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DETERMINANTS OF NON-PERFORMING LOANS: EVIDENCE FROM CONVENTIONAL BANKS IN MALAYSIA
Corresponding Author(s) : Puspa Liza Ghazali
Humanities & Social Sciences Reviews,
Vol. 8 No. 2 (2020): March
Abstract
Purpose of the study: This paper attempts to determine the determinants of non-performing loans in commercial banks in Malaysia. This study attempts to explore the specific bank factors as well as macroeconomics factors that are contributing to the non-performing loans.
Methodology: This paper analyzes the data using eight local commercial banks in Malaysia. The data collected from the annual report and Data Streams database for the year 2009 to 2018. A panel data approach has been used to analyze the data. All the determinants regressed against non-performing loans by using STATA 14 as a tool.
Main Findings: The results of this study present that capitalization had a significant negative relationship with non-performing loans, while the real effective exchange rate had a significant positive correlation with non-performing loans.
Applications of this study: This study highlights the crucial factors of the non-performing loans that can be used by the bank or financial institutions.
Novelty/Originality of this study: This study includes one new variable for the macroeconomics factors, which is the real effective exchange rate, and the result shows it is significant towards non-performing loans. Therefore, this study enhances the existing model with the new variable that can be used to find what is affecting the non-performing loans.
Keywords
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- Agoraki, M. E. K., Delis, M. D., & Pasiouras, F. (2011). Regulations, competition and bank risk-taking in transition countries. Journal of Financial Stability, 7(1), 38–48. https://doi.org/10.1016/j.jfs.2009.08.002 DOI: https://doi.org/10.1016/j.jfs.2009.08.002
- Angbazo, L. (1997). Commercial bank net interest margins, default risk, interest rate risk, and off-balance sheet banking. Journal of Banking and Finance, 21, pp. 55-87. https://doi.org/10.1016/S0378-4266(96)00025-8 DOI: https://doi.org/10.1016/S0378-4266(96)00025-8
- Ali, A., & Daly, K. (2010). Macroeconomic determinants of credit risk: Recent evidence from a cross country study. International Review of Financial Analysis, 19(3), 165–171. https://doi.org/10.1016/j.irfa.2010.03.001 DOI: https://doi.org/10.1016/j.irfa.2010.03.001
- Babihuga, R. (2007). Macroeconomic and financial soundness indicators: An empirical investigation. IMF Working Paper, 07/115. https://doi.org/10.5089/9781451866797.001 DOI: https://doi.org/10.5089/9781451866797.001
- Badar, M., & Yasmin Javid, A. (2013). Impact of macroeconomic forces on nonperforming loans: An empirical study of commercial banks in Pakistan. WSEAS Transactions on Business and Economics, 10(1), 40–48.
- Bank Negara Malaysia (2005). Guideline on the classification of impaired loans/financing and provisioning for bad and doubtful debts. Development Finance and Enterprise Department.
- Beck, R., Jakubik, P., & Piloiu, A. (2013). Non-performing loans: What matters in addition to the economic cycle? European Central Bank Working Paper Series, (1515), 34.
- Berger, A. N., & DeYoung, R. (1997). Problem loans and cost efficiency in commercial banks. Journal of Banking and Finance, 21(6), 849–870. https://doi.org/10.1016/S0378-4266(97)00003-4 DOI: https://doi.org/10.1016/S0378-4266(97)00003-4
- Boudriga, A., Boulila, N., & Jellouli, S. (2009). Does Bank Supervision Impact Nonperforming Loans : Cross-Country Determinants using Agregate Data. Munich Personal RePEc Archive, (18068), 1–28. https://doi.org/10.1108/17576380911050043 DOI: https://doi.org/10.1108/17576380911050043
- Brooks, C. (2019). Introductory Econometrics for Finance. 4th Edition. Cambridge University. https://doi.org/10.1017/9781108524872 DOI: https://doi.org/10.1017/9781108524872
- Carbo, S. & Rodriguez, F. (2007). The determinants of bank margins in European banking. Journal of Banking & Finance, 31, pp. 2043-2063. https://doi.org/10.1016/j.jbankfin.2006.06.017 DOI: https://doi.org/10.1016/j.jbankfin.2006.06.017
- Chaibi, H. (2016). Determinants of Problem Loans: Non-performing Loans vs. Loan Quality Deterioration. International Business Research, 9(10), 86. https://doi.org/10.5539/ibr.v9n10p86 DOI: https://doi.org/10.5539/ibr.v9n10p86
- Chinweoke, N., Onydikachi, M., and Elizabeth, N. (2014). Financial intermediation and economic growth in Nigeria (1992 – 2011). The Macrotheme Review 3(6), Summer 2014.
