The Factors which affect NPL in Taiwan Banking Industry

• Main Authors: Chen, Hui-Yu, 陳慧瑜
• Other Authors: Cheng, Ming-Chang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/30309057411709998399

碩士 === 國立中正大學 === 企業管理研究所 === 101 === This study aims to analyze whether the government policies have an impact on the NPL ratio or not during each period in domestic banks and its influence variables include loans-deposits ratio (DL), debt ratio (DB), bank size (ASSETS), earnings per share (EPS), capital adequacy ratio (BIS) and directors and supervisors shareholding ratio (HOLD). According to bank's ownership structure, we can divided into public banks, privatization banks, holding financing banks and private banks in order to understand the relationship between bank’s ownership structure and NPL ratio. The study period from 1994 to 2008, conclusions are summarized as follows: Every kind of banks can expand the scale of bank assets and reduce the debt ratio to reduce the probability of occurrence in NPL ratio effectively. While in the first financial reform implementation, the bank will not only reduce the loan to increase lending quality but also use its own capital or surplus to write off in order to achieve the purpose of reducing non-performing loan ratio. In terms of the directors and supervisors shareholding, we can find that when government promote the policy to lower NPL ratio, the directors and supervisors will play its supervision responsibilities.