Loan Growth and Bank Risk: Empirical Study on Commercial Banks in Asia Pacific

RACHMADI, ERFAN and Muizzuddin, Muizzuddin and Taufik, Taufik (2023) Loan Growth and Bank Risk: Empirical Study on Commercial Banks in Asia Pacific. The 8th Indonesian Finance Association International Conference. ISSN 25480606

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Abstract

This research examined the effect of credit growth and banking risk in the Asia-Pacific. The data were collected from 353 commercial banks in Bankfocus from 2012 to 2021. The research used Generalized least squares (GLS) estimation, which showed the relationship between credit growth and bank risk. Bank risk is proxied by Non-Performing Loans (NPL), Equity to Total Assets (ETA), and Return on Assets (ROA). The research found that credit growth negatively affects Non-Performing Loans (NPL) and Equity to Total Assets (ETA). Meanwhile, credit growth positively impacted Return on Assets (ROA). In addition, this study also conducted a comparative assessment based on bank size and credit growth rate. The results mentioned that banks in Asia-Pacific were selective in extending credit so that the risk of default was opposite to credit growth. The limitation of this research is that the research sample and the variables of risk measurements are still limited. For further research, adding samples and risk measurement variables is recommended

Item Type:	Article
Subjects:	#3 Repository of Lecturer Academic Credit Systems (TPAK) > Articles Access for TPAK (Not Open Sources)
Divisions:	01-Faculty of Economics > 61201-Management (S1)
Depositing User:	Tn Taufik Taufik
Date Deposited:	18 Aug 2024 23:54
Last Modified:	18 Aug 2024 23:55
URI:	http://repository.unsri.ac.id/id/eprint/154930

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