLs of commercial banks in Nepal.
A total of 17 commercial banks are chosen to represent the Nepalese commercial banks during period form 2004/2005 to 2013/14. The independent variables for this research are return on assets, return on equity, capital adequacy ratio, size, interest gross domestic product, inflation rate.For analysis of data descriptive statistics, correlation, and regression analysis among the dependent and independent is used.This study is based on secondary data and data are collected from the annual reports of the individual bank, Nepal Rastra Bank BFIs statistics, and audited balance sheet of respective bank, published journals and books.
Pearson Correlation Analysis shows that non-performing loan is positively correlated with interest rate however there is negative relationship between NPL and inflation. Similarly, the highest positive correlation is between size and NPL at 1 percent significance level.NPL has positive relation with other variable such as interest, CAR, but negative relationship between GDP and Inflation.
The linear regression model is used to examine the relationship between dependent variable, non-performing loan, and independent variables, firm specific and macro-economic. Among the firm specific variables, size and capital adequacy ratios have significant relationship with non-performing loan. However, the macroeconomic variables, gross domestic product and inflation do not have significant relation with non-performing loan.
The study shows that capital adequacy ratio is negatively related with non-performing loan and the relationship is significant, which also supports the priori hypothesis. The negative relationship with non-performing loans indicates that increase in capital adequacy ratio leads to decrease in non-performing loan. Similarly, bank size has positive significant relation with non-performing loan which is however against the priori hypothesis. The positive relation with non-performing loan indicates that increase in bank size leads to increase to non-performing loans.
Thus, of the variables considered, capital adequacy ratio and bank size have higher explanatory power than other variables as indicated by significant relationship. Other variables like return on assets, return on equity, interest, gross domestic product and inflation are not significant with non-performing loans.Bank specific and macroeconomic determinants of non-performing loans evidence from commercial banks of Nepal [printed text] / Garima Dawadi, Author . - 2015 . - 72p. ; GRP/Thesis + 5/B.
Including bibilography
Languages : English
Descriptors: Banks
Banks and banking
Macroeconomics
Non-performing loanKeywords: 'macroeconomics economic policy banks banks and banking nepal' Class number: 332.632 Abstract: Loans have a vital contribution towards development of economy. However, its nonpayment also leads to incidence of huge loss on banks in particular and country in general. Hence, this study was conducted to examine both bank specific and macroeconomic determinants of NPLs of commercial banks in Nepal.
A total of 17 commercial banks are chosen to represent the Nepalese commercial banks during period form 2004/2005 to 2013/14. The independent variables for this research are return on assets, return on equity, capital adequacy ratio, size, interest gross domestic product, inflation rate.For analysis of data descriptive statistics, correlation, and regression analysis among the dependent and independent is used.This study is based on secondary data and data are collected from the annual reports of the individual bank, Nepal Rastra Bank BFIs statistics, and audited balance sheet of respective bank, published journals and books.
Pearson Correlation Analysis shows that non-performing loan is positively correlated with interest rate however there is negative relationship between NPL and inflation. Similarly, the highest positive correlation is between size and NPL at 1 percent significance level.NPL has positive relation with other variable such as interest, CAR, but negative relationship between GDP and Inflation.
The linear regression model is used to examine the relationship between dependent variable, non-performing loan, and independent variables, firm specific and macro-economic. Among the firm specific variables, size and capital adequacy ratios have significant relationship with non-performing loan. However, the macroeconomic variables, gross domestic product and inflation do not have significant relation with non-performing loan.
The study shows that capital adequacy ratio is negatively related with non-performing loan and the relationship is significant, which also supports the priori hypothesis. The negative relationship with non-performing loans indicates that increase in capital adequacy ratio leads to decrease in non-performing loan. Similarly, bank size has positive significant relation with non-performing loan which is however against the priori hypothesis. The positive relation with non-performing loan indicates that increase in bank size leads to increase to non-performing loans.
