The asymmetric relationship between macroeconomic determinants and non-performing loans: evidence from the banking industry of Indonesia

• Main Authors: Fakhrunnas, Faaza, Isnaini Nugrohowati, Rindang Nuri, Haron, Razali, Anto, MB Hendrie
• Format: Article
• Language: English; English
• Published: Bank Indonesia Institute 2023
• Subjects: HG1501 Banking
• Online Access: http://irep.iium.edu.my/107391/7/107391_The%20asymmetric%20relationship%20between%20macroeconomic%20determinants_SCOPUS.pdf; http://irep.iium.edu.my/107391/8/107391_The%20asymmetric%20relationship%20between%20macroeconomic%20determinants.pdf; http://irep.iium.edu.my/107391/; https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=2049&context=bmeb

Non-Performing Loans (NPLs) represent a risk that can significantly affect the financial performance of banks. This study aims to examine the macroeconomic determinants of NPLs in the Indonesian banking industry from 2005Q1 to 2019Q4. It adopts a novel approach, namely the nonlinear autoregressive d...