Electronic Theses and Dissertation

As intermediate financial intermediaries, banks may be responsible for the problem resulting from increased nonperforming loans in the form of arrears interest payments, principal loan repayments, or both. This study aims to analyze the influence of factors that influence non-performing loans in ASEAN-5 countries. The data in this study involves secondary data in the form of annual data from 1960 to 2020 obtained from the World Bank. The type of data used in this research is panel data, which is a combination of Time Series and Cross Section data. Where the Time Series data used are annual data from 1960-2020 and the Cross Section data are from ASEAN-5 countries. The ASEAN-5 countries used in this study are Indonesia, Malaysia, the Philippines, Singapore, and Thailand. The conclusion of this study is that imports and bank reserves have a significant and positive effect on non-performing loans in ASEAN-5 countries. Meanwhile, real interest rate and real exchange rate are concluded to have a significant and negative effect on non-performing loans in ASEAN-5 countries. To maintain the value of the currency, the government can lower interest rates, extend the period, decrease principal and interest arrears, add financing credit facilities, and convert financing loans. While prioritizing the prudential banking principle, the government's new policies must ensure legal protection and certainty by requiring all banks to provide credit relaxation. In addition, the bank must reduce the debtor's misunderstanding of the requirements and mechanism for providing stimulus in the form of credit relaxation. Keywords: Non-performing loans, Interest Rate, Real Exchange Rate, Imports, Bank Reserves, Time Series, Cross Section, ASEAN-5 countries