Inability of the banks to monitor the loan properly and efficiently might cause a tendency of nonperforming loans to keep rising in the banking system. This will indicate the failure of banks in managing their performance and operations. The involvement of banks in providing aggressive lending without following the proper credit assessment and negotiated credit terms when dealing with the activities can contributes to the severity of the problem of nonperforming loans in Malaysia. Therefore, this descriptive study is aimed to analyze the trend and issues of nonperforming loans in Malaysia's commercial banks. Using a descriptive method, diagram analysis, discussion and issues are used to support the study. Finding of the study indicates that bank characteristics and economic condition especially during the crises can contribute to the increasing amount of nonperforming loans in Malaysia's commercial banks. It is suggested for the banking sector to focus on the internal bank characteristics to strengthen the commercial banks and the government need to increase the stability of macroeconomic conditions to avoid the problems during the unexpected crisis. In the future research, empirical study can be done to investigate the impact of the issues on the non performing loans.

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