- Chavan, P., and Gambacorta, L. (2016). Bank Lending and Loan Quality: The Case of India. BIS Working Paper No. 595.
- Delis, M. D., & Papanikolaou, N. I. (2009). Determinants of bank efficiency: evidence from a semiâ€parametric methodology. Managerial Finance, 35(3), 260–275. https://doi.org/10.1108/03074350910931771 DOI: https://doi.org/10.1108/03074350910931771
- Demirguc-Kunt, A., & Huizinga, H. (1999). Determinants of Commercial Bank Interest Margins and Profitability: Some International Evidence. World Economic Review, 13(2), 379-408. https://doi.org/10.1093/wber/13.2.379 DOI: https://doi.org/10.1093/wber/13.2.379
- Derbali, A. (2011). Determinants of Banking Profitability Before and During the Financial Crisis of 2007: The Case of Tunisian Banks. Interdisciplinary Journal of Contemporary Research in Business, Vol. 3, No. 3.
- Fofack, Hippolyte L. (2005). Non-performing loans in Sub-Saharan Africa : causal analysis and macroeconomic implications. Policy, Research working paper ; no. WPS 3769. Washington, DC: World Bank. https://doi.org/10.1596/1813-9450-3769 DOI: https://doi.org/10.1596/1813-9450-3769
- Geletta, W. N. (2012). Determinants of non-performing loans: The case of Ethiopian banks (Doctoral dissertation).
- Ghazali, P.L., Foziah, H., Mamat, M., Razak, R.A., Omar, L., Afthanorhan, A., Wan Daud, W.M.N. (2019). Mathematical concept in integration model of education plan Takaful. International Journal of Recent Technology and Engineering, 7(5),594-599.
- Ghazali, P.L.B., Mamat, M., Omar, L.B., Foziah, N.H.M., Guci, D.A., Abdullah, Y.B., & Sazali, N.E.S.B. (2017). Medical integration model of family takaful for blue collar. Far East Journal of Mathematical Sciences, 101(6), 1197–1205. https://doi.org/10.17654/MS101061197 DOI: https://doi.org/10.17654/MS101061197
- Ghazali, P.L.B, Mazlina, A.N., Izah, M.T., Maslina, M., Zulqurnain, W.I., & Mustafa, M. (2015). Optimization of integration model in family takaful. Applied Mathematical Sciences, 9(39), 1899–1909. https://doi.org/10.12988/ams.2015.411930 DOI: https://doi.org/10.12988/ams.2015.411930
- Ghazali, P.L.B, Mohd, I., Ahmad, W.M.A.W., & Mamat, M. (2012a). Implementation of integration model for all. Journal of Applied Sciences Research, 8(3), 1802–1812.
- Ghazali, P.L.B, Mohd, I., Ahmad, W.M.A.W., & Mamat, M. (2012b). Integration model of Education Plan Takaful: A Case Study for Terengganu, Kelantan and Perlis, States in Malaysia. Journal of Applied Sciences Research, 65(1), Page 97-117.
- Greenidge, K., & Grosvenor, T. (2010). Forecasting Non-Performing Loans in Barbados. Journal of Business, Finance & Economics in Emerging Economies, 5(1).
- Fajar, H. & Umanto (2017). The impact of macroeconomic and bank-specific factors toward non-performing loan: evidence from Indonesian public banks. Banks and Bank Systems (open-access), 12(1), 67-74. https://doi.org/10.21511/bbs.12(1).2017.08 DOI: https://doi.org/10.21511/bbs.12(1).2017.08
- Hu, J., Yang, L. & Yung-Ho, C. (2006). Ownership and Non-performing Loans: Evidence from Taiwan's Banks. Developing Economies. Vol. 42, no. 3, pp. 405-420. https://doi.org/10.1111/j.1746-1049.2004.tb00945.x DOI: https://doi.org/10.1111/j.1746-1049.2004.tb00945.x
- Islam, Mohammad & Shil, Nikhil & Mannan, Md. (2005). Non performing loans - its causes, consequences and some learning. University Library of Munich, Germany, MPRA Paper.