Thus, of the variables considered, capital adequacy ratio and bank size have higher explanatory power than other variables as indicated by significant relationship. Other variables like return on assets, return on equity, interest, gross domestic product and inflation are not significant with non-performing loans.Hold
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Barcode Call number Media type Location Section Status 126/D 332.632 DAW Thesis/Dissertation Uniglobe Library Social Sciences Available
Title : Determinants of non-performing loan and cost efficiency of Nepalese commercial banks Material Type: printed text Authors: Nikita Khanal, Author Publication Date: 2017 Pagination: 97p. Size: GRP/Thesis Accompanying material: 11/B Languages : English Descriptors: Non-performing loan Keywords: 'bank loans banks banks and banking commercial banks nepal loans' Class number: 332.175 Abstract: The non-performing loans (NPL) of financial institutions are considered as a significant issue in the context of Nepal for last few decades. Nepal Rastra Bank (NRB) has made amendment to the provision related to classification of loans of banks and financial institutions (BFIs). The central bank instructed ‘A’,’B’ and ’C’ class banks to classify their non-performing loans(NPL) into five different types i.e. Pass, Sub-standard, Doubtful, and Loss categories, depending on duration of delay in debt servicing . Now, new categoryhave to add i.e. watch list. Non-performing loan is a loan on which the borrower is not making interest payments or repaying any principal.
This study attempts to examine the determinants of non-performing loan and cost efficiency in Nepalese commercial banks. The study is based on secondary data of 16 commercial banks with 128 observations for the period of 2008/09 to 2015/16. Data and information have been collected from Nepal Stock Exchange, Security Exchange Board of Nepal, Banking and Financial Statistics of NRB and annual reports of the selected commercial banks. The research design adopted in this study is descriptive and causal comparative research design as it deals with the macro-economic variables and bank specific variables with non-performing loan and cost efficiency of Nepalese commercial banks.
The result shows that the average non-performing loan ratio is highest for NBBL (4.308 percent) and lowest for SCBL (0.573 percent).The average cost efficiency is highest for PCBL (11.139 percent) and lowest for NIBL (1.179 percent).The average return on equity is highest for NABIL (29.07 percent) and lowest for SUBL (8.094 percent).SBL has highest average loan to deposit ratio (83.414 percent) and SCBL has lowest average loan to deposit ratio (50.51 percent).The average credit growthis highest for NMB (54.891 percent) and lowest for SCBL (12.490 percent). The averageloan to total assets ratio shows that loan to total assets ratio is highest for SBI (1.968 percent) and lowest for NBBL (1.934 percent).
The descriptive statistics for selected commercial bank shows that the average non-performing loan ratio is 1.567 percent, average cost efficiency is 2.799 percent,average return on equityis 18.288 percent,average loan to deposit is 76.159 percent, average gross domestic product growth rate is 3.912 percent, average inflation is 9.112 percent, average credit growth is 24.143 percent and average loan to assets ratio is 90.713 percent.
The correlation matrix shows that return on equity is negatively correlated to non-performing loan ratio. However,loan to deposit and gross domestic product growth rate are positively related to non-performing loan ratio. Similarly, inflation has positive relationship with non-performing loan ratio. Additionally, credit growth and loan to assets ratio has positive relationship with non-performing loan ratio. The correlation result also shows that return on equity and gross domestic product growth rate are positively related to cost efficiency. On the other hand, loan to deposit and credit growth is negatively related to cost efficiency. Additionally, inflation and loan to assets ratio has positive relationship with cost efficiency.
The regression result shows that return on equity has negative and insignificant impact on non-performing loan ratio. It indicates that increase in return on equity leads to decrease in non-performing loan ratio. Moreover, loan to deposit has positive and significant impact on non-performing loan ratio. It indicates that higher the loan to deposit, higher would be the non-performing loan ratio. Likewise, gross domestic product growth rate has positive impact on non-performing loan ratio. It reveals that higher the gross domestic product growth rate, higher would be the non-performing loan ratio. Similarly, inflation has positive impact on non-performing loan ratio. The result states that higher the inflation, higher would be the non-performing loan ratio.Additionally, credit growth has negative and significant impact on non-performing loan ratio. It reveals that higher the credit growth, lower would be the non-performing loan ratio. Likewise, loan to assets ratio has negative and significant impact on non-performing loan ratio. The result denotes that higher the loan to assets ratio, lower would be the non-performing loan ratio.
The result indicated that there is positive and significant impact of return on equity on cost efficiency. It indicates that higher the return on equity, lower would be the cost efficiency. Moreover, loan to deposit has negative and significant on cost efficiency. It indicates that higher the loan to deposit, lower would be the cost efficiency. Additionally, gross domestic product growth rate has positive impact on cost efficiency. It reveals that highergross domestic product growth rate leads to higher cost efficiency. On the other hand, inflation has positive and insignificant impact on cost efficiency. The result states that higher the inflation, higher would be the cost efficiency. Additionally, credit growth hasnegative impact on cost efficiency. It reveals that higher the credit growth, lower would be the cost efficiency. However, loan to assets ratio has positive and significant impact on cost efficiency. The result reveals that higher the loan to assets ratio, higher would be the cost efficiency.
