ISSN: 2319-7285
+44 1300 500008
Department of Commerce, Tribhuvan University, Kathmandu, Nepal
Research Article
Impact of Non-Performing Assets on Profitability: A Panel Regression Analysis of Commercial Banks in Nepal
Author(s): Pramod Dahal*
This study investigates the impact of Non-Performing Assets (NPA) on the profitability of Nepalese commercial banks using a panel data approach. This study employs panel data of 21 currently functioning commercial banks from 2017/18 to 2021/22, which totals 105 years of observations, to examine the impact of Non-Performing Assets (NPA) on the profitability of Nepalese commercial banks. To investigate the explanatory power of non-performing assets on banks' profitability, the commercial banks' Return on Equity (ROE) is used as the dependent variable, and Non-Performing Assets (NPA), the Laon Loss Provision (LLP) to loan and advances, Loan and Advance to Total Deposit Ratio (LTDR), Return on Investment (ROI), and Capital Adequacy Ratio (CAR) are used as the controlled variables. Results from panel regression, correlation analysis, data stationary, and descriptive statistics are .. View More»
DOI:
10.35248/2319-7285.23.12.047