Types of loans and platform factors in relation to non-performing loans: evidence from Indonesia peer-to-peer lending

This study examines whether platform characteristics affect Non-performing loans (NPLs) in peer-to-peer (P2P) lending. This research helps regulators understand the regulatory framework for P2P lending platform expansion and investor decision-making. The dataset originated from 61 Indonesian platforms that were registered before and during the COVID-19 pandemic. It uses Generalized Least Squares panel regression and subsample analysis. This study shows that consumptive loans increase NPLs, and Small and Medium Enterprise loans decrease NPLs. The age of the Chief Executive Officer is linked to NPL for long-duration platforms, whereas a regulator's license is only significantly related to NPL for short-duration platforms.