Determinants of non-performing loan and cost efficiency of Nepalese commercial banks [printed text] / Nikita Khanal, Author . - 2017 . - 97p. ; GRP/Thesis + 11/B.
Languages : English
Descriptors: Non-performing loan Keywords: 'bank loans banks banks and banking commercial banks nepal loans' Class number: 332.175 Abstract: The non-performing loans (NPL) of financial institutions are considered as a significant issue in the context of Nepal for last few decades. Nepal Rastra Bank (NRB) has made amendment to the provision related to classification of loans of banks and financial institutions (BFIs). The central bank instructed ‘A’,’B’ and ’C’ class banks to classify their non-performing loans(NPL) into five different types i.e. Pass, Sub-standard, Doubtful, and Loss categories, depending on duration of delay in debt servicing . Now, new categoryhave to add i.e. watch list. Non-performing loan is a loan on which the borrower is not making interest payments or repaying any principal.
This study attempts to examine the determinants of non-performing loan and cost efficiency in Nepalese commercial banks. The study is based on secondary data of 16 commercial banks with 128 observations for the period of 2008/09 to 2015/16. Data and information have been collected from Nepal Stock Exchange, Security Exchange Board of Nepal, Banking and Financial Statistics of NRB and annual reports of the selected commercial banks. The research design adopted in this study is descriptive and causal comparative research design as it deals with the macro-economic variables and bank specific variables with non-performing loan and cost efficiency of Nepalese commercial banks.
The result shows that the average non-performing loan ratio is highest for NBBL (4.308 percent) and lowest for SCBL (0.573 percent).The average cost efficiency is highest for PCBL (11.139 percent) and lowest for NIBL (1.179 percent).The average return on equity is highest for NABIL (29.07 percent) and lowest for SUBL (8.094 percent).SBL has highest average loan to deposit ratio (83.414 percent) and SCBL has lowest average loan to deposit ratio (50.51 percent).The average credit growthis highest for NMB (54.891 percent) and lowest for SCBL (12.490 percent). The averageloan to total assets ratio shows that loan to total assets ratio is highest for SBI (1.968 percent) and lowest for NBBL (1.934 percent).
The descriptive statistics for selected commercial bank shows that the average non-performing loan ratio is 1.567 percent, average cost efficiency is 2.799 percent,average return on equityis 18.288 percent,average loan to deposit is 76.159 percent, average gross domestic product growth rate is 3.912 percent, average inflation is 9.112 percent, average credit growth is 24.143 percent and average loan to assets ratio is 90.713 percent.
The correlation matrix shows that return on equity is negatively correlated to non-performing loan ratio. However,loan to deposit and gross domestic product growth rate are positively related to non-performing loan ratio. Similarly, inflation has positive relationship with non-performing loan ratio. Additionally, credit growth and loan to assets ratio has positive relationship with non-performing loan ratio. The correlation result also shows that return on equity and gross domestic product growth rate are positively related to cost efficiency. On the other hand, loan to deposit and credit growth is negatively related to cost efficiency. Additionally, inflation and loan to assets ratio has positive relationship with cost efficiency.
The regression result shows that return on equity has negative and insignificant impact on non-performing loan ratio. It indicates that increase in return on equity leads to decrease in non-performing loan ratio. Moreover, loan to deposit has positive and significant impact on non-performing loan ratio. It indicates that higher the loan to deposit, higher would be the non-performing loan ratio. Likewise, gross domestic product growth rate has positive impact on non-performing loan ratio. It reveals that higher the gross domestic product growth rate, higher would be the non-performing loan ratio. Similarly, inflation has positive impact on non-performing loan ratio. The result states that higher the inflation, higher would be the non-performing loan ratio.Additionally, credit growth has negative and significant impact on non-performing loan ratio. It reveals that higher the credit growth, lower would be the non-performing loan ratio. Likewise, loan to assets ratio has negative and significant impact on non-performing loan ratio. The result denotes that higher the loan to assets ratio, lower would be the non-performing loan ratio.
