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Academic Journal of Business & Management, 2020, 2(2); doi: 10.25236/AJBM.2020.020206.

Research on the Influencing Factors of Non-Performing Loan Rate of Agricultural Commercial Bank based on Multiple Regression Model

Author(s)

Wu Yuyu

Corresponding Author:
Wu Yuyu
Affiliation(s)

Anhui University of Finance and Economics, Bengbu, 233030, China

Abstract

Based on theoretical analysis, this paper chooses explanatory variables from macroeconomic situation and bank micro-operation behavior, establishes a multi-linear regression model of influence factors of non-performing loan rate of rural commercial banks on the basis of quarterly data from 2014 to 2019, modifies the model through multiple collinearity, heteroscedasticity, autocorrelation and other quantitative tests. The results show that the loan rate is positively correlated with the profit margin of bank assets, the ratio of deposit to loan, and negatively correlated with the reserve coverage. On this basis, combined with the actual situation, this paper puts forward reasonable suggestions on how to prevent the increment of non-performing loans and how to dissolve the stock of non-performing loans from the perspective of market, government and bank, aiming at promoting rural commercial banks to better serve the development of agriculture, countryside and farmers, and creating favorable conditions for the comprehensive implementation of rural strategy.

Keywords

Rural Commercial Bank; non-performing loan rate; Multivariate linear regression model

Cite This Paper

Wu Yuyu. Research on the Influencing Factors of Non-Performing Loan Rate of Agricultural Commercial Bank based on Multiple Regression Model. Academic Journal of Business & Management (2020) Vol. 2, Issue 2: 44-52. https://doi.org/10.25236/AJBM.2020.020206.

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