The impact of macroeconomic on non-performing loan: evidence from Malaysia country

The volatility of macroeconomic performance becoming threats to the performance on Non-Performing Loans within financial institutions (NPL). This study aims to examine the macroeconomic factors (inflation rate, interest rate and gross domestic) that influence the performance of banks' NPL within period of 2010 and 2020. This study used multiple linear regression analysis to identify the relationship between independent variables and dependent variable. The estimation shows that macroeconomic factors. The-Findings from analysis reveals, in banks NPL performance is affected from interest rate, inflation rate, and not from gross domestic product (GDP). Thus, there is possibility in Malaysia case, factors from industrial performance and bank specific factors are leading indicators for NPL.