THE INFLUENCE OF MACROECONOMIC AND MICROECONOMIC FACTORS ON NON PERFORMING LOAN IN CHINESE STATE-OWNED COMMERCIAL BANKS FROM 2008 – 2015

Abstract

With the development of Chinese economic, the commercial environments in China are more diversity, seems everything goes well. But the commercial banks non-performing loan are increasing. Therefore, this research aims to find the specific factors that influence the Non-Performing Loan (NPL) in Chinese five state-owned commercial banks. This research use quantitative research method and using secondary data that taken from year 2008 to 2015 from 5 commercial banks which public on Shanghai Stock Exchange (SSE) and Sina Finance. In this research use Eviews 9 Student Version to conduct the Panel regression model. The result shows that GDP growth rate and capital adequacy rate have negative and no significant effect to NPL. Inflation rate has positive and significant effect to NPL. Benchmark lending rate and loan amount has negative and significant effect to NPL. There is significant simultaneous influence of GDP growth rate, inflation rate, benchmark lending rate, loan amount, and CAR on NPL