In this research, the direct impact of the three ownership structure (government, institutional and family) on bank risk takings measured by Z-Score is to be investigated. This is based on the Z-Score formulation that is used is based on the context that fits for Malaysia as one of the emerging markets. This research also investigates the impact of the ownership structure with capital adequacy ratio as the moderating element towards bank risk taking as measured by Z-

Purpose-The purpose of this research is to examine the factors influencing non-performing loans (NPLs) ratio for Malaysian commercial banks from the period 2010 to 2018. Methodology-Bank-specific factors and macroeconomic factors were included in the analysis. Using panel data of fifteen commercial banks in Malaysia. Findings-The finding reveals that capital adequacy ratio is a significant factor in influencing the sample banks' level of non-performing loans. All other bank-specific factors employed in the analysis were found to be insignificant. In addition, based on the results provided by real gross domestic products and inflation, we can conclude that economic situation does not impact the non-performing loans level of the sample commercial banks. Conclusion-It has been concluded that the loan quality of the sample bank is questionable. In order to ensure an effective operating and high performance of banks, banks require a deep concentration on their loan quality that would not only generate income, but also minimize negative and ineffective outcome to the banks. In addition, this study can be valuable to supervisory authorities, governments, and the banking industries in forecasting non-performing loans as this study shows the determinants that shape the level of Non-performing loans.

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