Borrower-specific and Bank-specific determinants of Non-performing loans in Bangladesh

The banking system acts as the main channel for fund reallocation from surplus units to deficit units. However, loan default is the key obstacle behind the bad management of funds, and the instability in the banking system as well as the economy. There are a number of factors affecting the loan performance of banks.

This study examined the major borrower-specific determinants and bank-specific determinants of loan default. In doing so, both the primary and secondary data are collected through appropriate methods. Grounded on survey-based data, borrower-specific factors are analysed, while banks’ annual report based secondary data is used to analyse the bank-specific determinants.