The result indicated that there is positive and significant impact of return on equity on cost efficiency. It indicates that higher the return on equity, lower would be the cost efficiency. Moreover, loan to deposit has negative and significant on cost efficiency. It indicates that higher the loan to deposit, lower would be the cost efficiency. Additionally, gross domestic product growth rate has positive impact on cost efficiency. It reveals that highergross domestic product growth rate leads to higher cost efficiency. On the other hand, inflation has positive and insignificant impact on cost efficiency. The result states that higher the inflation, higher would be the cost efficiency. Additionally, credit growth hasnegative impact on cost efficiency. It reveals that higher the credit growth, lower would be the cost efficiency. However, loan to assets ratio has positive and significant impact on cost efficiency. The result reveals that higher the loan to assets ratio, higher would be the cost efficiency.
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Barcode Call number Media type Location Section Status 401/D 332.175 KHA Thesis/Dissertation Uniglobe Library Social Sciences Available
Title : Determinants of non-performing loan in Nepalese commercial banks Material Type: printed text Authors: Seema Bhattari, Author Publication Date: 2013 Pagination: 113p. Size: GRP/Thesis Accompanying material: 2/B General note: Including bibliography
Languages : English Descriptors: Bank loans
Banks
Banks and banking
Commercial banks
Loans
Nepal
Non-performing loan
Seema BhattaraiKeywords: 'bank loans banks banks and banking commercial banks nepal loans seema bhattarai non-performing' Class number: 332.175 Abstract: The non-performing loans (NPL) of financial institutions are considered as a significant issue in the context of Nepal for last few decades. The immediate consequence of large amount of NPLs in the banking system is bank failure. Non-performing loans are one of the main reasons that cause insolvency of the financial institutions and ultimately hurt the whole economy. Studies show that the failure of banks in Nepal was also the result of the high non-performing assets due to and the result of lending without differentiating markets, products and borrowers’ credit worthiness and excessive loan exposure to real estate. However, there is not any study regarding the factors affecting non-performing loan in Nepal. Finding the factors affecting NPL covering both micro (banks specific) and macroeconomic variables may help to reduce the NPL and improve the profitability of each commercial banks and may also help for improvement of the economy as a whole.
In this context the study aims to identify the impact of macroeconomic variables (GDP, Inflation, and Real Effective Exchange Rate) and bank specific variables (size, change in loan, real lending rate of interest, and share of loan to total assets) on the non-performing loan of the commercial banks in Nepal. It further aims to identify the perception of bankers regarding the impact of bank specific variables and macroeconomic variables on non-performing loan in Nepalese Commercial Banks.
The study is conducted with primary as well as secondary sources. The secondary data are collected for 26 commercial banks covering the period of 2002-2012 with 227 observations. The primary data are collected from 140 bankers of ten top commercial banks of Nepal. It followed both qualitative and quantitative approach to analyze the findings of the study.
It is found that the government owned banks have the highest non-performing loan in all the years while the standard chartered bank has the lowest non-performing loan. However, newly established banks also have low non-performing loan. In terms of size, the government owned banks occupy the largest share while the share is low in the newly established banks like Citizens bank, Grand bank and Kist bank.
Macroeconomic variables such as the real effective exchange rate have significantly negative impact on non-performing loan which is inconsistent with the findings of previous studies. The impact of GDP growth rate is found to be insignificant in this study. One year lagged inflation rate has significant positive impact on non-performing loan. The banks which charge relatively higher real interest rate have higher non-performing loan, which is consistent with the findings of previous studies. If the bank is government owned bank the non-performing loan would be higher than that of the private owned banks since ownership dummy has positive coefficient and significant at one percent level. As well, more lending in the previous years and current year reduces the non-performing loan since the coefficient of change in loan in current and previous years have negative coefficient and significant at one percent level.
The bankers of Nepalese commercial bank perceive that energy crisis; lack of timely budgetary expenditure by the government and instable political environment increases the non-performing loan. Similarly bankers also perceive that borrowers honesty in disclosing the information, better monitoring and evaluation of the loan, increase in GDP growth rate have significantly negative impact on non-performing loan. However, the banker’s perception shows that the macroeconomic variables like unemployment rate, inflation rate, exchange rate and interest rate are not much important variables to influence non-performing loan of the commercial banks of Nepal. These findings of the study may add the literature on the area of determinants of non-performing loan within Nepalese Commercial banks in Nepal.
Determinants of non-performing loan in Nepalese commercial banks [printed text] / Seema Bhattari, Author . - 2013 . - 113p. ; GRP/Thesis + 2/B.
