Open AccessFactors Affecting Non-performing Loans in Pakistan during the Covid-19 Pandemic: A Case of Micro Finance Banks
Author(s) -
Muhammad Akbar Ali Ansari,
Nadia Hanif,
Muhammad Tahir,
Ali Junaid Khan
Publication year - 2021
Publication title -
review of economics and development studies
Language(s) - English
Resource type - Journals
eISSN - 2519-9706
pISSN - 2519-9692
DOI - 10.47067/reads.v7i4.409
Subject(s) - covid-19 , microfinance , pandemic , business , non performing loan , regression analysis , financial system , economics , actuarial science , finance , loan , economic growth , statistics , medicine , mathematics , disease , pathology , virology , outbreak , infectious disease (medical specialty)
The basic purpose of this study is to investigate the factors affecting non-performing loans of microfinance banks in Pakistan during the COVID-19 Pandemic. The research used secondary data from the Pakistan Bureau of Statistics and SBP websites regarding the banking industry in FY 2020–2021, and the data was subjected to a multi-regression analysis. The analysis included a number of variables, including GDP growth rate, management efficiency, bank size and return on assets. According to the study's results, all three variables had a statistically significant affect on the outcome except business size. Non-performing loans have been found to have a important positive association with the country's economy.