The determinants of credit risk of 9 selected banks listed on Bursa Malaysia /Nur Afiqah Ridzuan

• Main Author: Ridzuan, Nur Afiqah
• Format: Student Project
• Language: English
• Published: Faculty of Business and Management 2019
• Subjects: Banking; Bank loans. Bank credit. Commercial loans; Credit. Debt. Loans
• Online Access: http://ir.uitm.edu.my/id/eprint/23368/1/PP_NURAFIQAH%20RIDZUAN%20BM%20T%2019_5.pdf; http://ir.uitm.edu.my/id/eprint/23368/

The aim of this study is to investigate the determinants of credit risk of 9 selected banks listed on Bursa Malaysia. 9 financial report of the banks listed on Bursa Malaysia were used to analyse for 14 years (2004 -2017). Pooled OLS Regression Model has been selected to investigate the relationship between return on assets, capital adequacy ratio, loan loss provisions, debt-to-equity ratio and bank size with non-performing loan as credit risk indicator. The finding is only loan loss provision is positively significant with credit risk whereas the capital adequacy ratio, debt-to-equity ratio and bank size are negative significant toward credit risk. On the other hand, only a variable positive insignificant relationship with credit risk which is return on assets.