An Empirical Analysis of the Influencing Factors of Commercial Banks’ Non-Performing Loan Ratios

Rui Wang; Shishuo Chen; Chengyu Wang

doi:10.2991/978-2-38476-611-6_84

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An Empirical Analysis of the Influencing Factors of Commercial Banks’ Non-Performing Loan Ratios

Authors

Rui Wang¹^{, *}, Shishuo Chen², Chengyu Wang²

¹International Business School, Xi’an Jiaotong-Liverpool University, Suzhou, Jiangsu, China

²College of Industry-Entrepreneurs and HeXie Academy, Xi’an Jiaotong-Liverpool University, Suzhou, Jiangsu, China

^*Corresponding author. Email: Rui.Wang22@student.xjtlu.edu.cn

Corresponding Author

Rui Wang

Available Online 7 September 2026.

DOI: 10.2991/978-2-38476-611-6_84 How to use a DOI?
Keywords: Non-performing loans; Commercial banks; Credit risk; Capital adequacy ratio; Inflation sensitivity
Abstract: This paper conducts an empirical analysis of the factors associated with the non-performing loan ratio of commercial banks. Using relevant data and an OLS regression model with clustered standard errors, it examines the relationships among variables and their interaction effects, and verifies model adequacy through the Ramsey RESET test, the Breusch-Pagan test, and the White test. The results show significant differences between large banks and regional small and medium-sized banks. Among large banks, CAR and ROA are significantly positively associated with NPL, while PCR is significantly negatively associated with NPL. Among small banks, CAR and NPL show a U-shaped nonlinear relationship; LDR, GCPI, and CIR are significantly positively associated with NPL. Based on these findings, this study proposes differentiated business strategies and policy suggestions for both bank types.
Copyright: © 2026 The Author(s)
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 3.0 International License (http://creativecommons.org/licenses/by-nc/3.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title: Proceedings of the 2026 12th International Conference on Digital Humanities and Frontiers in Social Sciences (DHFSS 2026)
Series: Advances in Social Science, Education and Humanities Research
Publication Date: 7 September 2026
ISBN: 978-2-38476-611-6
ISSN: 2352-5398
DOI: 10.2991/978-2-38476-611-6_84 How to use a DOI?
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 3.0 International License (http://creativecommons.org/licenses/by-nc/3.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

ris enw bib

TY  - CONF
AU  - Rui Wang
AU  - Shishuo Chen
AU  - Chengyu Wang
PY  - 2026
DA  - 2026/09/07
TI  - An Empirical Analysis of the Influencing Factors of Commercial Banks’ Non-Performing Loan Ratios
BT  - Proceedings of the 2026 12th International Conference on Digital Humanities and Frontiers in Social Sciences (DHFSS 2026)
PB  - Atlantis Press
SP  - 761
EP  - 770
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-611-6_84
DO  - 10.2991/978-2-38476-611-6_84
ID  - Wang2026
ER  -

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