Zombie Banks, Competition, and the Deterioration of Credit Quality: Evidence from Rural Bank-Level NPL Dynamics in Indonesia

In recent years, the presence of zombie banks has become a significant concern in maintaining the stability of the banking system, particularly within the rural banking sector in Indonesia. This study examines how zombie banks affect credit quality and explores the role of market competition and regional economic growth in shaping this relationship. Using bank-level panel data and a fixed effects approach, this research analyzes the dynamics of non-performing loans (NPLs), both in terms of their...