Decision factors for debt restructuring of non-performing debtors: A case study of an asset management company

Abstract

The problem of the amount of non-performing loans of commercial banks has increased due to the Covid-19 virus outbreak situation. As a result, commercial banks have developed a solution to the problem of non-performing loans by using the debt restructuring method of debtors to prevent defaults on loan payments. Therefore, this research aims to study the factors and levels of opinions on the factors that cause debtors to decide to restructure their debts with asset management companies. This research used a questionnaire to collect data from a sample group of 300 people who had debt restructuring with an asset management company. The questionnaire data was divided into two parts: factors within the asset management company and factors of debt repayment ability. The data were then analyzed using descriptive and inferential statistics. The results of the research found that factors within the asset management company and the factors of debt repayment ability were at a high level. In addition, the test results of the hypothesis found that groups of respondents with different ages and average monthly incomes had different opinions on various factors. Finally, the research has suggested guidelines for setting policies, criteria, and conditions for considering debt restructuring to be more efficient in the future.