Exploratory study on determinants of problem loan among non-bank financial institution in Malaysia

Problem loan (PL) deteriorates the NBFI performance as it can cause the firm to encounter financial distress. NBFI management and managers need to manage the lending activities properly to mitigate the problem loan from occurring by determining the factors that influence the PL. H...

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Main Authors: M. T., Hirnissa, Mohd Ashhari, Zariyawati, R., Fadilla
Format: Article
Language:English
Published: Academia Industry Networks 2020
Online Access:http://psasir.upm.edu.my/id/eprint/88903/1/ABSTRACT.pdf
http://psasir.upm.edu.my/id/eprint/88903/
https://myjms.mohe.gov.my/index.php/ajaf/article/view/9701
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spelling my.upm.eprints.889032021-11-03T05:47:41Z http://psasir.upm.edu.my/id/eprint/88903/ Exploratory study on determinants of problem loan among non-bank financial institution in Malaysia M. T., Hirnissa Mohd Ashhari, Zariyawati R., Fadilla Problem loan (PL) deteriorates the NBFI performance as it can cause the firm to encounter financial distress. NBFI management and managers need to manage the lending activities properly to mitigate the problem loan from occurring by determining the factors that influence the PL. Hence, this study is conducted to investigate the determinants of problem loan Malaysian NBFI for the period of 10 years which is from the year 2008 to the year 2017. The result Panel Data analysis shows that deposit growth and firm credit growth positively associated with problem loans. NBFI management of managers should consider deposit growth and firm credit growth while performing lending in creating income. This may be avoiding the bank to encounter financial distress and performance deterioration. Academia Industry Networks 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/88903/1/ABSTRACT.pdf M. T., Hirnissa and Mohd Ashhari, Zariyawati and R., Fadilla (2020) Exploratory study on determinants of problem loan among non-bank financial institution in Malaysia. Advanced Journal of Accounting and Finance, 2 (1). pp. 1-9. ISSN 2710-625X https://myjms.mohe.gov.my/index.php/ajaf/article/view/9701
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description Problem loan (PL) deteriorates the NBFI performance as it can cause the firm to encounter financial distress. NBFI management and managers need to manage the lending activities properly to mitigate the problem loan from occurring by determining the factors that influence the PL. Hence, this study is conducted to investigate the determinants of problem loan Malaysian NBFI for the period of 10 years which is from the year 2008 to the year 2017. The result Panel Data analysis shows that deposit growth and firm credit growth positively associated with problem loans. NBFI management of managers should consider deposit growth and firm credit growth while performing lending in creating income. This may be avoiding the bank to encounter financial distress and performance deterioration.
format Article
author M. T., Hirnissa
Mohd Ashhari, Zariyawati
R., Fadilla
spellingShingle M. T., Hirnissa
Mohd Ashhari, Zariyawati
R., Fadilla
Exploratory study on determinants of problem loan among non-bank financial institution in Malaysia
author_facet M. T., Hirnissa
Mohd Ashhari, Zariyawati
R., Fadilla
author_sort M. T., Hirnissa
title Exploratory study on determinants of problem loan among non-bank financial institution in Malaysia
title_short Exploratory study on determinants of problem loan among non-bank financial institution in Malaysia
title_full Exploratory study on determinants of problem loan among non-bank financial institution in Malaysia
title_fullStr Exploratory study on determinants of problem loan among non-bank financial institution in Malaysia
title_full_unstemmed Exploratory study on determinants of problem loan among non-bank financial institution in Malaysia
title_sort exploratory study on determinants of problem loan among non-bank financial institution in malaysia
publisher Academia Industry Networks
publishDate 2020
url http://psasir.upm.edu.my/id/eprint/88903/1/ABSTRACT.pdf
http://psasir.upm.edu.my/id/eprint/88903/
https://myjms.mohe.gov.my/index.php/ajaf/article/view/9701
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score 13.211869