Forecasting Non-performing Loan

Ronel, Hridoy Islam

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dc.contributor.author	Ronel, Hridoy Islam
dc.date.accessioned	2020-11-16T10:13:59Z
dc.date.available	2020-11-16T10:13:59Z
dc.date.issued	2020-09-19
dc.identifier.uri	http://dspace.daffodilvarsity.edu.bd:8080/handle/123456789/5098
dc.description	Non-performing loan is a type of advance which is near to default or which is being default over time. Default Sometimes this agreement depends on several contracts according to bank’s or borrowers own policy as well as their demand too. According to International Monetary Fund , borrower has a term of 90 days or more which maturity time is fixed for the borrower for their installments. But agreements can be renegotiated in some condition between borrower and lender. By the definition of bank administrative, non-performing loan is made of advances which are 90 days past or due but is able to collect interest on the hand loan has not been settled yet. Having a developing country like Bangladesh, we have structure of undeveloped capital market. As a consequence , people need to depend on not only government bank but also private commercial banks as well as foreign banks either. Generally banking sector saves and provides capital to the investor. According to this function , all the banks has done their activities . if we look at the of our financial sector for the last couple of decades, we can find proper output of banking industry performance in non-performing loan in Bangladesh. By seeing the amount of NPL we can easily say that the amount of NPL ratio is rocketing up every year which is an upward trending movement for the banking sector. According to banking data we had the ratio (41.1% )of total classified loans in banking sector in 1991. The ratio of non-performing loan is not a fixed or not a certain level because in some years it may stay at a upward position but after a couple of period the amount ratio can be lowered level. So, the ups and down trend caused the banking sector vulnerably more weaken. It is clear that NPLs decrease the profitability because bank cannot collect the interest amount from the borrower of defaulting from different types of performing loan. As a result, loanable funds decreased because of loan defaulter.it will be great suffer for those banks whose already have most loan defaulter than that of saver .	en_US
dc.description.abstract	Non-Performing loan is growing gradually with respect to time in Bangladesh. In this paper, we discuss the trend of Nonperforming loan (NPL) in the banking sector of Bangladesh. The paper discloses that the alarming amount of NPL is gradually increasing in the Banking sector of Bangladesh as well as the flaws and suggestions regarding the recovery of NPL. Finally, we develop a linear regression model for the forecasting of NPL in Bangladesh. This model helps to forecast how much NPL increased in near future that help us to give the focus of recuperating the loan.	en_US
dc.language.iso	en	en_US
dc.publisher	Daffodil International University	en_US
dc.subject	Loan Servicing	en_US
dc.subject	Forecasting	en_US
dc.title	Forecasting Non-performing Loan	en_US
dc.title.alternative	Perspective of Bangladesh	en_US
dc.type	Other	en_US