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This study aims at understanding bank-level factors that determine non-performing loans (NPLs) in the Indonesian banking industry By using a fixed-effects panel regression model, it is evident that NPLs in Indonesian commercial banks can be attributed to bank-specific factors, namely profitability and credit growth. These results shed light on the importance of micro-prudential surveillance on banks lending behavior to restrain the level of NPLs. With regards to the empirical finding on Read More
