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Macroeconomic determinants of non-performing loans in Malaysia / Husnizam Hosin, Mohd Azim Sardan, Juliana Mohamed Abdul Kadir and Yan-Ling Tan

This study examines the interplay between macroeconomic factors and Non-Performing Loans (NPLs) within the residential property sector, particularly focusing on commercial and Islamic banks in Malaysia from 2007 to 2021. NPLs, defined as loans overdue for more than 90 days, serve as an indicator of...

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Main Authors: Hosin, Husnizam, Sardan, Mohd Azim, Mohamed Abdul Kadir, Juliana, Tan, Yan-Ling
Format: Article
Language:English
Published: UiTM Cawangan Johor 2024
Subjects:
Economics
Credit. Debt. Loans
Online Access:https://ir.uitm.edu.my/id/eprint/110277/1/110277.pdf
https://ir.uitm.edu.my/id/eprint/110277/
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id my.uitm.ir.110277
record_format eprints
spelling my.uitm.ir.1102772025-02-25T09:25:04Z https://ir.uitm.edu.my/id/eprint/110277/ Macroeconomic determinants of non-performing loans in Malaysia / Husnizam Hosin, Mohd Azim Sardan, Juliana Mohamed Abdul Kadir and Yan-Ling Tan iij Hosin, Husnizam Sardan, Mohd Azim Mohamed Abdul Kadir, Juliana Tan, Yan-Ling Economics Credit. Debt. Loans This study examines the interplay between macroeconomic factors and Non-Performing Loans (NPLs) within the residential property sector, particularly focusing on commercial and Islamic banks in Malaysia from 2007 to 2021. NPLs, defined as loans overdue for more than 90 days, serve as an indicator of financial health and stability within the banking sector, which, in turn, impacts economic sustainability and environmental investment capacities. Utilizing the autoregressive distributed lag co-integration approach, this research identifies a significant co-integrating relationship between NPLsfor residential property and various macroeconomic determinants. The findings underscore that robust economic growth, coupled with reduced lending and unemployment rates, plays a pivotal role in mitigating the risks associated with NPLs, thereby fostering a more resilient and sustainable economic framework. The study contribute an insights that highlight the critical need for stable macroeconomic environments not only to curb NPLs in Malaysia's banking systems but also to enhance the overall sustainability of the financial sector. For long-term financial stability, banks are better positioned to finance sustainable development projects, thereby contributing to a more sustainable and resilient economic future. Keywords: Non-performing loans, residential property, macroeconomic determinants, Malaysia UiTM Cawangan Johor 2024 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/110277/1/110277.pdf Macroeconomic determinants of non-performing loans in Malaysia / Husnizam Hosin, Mohd Azim Sardan, Juliana Mohamed Abdul Kadir and Yan-Ling Tan. (2024) Insight Journal (IJ) <https://ir.uitm.edu.my/view/publication/Insight_Journal_=28IJ=29/>, 11. pp. 36-47. ISSN 2600-8564
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Economics
Credit. Debt. Loans
spellingShingle Economics
Credit. Debt. Loans
Hosin, Husnizam
Sardan, Mohd Azim
Mohamed Abdul Kadir, Juliana
Tan, Yan-Ling
Macroeconomic determinants of non-performing loans in Malaysia / Husnizam Hosin, Mohd Azim Sardan, Juliana Mohamed Abdul Kadir and Yan-Ling Tan
description This study examines the interplay between macroeconomic factors and Non-Performing Loans (NPLs) within the residential property sector, particularly focusing on commercial and Islamic banks in Malaysia from 2007 to 2021. NPLs, defined as loans overdue for more than 90 days, serve as an indicator of financial health and stability within the banking sector, which, in turn, impacts economic sustainability and environmental investment capacities. Utilizing the autoregressive distributed lag co-integration approach, this research identifies a significant co-integrating relationship between NPLsfor residential property and various macroeconomic determinants. The findings underscore that robust economic growth, coupled with reduced lending and unemployment rates, plays a pivotal role in mitigating the risks associated with NPLs, thereby fostering a more resilient and sustainable economic framework. The study contribute an insights that highlight the critical need for stable macroeconomic environments not only to curb NPLs in Malaysia's banking systems but also to enhance the overall sustainability of the financial sector. For long-term financial stability, banks are better positioned to finance sustainable development projects, thereby contributing to a more sustainable and resilient economic future. Keywords: Non-performing loans, residential property, macroeconomic determinants, Malaysia
format Article
author Hosin, Husnizam
Sardan, Mohd Azim
Mohamed Abdul Kadir, Juliana
Tan, Yan-Ling
author_facet Hosin, Husnizam
Sardan, Mohd Azim
Mohamed Abdul Kadir, Juliana
Tan, Yan-Ling
author_sort Hosin, Husnizam
title Macroeconomic determinants of non-performing loans in Malaysia / Husnizam Hosin, Mohd Azim Sardan, Juliana Mohamed Abdul Kadir and Yan-Ling Tan
title_short Macroeconomic determinants of non-performing loans in Malaysia / Husnizam Hosin, Mohd Azim Sardan, Juliana Mohamed Abdul Kadir and Yan-Ling Tan
title_full Macroeconomic determinants of non-performing loans in Malaysia / Husnizam Hosin, Mohd Azim Sardan, Juliana Mohamed Abdul Kadir and Yan-Ling Tan
title_fullStr Macroeconomic determinants of non-performing loans in Malaysia / Husnizam Hosin, Mohd Azim Sardan, Juliana Mohamed Abdul Kadir and Yan-Ling Tan
title_full_unstemmed Macroeconomic determinants of non-performing loans in Malaysia / Husnizam Hosin, Mohd Azim Sardan, Juliana Mohamed Abdul Kadir and Yan-Ling Tan
title_sort macroeconomic determinants of non-performing loans in malaysia / husnizam hosin, mohd azim sardan, juliana mohamed abdul kadir and yan-ling tan
publisher UiTM Cawangan Johor
publishDate 2024
url https://ir.uitm.edu.my/id/eprint/110277/1/110277.pdf
https://ir.uitm.edu.my/id/eprint/110277/
_version_ 1825165172369522688
score 13.244413

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