The non-performing loans and macroeconomic indicators in Asia region / Siti Munirah Jamaluddin

This paper investigates the impact of the non-performing loans and macroeconomic indicators in Asia’s Region. The objectives of this research is to investigate the relationship between macroeconomic indicators with non-performing loans interest rate, inflation, unemployment, and gross domestic product. Another objective is to indicate the most significant relationship between the non-performing loans with interest rate, inflation, unemployment, and gross domestic product. A research framework and hypothesis are developed and tested using linear regression analysis. This study used panel data methods which involves the dependent variable; non-performing loans (NPL), while the independent variables; gross domestic product (GDP), inflation rate (INF), lending interest rate (IR), and unemployment rate (UE). All the data provided are gathered starting yearly 1998 until 2014 which is 18 years and focus on 14 countries out of 38 countries. The data provided are gathered from the sources of World Bank Data Base and Global Economic.com.