The effects of macroeconomic variables on non-performing loans in asean countries / Muhammad Fadzarul Rahman

This paper aims to examine the effects of macroeconomic variables toward non-performing loans in Asean countries. The variables used in this study are the unemployment rate (UN), inflation rate (INF), gross domestic product (GDP), and lending interest rate (INT). As for the sample of this study, it comprises of 75 observations each for the independent and dependent variables on a yearly basis over fifteen years period from 2000 to 2014 and the data are gathered from World Bank. The selected asean countries are including Malaysia, Indonesia, Singapore, Thailand and Philippines. E-views7 software package has been used in analysing the data. In order to observe the relationship between the macroeconomic variables and non performing loans in Asean countries, an econometric test has been conduct during this research. The results reveal that only two independent variables that have a significant relationship towards the non-performing loan which are, inflation rate and lending interest rate.