Bank specific determinants of NPLs in Thai banking industry : during 2005-2014

Abstract

The objective of this research was to analyze determinants of nonperforming loans (NPLs) in commercial banking industry of Thailand during 2005 and 2014. This study used quarterly secondary data, from the 1st quarter 2005 to the 4th quarter 2014, totaling 40 quarters. Descriptive statistics for testing data and econometric method for analyzing equation, and multiple regression analysis for testing the hypothesis were used. The results of this research showed that the nonperforming loans (NPLs) in commercial banking industry of Thailand was positively related to the size of commercial bank with a confidence level of 95%,but negatively related to consumer price index and prime rate with a confidence level of 95%. Loan-to-deposit ratio, gross domestic product, and loan volume were not related to NPLs.