- Jiménez, G., & Saurina, J. (2006). Credit Cycles, Credit Risk, and Prudential Regulation. International Journal of Central Banking, 2(January), 65–98.
- Karim, M. Z. A., Chan, S. G., & Hassan, S. (2010). Bank efficiency and non-performing loans: Evidence from Malaysia and Singapore. Prague Economic Papers, 2(2010), 118-132. https://doi.org/10.18267/j.pep.367 DOI: https://doi.org/10.18267/j.pep.367
- Kasselaki, M. T., & Tagkalakis, A. O. (2014). Financial soundness indicators and financial crisis episodes. Annals of Finance, 10(4), 623-669. https://doi.org/10.1007/s10436-013-0233-6 DOI: https://doi.org/10.1007/s10436-013-0233-6
- Khemraj, T., & Pasha, S. (2009). The determinants of non-performing loans: an econometric case study of Guyana. MPRA Paper 53128, University Library of Munich, Germany.
- Kochetkov, Y. (2012). Modern model of interconnection of inflation and unemployment in Latvia. Engineering Economics, 23(2), 117-124. https://doi.org/10.5755/j01.ee.23.2.1543 DOI: https://doi.org/10.5755/j01.ee.23.2.1543
- Laryea, E., Ntow-Gyamfi, M., & Alu, A. A. (2016). Non-performing loans and bank profitability: evidence from an emerging market. African Journal of Economic and Management Studies, 7(4), 462–481. https://doi.org/10.1108/AJEMS-07-2015-0088 DOI: https://doi.org/10.1108/AJEMS-07-2015-0088
- Louzis, D. P., Vouldis, A. T., & Metaxas, V. L. (2012). Macroeconomic and bank-specific determinants of non-performing loans in Greece: A comparative study of mortgage, business and consumer loan portfolios. Journal of Banking & Finance, 36(4), 1012-1027. https://doi.org/10.1016/j.jbankfin.2011.10.012 DOI: https://doi.org/10.1016/j.jbankfin.2011.10.012
- Mendes, V., & Abree, M. (2003). Do Macro-Financial Variables Matter for European Bank Interest Margins and Profitability?. In EcoMod2003-International Conference on Policy Modeling. Global Economic Modeling Network.
- Mileris, R. (2012). Macroeconomic determinants of loan portfolio credit risk in banks. Engineering Economics, 23(5), 496-504. https://doi.org/10.5755/j01.ee.23.5.1890 DOI: https://doi.org/10.5755/j01.ee.23.5.1890
- Hue, Minh. (2015). Non-Performing Loans: Affecting Factor for the Sustainability of Vietnam Commercial Banks. Journal of Economics and Development. 93-106. https://doi.org/10.33301/2015.17.01.06 DOI: https://doi.org/10.33301/2015.17.01.06
- Misra, B. M., & Dhal, S. (2010). Pro-cyclical management of banks’ non-performing loans by the Indian public sector banks. BIS Asian Research Papers.
- Moinescu, B., & Codirlasu, A. (2012). Assessing the Sectoral Dynamics of Non-performing Loans: Signs from Financial and Real Economy. Theoretical & Applied Economics, 19(2).
- Mwega, F. (2011). The Competitiveness and Efficiency of the Financial Services Sector in Africa: A Case Study of Kenya. African Development Review, 23: 44–59. https://doi.org/10.1111/j.1467-8268.2010.00271.x DOI: https://doi.org/10.1111/j.1467-8268.2010.00271.x
- Rajan, R. & Dhal, S.C. (2003). Non-performing loans and terms of credit of public sector banks in India: An empirical assessment. Reserve Bank of India Occasional Papers, 24(3), pp 81-121.
- Saini, P., and Sindhu. J. (2014). Role of Commercial Bank in the Economic Development of India. International Journal of Engineering and Management Research 4: 27–31.
- Salas, V., & Saurina, J. (2002). Credit risk in two institutional regimes: Spanish commercial and savings banks. Journal of Financial Services Research, 22(3), 203-224. https://doi.org/10.1023/A:1019781109676 DOI: https://doi.org/10.1023/A:1019781109676
- Sheefeni, J. P. (2015). Evaluating the Impact of Bank Specific Determinants of Non-performing Loans in Namibia. Journal of Emerging Issues in Economics, Finance and Banking , Vol.4 (No.2), PP.1525-1541.
