Non-performing loan, sizes of bank and per capita gross domestic product affecting bank's profitability performance in the case of Asian countries; Malaysia and Thailand / Siti Suhaila Masri

Commercial banks have a crucial role for the allocation of economic resources in the Asian countries. Their main contribution is in the economic growth of the country through making available the funds for investors to borrow well as financial deepening in the country. A study of determinants of bank’s profitability performance on the non-performing loan, banks sizes and also the economic growth is to forecast and deal the uncertainty of the globalized environment. By using a study of 12 commercial banks in two countries, in time period of time 2007-2016 (10 years) he issue of the determinants of banks profitability is studied by different authors and academic and the purpose of this study is to investigate the profitability performance behaviour of bank-specific and macroeconomic variable. The primary objective is to investigate the determinants of the profitability and to debates through the literature review on these issues. This study shows that, the profitability of banks and commercial banks in both Malaysia and Thailand are mostly affected by bank-specific determinants. NPL have an insignificantly negative impact towards ROA, and the other two variables, banks sizes and GDP has a significantly positive impact on this study.