The The Impact of Interest and Credit Rate Policies and Macroeconomic Factors on Non-Performing Loans in Singapore

English

Abstract

The objective of this research is just to investigate the effect of variables on credit, inflation, interest rates, exchange rates, and non-performing loans. we using secondary data from January 2000 to 2020 in Singapore. Data were using the analysis to ascertain the relationship between the Autoregressive Distributed Lag (ARDL). We found that each approved loan carries the risk of non-performing loans. The interest rates rising increases the risk of defaulted loans. However, inflation has no effect on non-performing loans in Singapore. However, the exchange rate actually has a significant negative relationship to non-performing loans where the stronger the Singapore currency reduces the risk of nonperforming loans in Singapore.