The Study of Factors for Credit Cooperative Non-Performing Mortgage Loan

• Main Authors: Kuo-Hsien Chiang, 江國賢
• Other Authors: Timothy Tingson Wang
• Format: Others
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/sxu2z7

碩士 === 國立東華大學 === 國際企業學系 === 100 === Loan interest is one of main incomes of financial institution, but overdue loan sets off their revenue. The overdue loan has more adverse impact to rural and small financial institutions than large one, as their business model, target customers differ from bank, and business scope is limited by relevant laws. This research investigated and forecasted the main causes for overdue loans of the studied domestic credit cooperative bank. We sampled house loans of year 2006 with total 165 samples which consist of 110 normal cases and 55 overdue loan cases. By means of Logistic regression model, this research analyzes ten variables, including gender, age, education, career, years of working , annual income, ratio of monthly payable capital and interest account for monthly income, location of collateral, loan amount, load interest. The empirical results illustrate that five variables, such as education, career, annual income, loan interest and ratio of monthly payable capital and interest account for monthly income, are significantly related to overdue loans. Three of five variables, including career, loan interest and ratio of monthly payable capital and interest account for monthly income, have positive correlation to overdue loans, and the other two variables, education and annual income, have negative correlation to overdue load. In addition, this research applied Logistic regression analysis to model the default event and found the accuracy of this forecast modeling reaching 84.2%. This result can be a guidance of rural financial institutions while assess loaning and reduces the potential of loan default, and lower down the ratio of overdue loan. On the other hand, this research aims to provide reference for improving the quality of loan and performance of management for Taiwan’s domestic credit cooperative banks.