Determinants of NPL Ratio of Bank Branches -Evidence from T Bank

• Main Authors: Lu, Chun Chen, 盧純真
• Other Authors: Huang, Jr Tsung
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/94737888492531412897

碩士 === 國立政治大學 === 行政管理碩士學程 === 103 === NPL ratio is the main measurement of bank operational risk, which has been valued by foreign and local researchers; however the researches mainly focus on the impact of the macroeconomic environment, the borrower's financial and business indices, and the characteristics of the borrower’s responsible person, but few researches have involved the traits of branch managers or branch characteristics. Therefore, this study collected panel data of sample banks over the years 2009 – 2012 (612 in total) against entire branches and branches in the northern, central and southern regions, and after having verified the best model, the One-Way Fixed Effect Model was adopted to explore the factors affecting the NPL ratio of branches. According to the empirical results of this research, the factors affecting the NPL ratio of all the branches are "the establishment duration of branch", "SME loans to total loans ratio", "consumer loans to total loans ratio", "government agencies and public enterprise loans to total loans ratio" and "loan/deposit interest margins", which all demonstrated significant negative effects. Additionally, the significant factors affecting the NPL ratio of the branches in different regions vary. The relations between the NPL ratio of the branches in the northern region and "manager with university education background", "total number of staff at branch" show a significant positive effect, but significant negative effect is indicated by "loan/deposit interest margins". The relations between the NPL ratio of the branches in the central region and "duration of manager’s appointment", "the establishment duration of branch" show a significant negative effect, but significant positive effect is indicated by "SME loans to total loans ratio". The relations between the NPL ratio of the branches in the southern region and "the establishment duration of branch", "SME loans to total loans ratio", and "consumer loans to total loans ratio" show a significant negative effect.