Analysis of Overdue Loans from Customers and Factors Affecting Banks' Recovery Strategies

Xuening Bai

doi:10.54254/2754-1169/26/20230601

Research Article

Open access

Published on 13 September 2023

Download pdf

Bai,X. (2023). Analysis of Overdue Loans from Customers and Factors Affecting Banks' Recovery Strategies. Advances in Economics, Management and Political Sciences,26,379-384.

Export citation

Analysis of Overdue Loans from Customers and Factors Affecting Banks' Recovery Strategies

Xuening Bai *^,1,

¹ University of Toronto

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/26/20230601

Abstract

Banks still want to recover part of overdue loans, and choose a corresponding debt collection strategy for each customer based on some factors. The article uses cross-sectional analysis and nonparametric tests to determine the factors that influence banks' recovery of loans. From the analysis, recovery strategies and sex are independent of each other. Loan recovery ratios are related to the cost of debt collection strategies. A binary logistic regression model concludes that gender, age and expected recovery amount did not influence the choice of debt collection strategy.

Keywords

non-performing loan, recovery strategy, cross-table, comparative analysis, Kolmogorov-Smirnov test, non-parametric test, binary logistic regression

View pdf

References

[1]. Beaton, Ms Kimberly, Ms Alla Myrvoda, Shernnel Thompson. 2016 Non-performing loans in the ECCU: Determinants and macroeconomic impact. International Monetary Fund.

[2]. BCBS. 2017 Basel III: International Regulatory Framework for Banks. BIS, 7 Dec.www.bis.org/bcbs/basel3.htm.

[3]. Chang R D, Shen W H, Fang C J. 2008 Discretionary loan loss provisions and earnings management for the banking industry[J] International Business & Economics Research Journal (IBER) 7 (3).

[4]. Migwi, James M. 2013 Credit Monitoring and recovery strategies adopted by Commecial Banks in Kenya. Diss. University of Nairobi.

[5]. Wu B X. 2011 Consumption and management: New discovery and applications. Elsevier.

[6]. Kamakura, Wagner A., Michel W. 1997 Statistical data fusion for cross-tabulation[J] Journal of Marketing Research 34 (4) 485-498.

[7]. McHugh, Mary L. 2013 The chi-square test of independence Biochemia medica 23 (2) 143-149.

[8]. Charles P. 1967 A Framework for the Comparative Analysis of Organizations[J] American Sociological Review 32 (2) 194–208.

[9]. Massey Jr, Frank J. 1951 The Kolmogorov-Smirnov test for goodness of fit[J] Journal of the American statistical Association 46 (253) 68-78.

[10]. Hoeffding, Wassily. 1994 A non-parametric test of independence. The Collected Works of Wassily Hoeffding. Springer, New York, NY 214-226.

[11]. Harrell, Frank E. 2015 Binary logistic regression. Regression modeling strategies. Springer, Cham 219-274.

Cite this article

Bai,X. (2023). Analysis of Overdue Loans from Customers and Factors Affecting Banks' Recovery Strategies. Advances in Economics, Management and Political Sciences,26,379-384.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

Conference website: https://2023.icmred.org/

ISBN：978-1-915371-95-9(Print) / 978-1-915371-96-6(Online)

Conference date: 28 April 2023

Editor：Javier Cifuentes-Faura, Canh Thien Dang

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.26

ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).