The Influence of Recession Indicators, Bank-Specific Factors, and Macroeconomic Factors on the Credit Growth Rate of Listed Commercial Banks in Thailand: Before and After Emergency Decree on The Provision of Financial Assistance for Entrepreneurs Affected by Covid-19 Pandemic

Abstract

This study aims to examine the influence of recession indicators, bank-specific factors, and macroeconomic factors on the credit growth rate of listed commercial banks in Thailand, before and after the Emergency Decree on the Provision of Financial Assistance for Entrepreneurs Affected by the COVID-19 Pandemic. Secondary data, in the form of time series data, were collected on a quarterly basis from Q3 2011 to Q2 2024, covering a total 52 quarters.               The multiple regression model was used for analysis. The independent variables include six factors: Recession indicators, Loan-to-Deposit Ratio, Liquidity Assets to Total Assets Ratio, Return on Assets, Gross Domestic Product, and Inflation Rate. Additionally, one dummy variable was included to represent Emergency Decree on the Provision of Financial Assistance for Entrepreneurs Affected by the COVID-19 Pandemic. According to the result, Recession Indicators, Loan-to-Deposit Ratio, Liquidity Assets to Total Assets Ratio, Return on Assets, and                  Gross Domestic Product have a positive influence on the credit growth rate. In contrast, Inflation Rate and the Emergency Decree have a negative influence on credit growth.