FACTORS AFFECTING VOLUMES OF SMES LOANS IN LAMPHUN PROVINCE

Abstract

This research was conducted to explore what factors were affecting the volume of SMEs loans in Lamphun Province, Thailand. The aims of the study are to find out a guideline for the Government Savings Bank to cope with the changing situations internally and externally. As well as, it aims to develop its efficiency and effectiveness in terms of the customer service system and sustainable development. The secondary data, based on time series like a monthly data from January in 2014 to December 2017,  totaling  48 months are collected and analyzed. Relevant data are from SMEs loan data, Minimum Loan Rate (MLR) , Total deposits (TDS) , Non Performing Loans (NPL),  Minimum Loan Rate of commercial banks (MLR_other),  Federal Funds Target Rate (Policy), and The Private Consumption index (PCI), including data from the Bank of Thailand and other related documents. E-views Version 8 was applied to calculate a statistical  value  of each variable to determine the relation of the least square(Ordinary Least Square: OLS) with a multiple regression analysis)

The result, therefore, indicated that there was 1 factor  influencing  the volume of Government  Savings Bank’s SMEs loans in Lamphun Province;  private consumption index (PCI) which was varying within the same direction with a  confidence level at 95%. and it was agreeable with the assumption set.  Besides, it was found that there were no statistically significant differences in the other variables.