Abstract:

This paper describes of how Bank’s credit growth can affect the risk related to bank’s non-performing loan. In the context of this paper, the model used is the panel EGLS, which is suitable for research using lagged variables so that the influence of the previous period can be seen significantly. To take a deeper look at the effects of NPLs, using state variables can affects NPLs to be more specifically influences. To illustrate the effect of this approach, research was conducted based on banks listed on the Indonesia Stock Exchange (IDX)