Determinants of default risk: a comparative analysis on banking industry in Indonesia and Singapore / Nur Afina Nadhirah Azmi

Azmi, Nur Afina Nadhirah (2017) Determinants of default risk: a comparative analysis on banking industry in Indonesia and Singapore / Nur Afina Nadhirah Azmi. Degree thesis, Universiti Teknologi MARA, Johor.


The purpose of the research study is to examine the relationship of default risk or nonperforming loans of the banking industry in Indonesia and Singapore. It is aimed to see any differences in the fictors that may affect the banking industry in Indonesia and Singapore since Indonesia has the higher nonperforming loan while Singapore has the lower nonperforming loan. The factors that may affect the default risk are including unemployment rate, lending interest rate and also domestic credit. The observation in this research is 17 observation between 1999 to 2015 years from both countries. After the test done, this study would make a comparison of performance and relationship between both countries according to the results. It is to investigate whether the all variables are related with the nonperforming loan or only a few variable, it mostly depends on rules and regulation of country. The bad of movement nonperforming loan could threaten the stability of banking sector. This research is based on data obtained from World Bank and Federal Reserve Economic Data (FRED). Other than that, by doing research will also increase knowledge and give a clear view on the relationship of each variable conducted. Hopes that, this research would give benefit to future researcher and contribute the improvement of performance nonperforming loan every country.


Item Type: Thesis (Degree)
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Azmi, Nur Afina Nadhirah
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Thesis advisor
Hamzah, Nor Haliza
Subjects: H Social Sciences > HG Finance > Banking > Special classes of banks and financial institutions
Divisions: Universiti Teknologi MARA, Johor > Segamat Campus > Faculty of Business and Management
Programme: Bachelor of Business Administration (HONS) Finance
Keywords: banking industry; unemployment rate; lending interest rate
Date: July 2017
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