The relationship between banking business and management and non-performing loans in Taiwan - Consumer Banking vs. Institutional Banking ＆ Public Banking vs. Private Banking

• Main Authors: Yi-TingWu, 吳宜庭
• Other Authors: Hsuan-Chu Lin
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/583ejp

碩士 === 國立成功大學 === 財務金融研究所 === 105 === This paper discusses a multiple linear regression conducted during the first quarter of 2008 to the third quarter of 2016 on 38 banks separately for banking business (consumer banking and institutional banking) and management (private banking and public banking) to examine the determinants of non-performing loans in the Taiwanese banking sector. It is found that the influence of bank characteristics on NPLs is low, especially considering bank specific factors, such as NPLT-1, size, return on equity, and the capital adequacy ratio in the models, which mitigate the effect of bank characteristics. Therefore, there is insufficient evidence to support our hypothesis. However, this research may help us to understand and provide information to financial institutions regarding the potential effect of both macroeconomic and bank-specific variables on NPLs.