Abstract:
The purpose of this research is to identify the influence of GDP growth rate, bank
interest rate, inflation rate, capital adequacy ratio, and return on asset towards
non-performing loans in Chinese commercial banks partially and simultaneously.
This study has applied descriptive statistical analysis, classical hypothesis testing,
multiple linear regression and hypothesis testing. When selecting the observation
data, this research adopt the intentional sampling method and panel data, 70 units
of observational data in total, one part of the data was taken from the financial
reports of seven selected sample companies on the Shanghai Stock Exchange in
China, and another part of the data was taken from the kylc website. The method
used a quantitative approach with the instrument is EViews 10. The result
indicates that BIR and IFR have the partially negative significant influence
towards NPL. However, GDP growth rate, CAR and ROA have a negative
insignificant effect to NPL. Simultaneously, all of the independent variables have
the significant effect to NPL which described by the value of 63.9% and the left
36.1% is explained by another factor that excluded in this study. Furthermore, IFR
was chosen as the most significant factor which influences NPL.
