DETERMINANT OF NON PERFORMING LOAN: THE CASE OF ISLAMIC BANK IN INDONESIA
Author(s) -
Irman Firmansyah
Publication year - 2015
Publication title -
deleted journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 4
ISSN - 2460-9196
DOI - 10.21098/bemp.v17i2.51
Subject(s) - loan , non performing loan , market liquidity , inflation (cosmology) , monetary economics , financial system , business , islam , economics , finance , geography , physics , archaeology , theoretical physics
This paper analyzes the non-performing loan and its determinant. Using the monthly data of Islamic banks during 2010-2012, this paper found that size and efficiency of the banks do not affect the non-performing loan. On the other hand, GDP and inflation negatively affect the non-performing loan, while the liquidity of the bank positively affects the non-performing loan. The liquidity of also does not mediate the relationship between the size of the bank, their efficiency, the GDP and the inflation to the non-performing loan. Keywords : non-performing loan, liquidity, bank size, efficiency, sobel test, Islamic bank. JEL Classification: C12, G21
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