The implication of macroeconomic variables towards non-performing loan in Malaysia / Fatin Adlina Mohd Kamsah

This paper is primarily interested in examining the economic effect on the Malaysian non-performing loan from the year 2007 to 2017. A specific question that is addressed in this study is whether the macroeconomic variables affect the performance of non-performing loans. Hence, the independent varia...

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Main Author: Mohd Kamsah, Fatin Adlina
Format: Thesis
Language:English
Published: 2022
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Online Access:https://ir.uitm.edu.my/id/eprint/102058/1/102058.pdf
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spelling my-uitm-ir.1020582024-10-29T09:52:33Z The implication of macroeconomic variables towards non-performing loan in Malaysia / Fatin Adlina Mohd Kamsah 2022 Mohd Kamsah, Fatin Adlina Macroeconomics Interest rates This paper is primarily interested in examining the economic effect on the Malaysian non-performing loan from the year 2007 to 2017. A specific question that is addressed in this study is whether the macroeconomic variables affect the performance of non-performing loans. Hence, the independent variables that were chosen in this study are gross domestic product (GDP), tax revenue (TR), interest rate (IR) and foreign direct investment (FDI) while the performance of non-performing loans would be the dependent variable. This paper utilised the Ordinary Least Squares (OLS) regression method in determining the significance of the independent variables in causing the increasing number of non-performing loans. The correlation test, multicollinearity test, normality test and regression analysis were also employed in order to discover the properties of data collected from The World Bank and Trading Economics. Overall, the results have found that GDP, TR, IR and FDI have a significant relationship with the non-performing loan in Malaysia.. Thus, the finding assists the financial institutions to take actions on the number of non-performing loans. 2022 Thesis https://ir.uitm.edu.my/id/eprint/102058/ https://ir.uitm.edu.my/id/eprint/102058/1/102058.pdf text en public degree Universiti Teknologi MARA, Johor Faculty of Business and Management Md Lazan, Rohanizan
institution Universiti Teknologi MARA
collection UiTM Institutional Repository
language English
advisor Md Lazan, Rohanizan
topic Macroeconomics
Interest rates
spellingShingle Macroeconomics
Interest rates
Mohd Kamsah, Fatin Adlina
The implication of macroeconomic variables towards non-performing loan in Malaysia / Fatin Adlina Mohd Kamsah
description This paper is primarily interested in examining the economic effect on the Malaysian non-performing loan from the year 2007 to 2017. A specific question that is addressed in this study is whether the macroeconomic variables affect the performance of non-performing loans. Hence, the independent variables that were chosen in this study are gross domestic product (GDP), tax revenue (TR), interest rate (IR) and foreign direct investment (FDI) while the performance of non-performing loans would be the dependent variable. This paper utilised the Ordinary Least Squares (OLS) regression method in determining the significance of the independent variables in causing the increasing number of non-performing loans. The correlation test, multicollinearity test, normality test and regression analysis were also employed in order to discover the properties of data collected from The World Bank and Trading Economics. Overall, the results have found that GDP, TR, IR and FDI have a significant relationship with the non-performing loan in Malaysia.. Thus, the finding assists the financial institutions to take actions on the number of non-performing loans.
format Thesis
qualification_level Bachelor degree
author Mohd Kamsah, Fatin Adlina
author_facet Mohd Kamsah, Fatin Adlina
author_sort Mohd Kamsah, Fatin Adlina
title The implication of macroeconomic variables towards non-performing loan in Malaysia / Fatin Adlina Mohd Kamsah
title_short The implication of macroeconomic variables towards non-performing loan in Malaysia / Fatin Adlina Mohd Kamsah
title_full The implication of macroeconomic variables towards non-performing loan in Malaysia / Fatin Adlina Mohd Kamsah
title_fullStr The implication of macroeconomic variables towards non-performing loan in Malaysia / Fatin Adlina Mohd Kamsah
title_full_unstemmed The implication of macroeconomic variables towards non-performing loan in Malaysia / Fatin Adlina Mohd Kamsah
title_sort implication of macroeconomic variables towards non-performing loan in malaysia / fatin adlina mohd kamsah
granting_institution Universiti Teknologi MARA, Johor
granting_department Faculty of Business and Management
publishDate 2022
url https://ir.uitm.edu.my/id/eprint/102058/1/102058.pdf
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