International Research Journal of Business Studies
Vol. 12 No. 3 (2019): December 2019-March 2020

Loan-to-Value Policy and Property Loans Risk in Conventional Commercial Banks of Indonesia

Sasikirono, Nugroho (Unknown)
Sudana, I Made (Unknown)
Sumanto, Syelma (Unknown)
Meidiaswati, Harlina (Unknown)

Article Info

Publish Date
20 Dec 2019

Abstract

This study aims to determine the effect of loan-to-value (LTV) policy on bank’s property loan risk of Indonesia. This study utilizes a purposive sampling method and multiple linear regression analysis techniques. The number of samples in this study is 66 banks with 563 observations data. The results show that bank’s property loan risk, which is proxied by the NPL ratio of property loans, is lower in the LTV tightening policy period than the easing period. We utilize some control variables in this study: inflation, gross domestic product growth, property loan growth, and bank size. Inflation, property loan growth, and bank size have a significant positive effect on non-performing loans, while gross domestic product growth has a significant negative effect.

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Journal Info
International Research Journal of Business Studies
Website

Abbrev

jurnalirjbs

Publisher

Universitas Prasetiya Mulya

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

International Research Journal of Business Studies (IRJBS) comprises three constructs. The word “International” refers to our mission to provide readers with relevant fields of study and to involve authors in giving their contributions on an international scale. ”Research Journal” refers to ...