This research work intends to measure how bank-specific and macroeconomic determinants affect nonperforming loans among developed and developing countries. To achieve the objective dynamic Generalized Method of Moments (GMM) technique is used covering the period from 1995 to 2019, apart from using fixed and random tests for robustness checks.Findings suggest that the common macroeconomic and bank-specific factors which affect nonperforming loans among developed and developing countries are growth rate, inflation, interest rate, capital adequacy ratio, credit to deposit ratio, and bank credit to the private sector. Macroeconomic factors and bank-specific factors affecting only developing countries are household consumption, unemployment, and exchange rate, return on bank assets, bank asset to GDP, and bank credit to the government sector. These findings will help policymakers in better understanding the impact of various determinants on nonperforming loans. So that appropriate policies can be framed for reducing nonperforming among the developed and developing countries. 1 | INTRODUCTION Various financial crisis over the years has questioned the instability of banking structure and their direct relationship with economic disturbances (Agnello & Sousa, 2012). The global recession of 2008 shows that how banking and macroeconomic variables are interrelated and how a devastating change in one factor creates a vicious cycle and ultimately affected all the interlinked variables creating distress in financial and economic conditions. Since the U.S subprime crisis, studying banking health has become a key topic among most of the developed and developing countries (Khan, Siddique, & Sarwar, 2020). The bank plays a principal role in the economic prosperity of a country, as banks are the medium through which countries generate funds for investment opportunities. Studies show that banks of most developed and developing countries like India, Pakistan, Greece, Ukraine, Russia, Brazil, and other African countries are suffering from the problem of nonperforming loans, which is affecting their monetary decision and thus their economic growth (Khafid & Anisykurlillah, 2020).The economic conditions of developed countries are quite contrary to the developing countries due to better resources, technology, and other facilities. Similarly, banking conditions and resources also significantly differ among developed and developing countries. So, it is quite significant, to study how banking problems differ among developed and developing countries and how these countries are resolving such issues.Banking distress in the form of nonperforming loans may occur due to changing volatility in macroeconomic conditions like growth rate, unemployment, inflation, and interest rate (Nkusu, 2011). Studies like Llewellyn, 2002 andChaibi, 2016 have also pointed that along with macroeconomic conditions, bank or industry-specific variables like banks' working strategy, credit distribution mechanism, incentives appeasement policies, and excessive use of ban...