Macroeconomic Factors Affecting Non-performing Loan of Bank for Agriculture and Agricultural Cooperatives

Abstract

          The Objective of this study was to 1) Study the situation of a non-performing loan of  the Bank for Agriculture and Agricultural Cooperatives. 2) Analyze macroeconomic factors affecting non-performing loans of the Bank for Agriculture and Agricultural Cooperatives.This research consisted of descriptive analysis and quantitative analysis. The dependent variable is the number of NPLs, and the independent variables included the amount of loans, interest rate policy, gross domestic product (Agricultural), agricultural price index, and consumer price index. This adopted the quarterly secondary and time series of 36 quarters from quarter 1, 2013- to quarter 4, 2021.

The results showed that 1) the Situation of non-performing loans of the Bank for Agriculture and Agricultural Cooperatives tends to increase every year during the research period. Rice was the highest NPLs ratio followed by then rubber, sugarcane, and cassava. 2) That three factors affecting non-performing loans of the Bank for Agriculture and Agricultural Cooperatives and the number of loans then the gross domestic product (Agricultural) were positively related to the non-performing loans of Bank for Agriculture and Agricultural Cooperatives at the significance level of 0.05 and consumer price index at the significance level of 0.10.