The impact of macroeconomic variables to non-performing loan in Malaysia

The rising of non-performing loans has been a concern in Malaysia as it is one of the factor that contributes to bankruptcy. This study therefore want to determine the relationship between selected macroeconomic variables and the non-performing loan in Malaysia. The macroeconomic variables that were used in this study are lending interest rate, inflation rate, unemployment rate, exchange rate and also gross domestic product. Meanwhile, the dependent variable used in this study was non-performing loans. Secondary data extracted from the Data Stream or Thompson Reuters in quarterly reviews for the period of 2010 to 2018 was analyzed by using E-views. A descriptive research design was adopted and summary statistics presented in tables. The result of the finding shows that only exchange rate variable is significant to non-performing loan.