Including bibliography
Languages : English
Descriptors: Bank loans
Banks
Banks and banking
Commercial banks
Loans
Nepal
Non-performing loan
Seema BhattaraiKeywords: 'bank loans banks banks and banking commercial banks nepal loans seema bhattarai non-performing' Class number: 332.175 Abstract: The non-performing loans (NPL) of financial institutions are considered as a significant issue in the context of Nepal for last few decades. The immediate consequence of large amount of NPLs in the banking system is bank failure. Non-performing loans are one of the main reasons that cause insolvency of the financial institutions and ultimately hurt the whole economy. Studies show that the failure of banks in Nepal was also the result of the high non-performing assets due to and the result of lending without differentiating markets, products and borrowers’ credit worthiness and excessive loan exposure to real estate. However, there is not any study regarding the factors affecting non-performing loan in Nepal. Finding the factors affecting NPL covering both micro (banks specific) and macroeconomic variables may help to reduce the NPL and improve the profitability of each commercial banks and may also help for improvement of the economy as a whole.
In this context the study aims to identify the impact of macroeconomic variables (GDP, Inflation, and Real Effective Exchange Rate) and bank specific variables (size, change in loan, real lending rate of interest, and share of loan to total assets) on the non-performing loan of the commercial banks in Nepal. It further aims to identify the perception of bankers regarding the impact of bank specific variables and macroeconomic variables on non-performing loan in Nepalese Commercial Banks.
The study is conducted with primary as well as secondary sources. The secondary data are collected for 26 commercial banks covering the period of 2002-2012 with 227 observations. The primary data are collected from 140 bankers of ten top commercial banks of Nepal. It followed both qualitative and quantitative approach to analyze the findings of the study.
It is found that the government owned banks have the highest non-performing loan in all the years while the standard chartered bank has the lowest non-performing loan. However, newly established banks also have low non-performing loan. In terms of size, the government owned banks occupy the largest share while the share is low in the newly established banks like Citizens bank, Grand bank and Kist bank.
Macroeconomic variables such as the real effective exchange rate have significantly negative impact on non-performing loan which is inconsistent with the findings of previous studies. The impact of GDP growth rate is found to be insignificant in this study. One year lagged inflation rate has significant positive impact on non-performing loan. The banks which charge relatively higher real interest rate have higher non-performing loan, which is consistent with the findings of previous studies. If the bank is government owned bank the non-performing loan would be higher than that of the private owned banks since ownership dummy has positive coefficient and significant at one percent level. As well, more lending in the previous years and current year reduces the non-performing loan since the coefficient of change in loan in current and previous years have negative coefficient and significant at one percent level.
The bankers of Nepalese commercial bank perceive that energy crisis; lack of timely budgetary expenditure by the government and instable political environment increases the non-performing loan. Similarly bankers also perceive that borrowers honesty in disclosing the information, better monitoring and evaluation of the loan, increase in GDP growth rate have significantly negative impact on non-performing loan. However, the banker’s perception shows that the macroeconomic variables like unemployment rate, inflation rate, exchange rate and interest rate are not much important variables to influence non-performing loan of the commercial banks of Nepal. These findings of the study may add the literature on the area of determinants of non-performing loan within Nepalese Commercial banks in Nepal.
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Barcode Call number Media type Location Section Status 14/D 332.175 BHA Thesis/Dissertation Uniglobe Library Social Sciences Available
Title : Impact on non-performing loan on bank profitability: a case of Nepalese commercial banks Material Type: printed text Authors: Ravi Bhandari, Author Publication Date: 2014 Pagination: 71p. Size: GRP/Thesis Accompanying material: 5/B General note: Including bibilography Languages : English Descriptors: Bank loans
Banks
Banks and banking
Loans
Non-performing loanKeywords: 'bank loans banks banks and banking commercial banks nepal loans return on assets return on equality' Class number: 332.175 Impact on non-performing loan on bank profitability: a case of Nepalese commercial banks [printed text] / Ravi Bhandari, Author . - 2014 . - 71p. ; GRP/Thesis + 5/B.
Including bibilography
Languages : English
Descriptors: Bank loans
Banks
Banks and banking
Loans
Non-performing loanKeywords: 'bank loans banks banks and banking commercial banks nepal loans return on assets return on equality' Class number: 332.175 Hold
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Barcode Call number Media type Location Section Status 110/D 332.175 BHA Thesis/Dissertation Uniglobe Library Social Sciences Available
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