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- Title
Non-performing loans (NPLs) and non-performance: evidence from South Asian banks.
- Authors
Bhowmik, Probir Kumar; Sarker, Niluthpaul
- Abstract
This paper examines the consequences of banks' performance on bank risk. The paper forms a theoretical model and delivers empirical evidence to identify that banks suffer in performance as the loans become bad. Using panel data from a sample of five (05) South-Asian emerging economies from 2011 to 2019, we have found that the banks are highly influenced by the development of non-performing loans (NPLs). We have primarily used Return on Asset (ROA) followed by Return on Equity (ROE) as a substitution to the performance of the banks and NPL as the proxy of bank risk. Simultaneous regression applying 3sls finds that Non-Performing Loan (NPL) hinders banks' growth, negatively affecting their profitability.
- Subjects
NONPERFORMING loans; BANKING industry; EMERGING industries; PROFITABILITY; RATE of return
- Publication
International Journal of Research in Business & Social Science, 2024, Vol 13, Issue 2, p197
- ISSN
2147-4478
- Publication type
Article
- DOI
10.20525/ijrbs.v13i2.3235