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  1. Yangon University of Economics
  1. Yangon University of Economics
  2. Master of Banking and Finance (MBF/EMBF)

LOAN PORTFOLIO AND NON-PERFORMING LOANS IN KBZ BANK LIMITTED ( Hanni Chit, 2019)

http://hdl.handle.net/20.500.12678/0000001587
http://hdl.handle.net/20.500.12678/0000001587
1e9f3d5d-224a-4974-9dfa-ad4e0a41b6fa
0d8a31a9-34f1-4ba4-b406-fd618c4f074e
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Hanni Hanni Chit- MBF Day 1st Batch.pdf (596 Kb)
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Title
Title LOAN PORTFOLIO AND NON-PERFORMING LOANS IN KBZ BANK LIMITTED ( Hanni Chit, 2019)
Language en
Publication date 2019-10-01
Authors
HANNI CHIT
Description
This paper investigates on the relationship between loan portfolio and non-performing loans. Two main objectives of this study are to identify the loan portfolio of Kanbawza Bank and to evaluate the relationship between loan portfolio and non-performing loans in KBZ bank. This study covered the ten-year period from 2009-2010 Fiscal year to 2018-2019. It is mainly based on secondary data from previous researches and KBZ bank data from loan department. In this study, Pearson correlation and Multilinear regression analysis were used. The study shows that there a negative relationship between loan portfolio of trading, service and others sectors and non-performing loans of KBZ Bank while there is a positive and significant correlation between loan portfolio of construction sector and transport sector, and non-performing loans in KBZ bank. However, regression shows that all sectors except transport sector has all positive standardized coefficients. Production sector was excluded sector to show correlation and regression because only one year among the study years, has non-performing loans. In this paper, one limitation is that loan portfolio was the percentage composition of loan value granted for six sectors in each fiscal year. From this study, the correlation analysis shows that KBZ bank should grant more loans to trading, service and others sectors in future, but construction and transport sectors are not good sectors to provide loans at the present and should only do more strict collection for those two sectors. As large domestic bank, KBZ bank should have a deep understanding of local businesses to collect information about borrower’s capacity to repay. In addition, Myanmar banking still needs efficient market where right information is available like Credit Bureau. The study finally suggests that KBZ bank should employ sector experts and skillful portfolio managers for bank investment.
Journal articles
Yangon University of Economics
Thesis/dissertations
Yangon University of Economics
Daw Yee Yee Thein
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