FACTORS AFFECTING NON-PERFORMING LOANS OF A GOVERNMENT BANK

Abstract

               The objectives of this research were to 1) study the level of factors considering credit and non-performing loan of Government Bank, 2) study factors affecting non-performing loan (NPL) of Government Bank. The data of this study were secondary time series since January, 2017 to December, 2018 totally 2 years which retrieved from the information technology system of one site of the Government Bank in Phra Nakhon Si Ayutthaya province. The amount of NPL debtors were 407 persons which were categorized into 3 groups namely housing credit, personal credit, and state policy project credit. These data were simulated by Economics in order to explain the relationship of variables in equation, estimated coefficient of variables from the simulation of least square method.
              The research findings were as follows:
              1) The relationship between factors considering credit and non-performing loan of one site Government Bank in Phra Nakhon Si Ayutthaya province for the housing credit revealed that factors of ability to pay debts, guarentees, and monitoring and controlling debts of Government Bank had positive relationship with NPL at a statistical significance level of 0.05.
              2) The relationship between factors considering credit and non-performing loan of one site Government Bank in Phra Nakhon Si Ayutthaya province for the personal credit revealed that factors of guarentees, ability to pay debts, and change of interest rate had positive relationship with NPL at a statistical significance level of 0.05.
             3) The relationship between factors considering credit and non-performing loan of one site Government Bank in Phra Nakhon Si Ayutthaya province for the state policy project credit revealed that factors of guarentees, economical situation, change of interest rate, and credit facilitation had positive relationship with NPL at a statistical significance level of 0.05.