| Popis: |
Size of non-performing loans is a matter of concern and a threat to sustainable banking and macroeconomic development in Bangladesh. This study, therefore, explores the factors responsible for non-performing loans in commercial banks especially from bank specific and macroeconomic aspects in Bangladesh. The study has collected secondary data from 44 commercial banks operating in Bangladesh from 1997 to year 2019. The study has developed a linear multiple regression model to identify the significant factors responsible for non performing loans in the banking sector. The study results reveal that from the set of bank-specific aspects such as high volume of lending (advance deposit ratio), profitability in terms of return on assets, capital adequacy relative to risk weighted assets, high liquidity percentage of deposits have contributed significantly to creating non-performing loans in Bangladesh. On the other hand, from the set of macroeconomic aspects such as GDP growth rate, lending interest rate, unemployment rate and asset size of bank relative GDP also have significant contributions to non-performing loans in the country. |
