Evaluating the Interaction of Bank Characteristics and Unexpected Crises on Nonperforming Loans in Malaysia

Over the last few decades, Malaysia has experienced a large number of nonperforming loans, which is accompanied by significant deterioration in banking system. The problem also arises when Malaysia’s economy been attacked sudden crises, literally distracts characteristics. Therefore, this study conducted to investigate impact bank characteristics and unexpected crises on loans commercial banks. Data from sixteen (16) banks spanning 2007 2020 are used. Panel data analysis utilized examine interaction between bank’s loans. finding reveals that influence through It discloses existence alongside may lead arising severity erodes confidence publicly serving as before leaves facing burden higher accumulation unperformed. Further, result suggests strict in-depth lending policy based current economic environment conditions must be provided ensure uniformity credit facilities.