ANALYSING THE INFLUENCE OF RETURN ON ASSETS, RETURN ON EQUITY AND NON-PERFORMING LAONS RATIO TOWARD GROSS DOMESTIC PRODUCT GROWTH RATE IN CHINA (A CASE OF STUDY CHINA'S COMMERCIAL BANKS 2012-2016)

Abstract

The purpose of this study is to analyze the influence of China's commercial bank's return on assets, return on equity and non-performing loans ratio towards GDP growth rate in China, in recent years, china GDP growth rate is decreasing, so this study analyzed the influence internal factors of commercial banks in china, Quantitative research is applied so that it can be analyzed through mathematical expression. Secondary data will be used. Sample of this research is China's commercial banks top 20 listed in China from 2012 to 2016. This research uses multiple regression test, F-test and T-test in order to examine the hypothesis testing. Obtained the results from multiple regression test which shows that all independent variables of return on assets, return on equity and non-performing loans ratio significant influence GDP growth rate. Return on assets and return on equity have the positive influence on GDP growth rate. While non-performing loans ratio has the negative influence on GDP growth rate