The Study on Factors That Influencing Banks' Non-Performing Loans in Malaysia

2019 International Journal of Engineering and Advanced Technology  
The financial institution has played an important role to ensures macroeconomic stability in various economic sector. The effective and efficient performance in banking sector has contributed as an indicator of financial stability in any country. Non-performing advances have turned into the primary worry in research the factors that affecting the expansion of banks' non-performing advances in Malaysia. The main objective of the study is to study the factors that influence the bank's
more » ... bank's non-performing loans (credits) in Malaysia. The three main factors studied are inflation, unemployment and interest rate. The secondary data from the Bank Negara Malaysia and CEIC Data. All the banks in Malaysia was included for the study. The time period was for ten years between the year 2009 – 2018. The results generated show consistency with the empirical studies and some contrary with the theories and finding of other researcher as well. The findings have shown the factors such as inflation, unemployment and interest rate has an influence in increasing the non-performing loans
doi:10.35940/ijeat.e1183.0585c19 fatcat:3ikkw3zeivg3xnedthvvysceti