- Smirlock, M. (1985). Evidence on the (Non) Relationship between Concentration and Profitability in Banking, Journal of Money, Credit and Banking, 17, issue 1, p. 69-83. https://doi.org/10.2307/1992507 DOI: https://doi.org/10.2307/1992507
- Thiagarajan, S., Ayyappan, S., & Ramachandran, A. (2011). Credit Risk Determinants of Public and Private Sector Banks in India. European Journal of Economics, Finance and Administrative Sciences, 34(34), 147–153.
- Warue, B. N. (2013). The effects of bank specific and macroeconomic factors on non-performing loans in commercial banks in Kenya: A comparative panel data analysis. Advances in Management and Applied Economics, 3(2), 135.
References
Agoraki, M. E. K., Delis, M. D., & Pasiouras, F. (2011). Regulations, competition and bank risk-taking in transition countries. Journal of Financial Stability, 7(1), 38–48. https://doi.org/10.1016/j.jfs.2009.08.002 DOI: https://doi.org/10.1016/j.jfs.2009.08.002
Angbazo, L. (1997). Commercial bank net interest margins, default risk, interest rate risk, and off-balance sheet banking. Journal of Banking and Finance, 21, pp. 55-87. https://doi.org/10.1016/S0378-4266(96)00025-8 DOI: https://doi.org/10.1016/S0378-4266(96)00025-8
Ali, A., & Daly, K. (2010). Macroeconomic determinants of credit risk: Recent evidence from a cross country study. International Review of Financial Analysis, 19(3), 165–171. https://doi.org/10.1016/j.irfa.2010.03.001 DOI: https://doi.org/10.1016/j.irfa.2010.03.001
Babihuga, R. (2007). Macroeconomic and financial soundness indicators: An empirical investigation. IMF Working Paper, 07/115. https://doi.org/10.5089/9781451866797.001 DOI: https://doi.org/10.5089/9781451866797.001
Badar, M., & Yasmin Javid, A. (2013). Impact of macroeconomic forces on nonperforming loans: An empirical study of commercial banks in Pakistan. WSEAS Transactions on Business and Economics, 10(1), 40–48.
Bank Negara Malaysia (2005). Guideline on the classification of impaired loans/financing and provisioning for bad and doubtful debts. Development Finance and Enterprise Department.
Beck, R., Jakubik, P., & Piloiu, A. (2013). Non-performing loans: What matters in addition to the economic cycle? European Central Bank Working Paper Series, (1515), 34.
Berger, A. N., & DeYoung, R. (1997). Problem loans and cost efficiency in commercial banks. Journal of Banking and Finance, 21(6), 849–870. https://doi.org/10.1016/S0378-4266(97)00003-4 DOI: https://doi.org/10.1016/S0378-4266(97)00003-4
Boudriga, A., Boulila, N., & Jellouli, S. (2009). Does Bank Supervision Impact Nonperforming Loans : Cross-Country Determinants using Agregate Data. Munich Personal RePEc Archive, (18068), 1–28. https://doi.org/10.1108/17576380911050043 DOI: https://doi.org/10.1108/17576380911050043
Brooks, C. (2019). Introductory Econometrics for Finance. 4th Edition. Cambridge University. https://doi.org/10.1017/9781108524872 DOI: https://doi.org/10.1017/9781108524872
Carbo, S. & Rodriguez, F. (2007). The determinants of bank margins in European banking. Journal of Banking & Finance, 31, pp. 2043-2063. https://doi.org/10.1016/j.jbankfin.2006.06.017 DOI: https://doi.org/10.1016/j.jbankfin.2006.06.017
Chaibi, H. (2016). Determinants of Problem Loans: Non-performing Loans vs. Loan Quality Deterioration. International Business Research, 9(10), 86. https://doi.org/10.5539/ibr.v9n10p86 DOI: https://doi.org/10.5539/ibr.v9n10p86
Chinweoke, N., Onydikachi, M., and Elizabeth, N. (2014). Financial intermediation and economic growth in Nigeria (1992 – 2011). The Macrotheme Review 3(6), Summer 2014.
Chavan, P., and Gambacorta, L. (2016). Bank Lending and Loan Quality: The Case of India. BIS Working Paper No. 595.
