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Non-performing loans (NPLs) could be one of the main reasons toward economic and financial instability in the most of the countries in this world. Therefore, this study attempts to discuss the factors that lead to the NPL and hence to see the implications toward bank performance. Many previous studies have solely focused on investigating the determinants of non-performing loans (NPLs) for conventional banks and it seems like there are lack of research were done for Islamic banks industries. According to the past studies, there are two main categories of the factors, which are macroeconomics factors, and bank-specific factors were mentioned as the major determinants of NPLs. By looking at both financial sectors which conventional and Islamic banking sectors, the implications of the NPLs will be find out and thus it aimed to model non-performing loans in a few Asian countries and later do a comparison across the model.
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In-Text Citation: (Zain & Ghazali, 2018)
To Cite this Article: Zain, E. N. B. M., & Ghazali, P. L. B. (2018). Non-performing loans and its implications toward Bank Performance: Comparison on Islamic and Conventional Banks. International Journal of Academic Research in Business and Social Sciences, 8(12), 528–537.
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