Research Article
The Influence of Macroeconomic Conditions on the Level of NPL in ASEAN-6
@INPROCEEDINGS{10.4108/eai.3-10-2024.2358769, author={Jannat Hasbillah Royan Asagam and Andika Pambudi and Rico Ricardo and Feriansyah Feriansyah}, title={The Influence of Macroeconomic Conditions on the Level of NPL in ASEAN-6}, proceedings={Proceedings of the 3rd International Conference on Contemporary Risk Studies, ICONIC-RS 2024, 3 October 2024, Surakarta, Indonesia}, publisher={EAI}, proceedings_a={ICONIC-RS}, year={2025}, month={9}, keywords={npl economics growth exchange rate interest rate inflation}, doi={10.4108/eai.3-10-2024.2358769} }- Jannat Hasbillah Royan Asagam
Andika Pambudi
Rico Ricardo
Feriansyah Feriansyah
Year: 2025
The Influence of Macroeconomic Conditions on the Level of NPL in ASEAN-6
ICONIC-RS
EAI
DOI: 10.4108/eai.3-10-2024.2358769
Abstract
ASEAN is the country with the third largest trade volume in the world after the European Union and America, the increasing economic activity in ASEAN which continues to increase causes an increase in activity in the banking sector. This causes changes in NPL in ASEAN. This study aims to determine the effect of macroeconomic conditions on NPL using the panel data regression method. The results of the study indicate that economic growth has a negative and significant effect on NPL, the exchange rate has a positive and significant effect on NPL, interest rates have a negative and insignificant effect on NPL, and inflation has a positive and insignificant effect on NPL. The government should evaluate macroeconomic policies to maintain the stability of the financial system in ASEAN. The central bank can provide policy recommendations to regulate bank capital adequacy ratios, regulate liquidity policies, and create better supervisory guidelines.