Delis, M. D., & Papanikolaou, N. I. (2009). Determinants of bank efficiency: evidence from a semiâ€parametric methodology. Managerial Finance, 35(3), 260–275. https://doi.org/10.1108/03074350910931771 DOI: https://doi.org/10.1108/03074350910931771
Demirguc-Kunt, A., & Huizinga, H. (1999). Determinants of Commercial Bank Interest Margins and Profitability: Some International Evidence. World Economic Review, 13(2), 379-408. https://doi.org/10.1093/wber/13.2.379 DOI: https://doi.org/10.1093/wber/13.2.379
Derbali, A. (2011). Determinants of Banking Profitability Before and During the Financial Crisis of 2007: The Case of Tunisian Banks. Interdisciplinary Journal of Contemporary Research in Business, Vol. 3, No. 3.
Fofack, Hippolyte L. (2005). Non-performing loans in Sub-Saharan Africa : causal analysis and macroeconomic implications. Policy, Research working paper ; no. WPS 3769. Washington, DC: World Bank. https://doi.org/10.1596/1813-9450-3769 DOI: https://doi.org/10.1596/1813-9450-3769
Geletta, W. N. (2012). Determinants of non-performing loans: The case of Ethiopian banks (Doctoral dissertation).
Ghazali, P.L., Foziah, H., Mamat, M., Razak, R.A., Omar, L., Afthanorhan, A., Wan Daud, W.M.N. (2019). Mathematical concept in integration model of education plan Takaful. International Journal of Recent Technology and Engineering, 7(5),594-599.
Ghazali, P.L.B., Mamat, M., Omar, L.B., Foziah, N.H.M., Guci, D.A., Abdullah, Y.B., & Sazali, N.E.S.B. (2017). Medical integration model of family takaful for blue collar. Far East Journal of Mathematical Sciences, 101(6), 1197–1205. https://doi.org/10.17654/MS101061197 DOI: https://doi.org/10.17654/MS101061197
Ghazali, P.L.B, Mazlina, A.N., Izah, M.T., Maslina, M., Zulqurnain, W.I., & Mustafa, M. (2015). Optimization of integration model in family takaful. Applied Mathematical Sciences, 9(39), 1899–1909. https://doi.org/10.12988/ams.2015.411930 DOI: https://doi.org/10.12988/ams.2015.411930
Ghazali, P.L.B, Mohd, I., Ahmad, W.M.A.W., & Mamat, M. (2012a). Implementation of integration model for all. Journal of Applied Sciences Research, 8(3), 1802–1812.
Ghazali, P.L.B, Mohd, I., Ahmad, W.M.A.W., & Mamat, M. (2012b). Integration model of Education Plan Takaful: A Case Study for Terengganu, Kelantan and Perlis, States in Malaysia. Journal of Applied Sciences Research, 65(1), Page 97-117.
Greenidge, K., & Grosvenor, T. (2010). Forecasting Non-Performing Loans in Barbados. Journal of Business, Finance & Economics in Emerging Economies, 5(1).
Fajar, H. & Umanto (2017). The impact of macroeconomic and bank-specific factors toward non-performing loan: evidence from Indonesian public banks. Banks and Bank Systems (open-access), 12(1), 67-74. https://doi.org/10.21511/bbs.12(1).2017.08 DOI: https://doi.org/10.21511/bbs.12(1).2017.08
Hu, J., Yang, L. & Yung-Ho, C. (2006). Ownership and Non-performing Loans: Evidence from Taiwan's Banks. Developing Economies. Vol. 42, no. 3, pp. 405-420. https://doi.org/10.1111/j.1746-1049.2004.tb00945.x DOI: https://doi.org/10.1111/j.1746-1049.2004.tb00945.x
Islam, Mohammad & Shil, Nikhil & Mannan, Md. (2005). Non performing loans - its causes, consequences and some learning. University Library of Munich, Germany, MPRA Paper.
Jiménez, G., & Saurina, J. (2006). Credit Cycles, Credit Risk, and Prudential Regulation. International Journal of Central Banking, 2(January), 65–98.
Karim, M. Z. A., Chan, S. G., & Hassan, S. (2010). Bank efficiency and non-performing loans: Evidence from Malaysia and Singapore. Prague Economic Papers, 2(2010), 118-132. https://doi.org/10.18267/j.pep.367 DOI: https://doi.org/10.18267/j.pep.367
Kasselaki, M. T., & Tagkalakis, A. O. (2014). Financial soundness indicators and financial crisis episodes. Annals of Finance, 10(4), 623-669. https://doi.org/10.1007/s10436-013-0233-6 DOI: https://doi.org/10.1007/s10436-013-0233-6
Khemraj, T., & Pasha, S. (2009). The determinants of non-performing loans: an econometric case study of Guyana. MPRA Paper 53128, University Library of Munich, Germany.
