| dc.description.abstract | Non-banking financial institutions (NBFIs) are one of the most growing industries of Bangladesh. There are in total of 36 NBFIs in Bangladesh who play a vital role in the economy of Bangladesh. Non-performing loan is one of the major terms that all NBFI are aware of. The growth of NBFI industry highly depends on the management of non-performing loans and this non-performing loan is affected by many factors and variables.
The study uses rigorous quantitative analysis to look at how variables like GDP, inflation, Advance-to-Deposit Ratio (ADR), Debt-to-Equity Ratio (DER), Return on Assets (ROA), Net Interest Margin (NIM), and Gross Domestic Product (GDP) affect top NBFIs in Bangladesh's Non- Performing Loans (NPL). The results provide important new information: ROA negatively affects NPL statistically, indicating that NBFIs must remain profitable in order to control non-performing loans and reduce credit risk. On the other hand, it was discovered that GDP and inflation had a positive and significant impact on NPL, suggesting that macroeconomic factors are crucial in determining the credit risk that these institutions confront. The paper makes extensive recommendations to solve the credit risk management issues that the NBFI sector in Bangladesh are facing by utilizing these insights. These include putting a high priority on managing profitability, keeping a close eye on macroeconomic developments, fortifying thorough frameworks for managing credit risk, and preserving portfolio diversification and regulatory compliance. By putting these suggestions into practice, NBFIs in Bangladesh will be able to efficiently reduce credit risk, handle non- performing loans, and preserve financial stability, all of which will ultimately support the industry's sustainable growth and provide people and companies hope for a better future. | en_US |
