The Impact of Bank Specific Factors and Macroeconomic on Non-Performing Loans in Banks across ASEAN Countries

The COVID-19 pandemic has caused significant global economic disruptions, particularly increasing non-performing loans (NPLs) in the banking sector. This study examines the impact of bank specific factors and macroeconomics on NPLs in banks across ASEAN countries. Panel data from 39 publicly listed banks over the period 2010–2024 were examined using the Generalized Method of Moments (GMM) and system GMM approach. The results indicate that lagged NPLs, return on equity, total assets, credit growth, GDP growth, and lending interest rates significantly influence NPLs, while the Tier 1 capital ratio, non-interest income, and unemployment rate show no significant effect. This study provides important implications for bank management and policymakers in enhancing credit risk management and strengthening banking supervision within the ASEAN region.

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Publication Details

Journal
Risk and Decision Analysis
Published
2025-11-27
DOI
https://doi.org/10.1177/15697371251399360
Primary Topic
Banking stability, regulation, efficiency
Type
article
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article

The Impact of Bank Specific Factors and Macroeconomic on Non-Performing Loans in Banks across ASEAN Countries

Imam Wahyudi, Muhammad Rizki
Risk and Decision Analysis
Banking stability, regulation, efficiency
article

The Impact of Bank Specific Factors and Macroeconomic on Non-Performing Loans in Banks across ASEAN Countries

Imam Wahyudi, Muhammad Rizki
article en

Abstract

The COVID-19 pandemic has caused significant global economic disruptions, particularly increasing non-performing loans (NPLs) in the banking sector. This study examines the impact of bank specific factors and macroeconomics on NPLs in banks across ASEAN countries. Panel data from 39 publicly listed banks over the period 2010–2024 were examined using the Generalized Method of Moments (GMM) and system GMM approach. The results indicate that lagged NPLs, return on equity, total assets, credit growth, GDP growth, and lending interest rates significantly influence NPLs, while the Tier 1 capital ratio, non-interest income, and unemployment rate show no significant effect. This study provides important implications for bank management and policymakers in enhancing credit risk management and strengthening banking supervision within the ASEAN region.

Risk and Decision Analysis
University of Indonesia (ID)
Openalex Percentile: Top 54%
Banking stability, regulation, efficiency
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The Impact of Bank Specific Factors and Macroeconomic on Non-Performing Loans in Banks across ASEAN Countries — Imam Wahyudi, Muhammad Rizki · Risk and Decision Analysis (2025) | TGRS Research Map | TGRS