Kochetkov, Y. (2012). Modern model of interconnection of inflation and unemployment in Latvia. Engineering Economics, 23(2), 117-124. https://doi.org/10.5755/j01.ee.23.2.1543 DOI: https://doi.org/10.5755/j01.ee.23.2.1543
Laryea, E., Ntow-Gyamfi, M., & Alu, A. A. (2016). Non-performing loans and bank profitability: evidence from an emerging market. African Journal of Economic and Management Studies, 7(4), 462–481. https://doi.org/10.1108/AJEMS-07-2015-0088 DOI: https://doi.org/10.1108/AJEMS-07-2015-0088
Louzis, D. P., Vouldis, A. T., & Metaxas, V. L. (2012). Macroeconomic and bank-specific determinants of non-performing loans in Greece: A comparative study of mortgage, business and consumer loan portfolios. Journal of Banking & Finance, 36(4), 1012-1027. https://doi.org/10.1016/j.jbankfin.2011.10.012 DOI: https://doi.org/10.1016/j.jbankfin.2011.10.012
Mendes, V., & Abree, M. (2003). Do Macro-Financial Variables Matter for European Bank Interest Margins and Profitability?. In EcoMod2003-International Conference on Policy Modeling. Global Economic Modeling Network.
Mileris, R. (2012). Macroeconomic determinants of loan portfolio credit risk in banks. Engineering Economics, 23(5), 496-504. https://doi.org/10.5755/j01.ee.23.5.1890 DOI: https://doi.org/10.5755/j01.ee.23.5.1890
Hue, Minh. (2015). Non-Performing Loans: Affecting Factor for the Sustainability of Vietnam Commercial Banks. Journal of Economics and Development. 93-106. https://doi.org/10.33301/2015.17.01.06 DOI: https://doi.org/10.33301/2015.17.01.06
Misra, B. M., & Dhal, S. (2010). Pro-cyclical management of banks’ non-performing loans by the Indian public sector banks. BIS Asian Research Papers.
Moinescu, B., & Codirlasu, A. (2012). Assessing the Sectoral Dynamics of Non-performing Loans: Signs from Financial and Real Economy. Theoretical & Applied Economics, 19(2).
Mwega, F. (2011). The Competitiveness and Efficiency of the Financial Services Sector in Africa: A Case Study of Kenya. African Development Review, 23: 44–59. https://doi.org/10.1111/j.1467-8268.2010.00271.x DOI: https://doi.org/10.1111/j.1467-8268.2010.00271.x
Rajan, R. & Dhal, S.C. (2003). Non-performing loans and terms of credit of public sector banks in India: An empirical assessment. Reserve Bank of India Occasional Papers, 24(3), pp 81-121.
Saini, P., and Sindhu. J. (2014). Role of Commercial Bank in the Economic Development of India. International Journal of Engineering and Management Research 4: 27–31.
Salas, V., & Saurina, J. (2002). Credit risk in two institutional regimes: Spanish commercial and savings banks. Journal of Financial Services Research, 22(3), 203-224. https://doi.org/10.1023/A:1019781109676 DOI: https://doi.org/10.1023/A:1019781109676
Sheefeni, J. P. (2015). Evaluating the Impact of Bank Specific Determinants of Non-performing Loans in Namibia. Journal of Emerging Issues in Economics, Finance and Banking , Vol.4 (No.2), PP.1525-1541.
Smirlock, M. (1985). Evidence on the (Non) Relationship between Concentration and Profitability in Banking, Journal of Money, Credit and Banking, 17, issue 1, p. 69-83. https://doi.org/10.2307/1992507 DOI: https://doi.org/10.2307/1992507
Thiagarajan, S., Ayyappan, S., & Ramachandran, A. (2011). Credit Risk Determinants of Public and Private Sector Banks in India. European Journal of Economics, Finance and Administrative Sciences, 34(34), 147–153.
Warue, B. N. (2013). The effects of bank specific and macroeconomic factors on non-performing loans in commercial banks in Kenya: A comparative panel data analysis. Advances in Management and Applied Economics, 3(2), 135.