The impact of non performing loans toward banks profitability: evidence from local banks in Malaysia / Zuraidah Taha

Aim of this study is to investigate and analyze the relationship between the non-performing loans towards the profitability of the local banks in Malaysia during 2007 to 2016. 9 local banks was selected for data collection and the whole data was a secondary data that collected from Thomson Reuters Data Stream. This study adopts panel regression model to measure the relationship between non-performing loans towards the profitability of the local banks in Malaysia and to test the operational hypotheses. The result of this study was revealed that the non-performing loans has significant positive relationship towards the return on assets and significant negative relationship towards the return on equity that used as the indicator for the profitability of the banks.