PRACTICE FOR DECREASE DEBTS OF NON-PERFORMING LOAN OF GOVERNMENT SAVINGS BANK

Abstract

This study has the objectives to study the problems and causes of the problems that raised the debt of NPL for Government Savings Bank. The study found out that the most significant factors affecting loan repayments were the entrepreneurs’ business income, expenses, liabilities and liquidity. The secondary factors were concerning the business environment, including the economy status, the number of competitors, price of oil and consumer goods. And the third were the factors from the bank, including amount of payment installments, period of loan and financial amount. The problems and the obstacles in small business loan repayments feature the factors from entrepreneurs, commercial banks and business environments. The important entrepreneurs’ problems were business losses, economic recession, increase of family allowances and business expenditure, amount of payment installments and loan misappropriations. Therefore, the banks should emphasize all of these factors, especially the factors from the entrepreneurs, which were business income, expenses, liabilities, and liquidity. That would protect and develop the debtors for not to make a debt that would not cause the long term income efficiency.