The impact of bank characteristics and unexpected crises on the nonperforming loans in Malaysia’s commercial banks / Normah Erra Zulkifli

Over the last few decades, Malaysia has experienced a large number of nonperforming loans, which is accompanied by a significant deterioration in the banking system. The problem also arises when Malaysia's economy had been attacked by the sudden crises, where it literally distracts the banking...

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Main Author:	Zulkifli, Normah Erra
Format:	Thesis
Language:	English
Published:	2022
Subjects:	Bank loans Bank credit Commercial loans
Online Access:	https://ir.uitm.edu.my/id/eprint/75744/1/75744.pdf
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id	my-uitm-ir.75744
record_format	uketd_dc
spelling	my-uitm-ir.757442023-04-04T00:36:17Z The impact of bank characteristics and unexpected crises on the nonperforming loans in Malaysia’s commercial banks / Normah Erra Zulkifli 2022 Zulkifli, Normah Erra Bank loans. Bank credit. Commercial loans General works. Financial institutions Over the last few decades, Malaysia has experienced a large number of nonperforming loans, which is accompanied by a significant deterioration in the banking system. The problem also arises when Malaysia's economy had been attacked by the sudden crises, where it literally distracts the banking characteristics. Therefore, this study is conducted to investigate the impact of the bank characteristics and unexpected crises on the nonperforming loans in Malaysia's commercial banks. To determine the impact of bank characteristics and unexpected crises, data from sixteen (16) commercial banks spanning from the period of 2007 to 2020 are used. Panel data analysis is utilized to test the two constructed models (with and without interaction between bank characteristics and unexpected crises). Finding for Model 1 indicates the bank characteristics of loan growth, return on asset, and loan to asset are found to give a significant impact on the nonperforming loans except for non-interest income. In the case of unexpected crises, this model also reveals that changes in the bank's nonperforming loans had been contributed by the significant effect of unexpected crises. Meanwhile, Model 2 discloses that loan growth, return on asset, and non-interest income significantly relate to the problem of nonperforming loans exceptionally for loan to asset. As major highlights in this study, the inclusion of interaction of unexpected crises through bank characteristics exposes those changes in the loan growth, return on asset, and non-interest income that resulting from the unexpected crises which could lead to the changes in the number of nonperforming loans in Malaysia's commercial banks. Therefore, the study suggests that a strict and in-depth lending policy based on the current economic environment and conditions must be provided to ensure uniformity in the credit facilities. 2022 Thesis https://ir.uitm.edu.my/id/eprint/75744/ https://ir.uitm.edu.my/id/eprint/75744/1/75744.pdf text en public masters Universiti Teknologi MARA (UiTM) Faculty of Business and Management Ahmad, Zuriyati
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Ahmad, Zuriyati
topic	Bank loans Bank credit Commercial loans Bank loans Bank credit Commercial loans
spellingShingle	Bank loans Bank credit Commercial loans Bank loans Bank credit Commercial loans Zulkifli, Normah Erra The impact of bank characteristics and unexpected crises on the nonperforming loans in Malaysia’s commercial banks / Normah Erra Zulkifli
description	Over the last few decades, Malaysia has experienced a large number of nonperforming loans, which is accompanied by a significant deterioration in the banking system. The problem also arises when Malaysia's economy had been attacked by the sudden crises, where it literally distracts the banking characteristics. Therefore, this study is conducted to investigate the impact of the bank characteristics and unexpected crises on the nonperforming loans in Malaysia's commercial banks. To determine the impact of bank characteristics and unexpected crises, data from sixteen (16) commercial banks spanning from the period of 2007 to 2020 are used. Panel data analysis is utilized to test the two constructed models (with and without interaction between bank characteristics and unexpected crises). Finding for Model 1 indicates the bank characteristics of loan growth, return on asset, and loan to asset are found to give a significant impact on the nonperforming loans except for non-interest income. In the case of unexpected crises, this model also reveals that changes in the bank's nonperforming loans had been contributed by the significant effect of unexpected crises. Meanwhile, Model 2 discloses that loan growth, return on asset, and non-interest income significantly relate to the problem of nonperforming loans exceptionally for loan to asset. As major highlights in this study, the inclusion of interaction of unexpected crises through bank characteristics exposes those changes in the loan growth, return on asset, and non-interest income that resulting from the unexpected crises which could lead to the changes in the number of nonperforming loans in Malaysia's commercial banks. Therefore, the study suggests that a strict and in-depth lending policy based on the current economic environment and conditions must be provided to ensure uniformity in the credit facilities.
format	Thesis
qualification_level	Master's degree
author	Zulkifli, Normah Erra
author_facet	Zulkifli, Normah Erra
author_sort	Zulkifli, Normah Erra
title	The impact of bank characteristics and unexpected crises on the nonperforming loans in Malaysia’s commercial banks / Normah Erra Zulkifli
title_short	The impact of bank characteristics and unexpected crises on the nonperforming loans in Malaysia’s commercial banks / Normah Erra Zulkifli
title_full	The impact of bank characteristics and unexpected crises on the nonperforming loans in Malaysia’s commercial banks / Normah Erra Zulkifli
title_fullStr	The impact of bank characteristics and unexpected crises on the nonperforming loans in Malaysia’s commercial banks / Normah Erra Zulkifli
title_full_unstemmed	The impact of bank characteristics and unexpected crises on the nonperforming loans in Malaysia’s commercial banks / Normah Erra Zulkifli
title_sort	impact of bank characteristics and unexpected crises on the nonperforming loans in malaysia’s commercial banks / normah erra zulkifli
granting_institution	Universiti Teknologi MARA (UiTM)
granting_department	Faculty of Business and Management
publishDate	2022
url	https://ir.uitm.edu.my/id/eprint/75744/1/75744.pdf
_version_	1783736078871560192

The impact of bank characteristics and unexpected crises on the nonperforming loans in Malaysia’s commercial banks / Normah Erra Zulkifli

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