Macroeconomic traits as elements of non-performing loan/ Nurfilzah Arham

This study analyzed the relationship of NPL once the macroeconomics factors be varied and it showed how those factors affecting the NPL. This paper studied the determinants on Non-Performing Loan in Malaysia by observing their relationship through regression analysis. The data collected from 2010 to 2017 and the -macroeconomics factors are as follows; Gross Domestic Product (GDP), Exchange Rate, Inflation Rate, Unemployment Rate, Lending Rate and Total Loan or Credit on the NPL in Malaysia from 2010 to 2017. The results of this study hopefully will be used to tap the credit facilities in Malaysia. Few steps will be taken to reduce the NPL in Malaysia to reduce the probability of bankruptcies among bank or financial institutions or individual loan borrower. Results obtained from this research shows that Gross Domestic Product (GDP) has inverse relationship to the Non-Performing Loan and these other macroeconomics variables has positive relationship to the dependent variable.