Analysis of non-performing loans among RHB Bank Berhad, Maybank Berhad and CIMB Bank Berhad in Malaysia / Nurulain Syahirah Zaidi

This study observed about the factors that influence the non-performing loan of commercial banks in Malaysia. Increase in non-performing loan can give bad impact to the profitability of the commercial bank. This study aims to analysis of non-performing loan among RHB Bank, Maybank and CIMB Bank and its relationship with the determinants as well as to determine the most significant factors that influence the non-performing loan. It influenced by the variables which include interest rate, inflation and gross domestic product. The data collected from 2008 until 2018 based on the annual report of 3 commercial bank in Malaysia. The study shows that all independent variables; inflation, interest rate and gross domestic product have negative relationship with the non-performing loan. Inflation and interest rate are significant with the non-performing loan at 5% significant level. For gross domestic product is significant at the level 10%. In conclusion, the commercial bank must make a correct decision making on their profit which can influence their daily revenue. A wrong decision making will give negative impacts for their profit.