Journal of Humanities, Language, Culture and Business (HLCB) Vol. 1: No. 5 (September 2017) page 34-40 | www.icohlcb.com | eISSN: 01268147 34 BANK EFFICIENCIES AND NON-PERFORMING LOAN OF COMMERCIAL BANKS IN MALAYSIA Noraini Ismail 1 Nur Damia Afiqah Azlan 2 Maizaitulaidawati Md Husin 3 Izzaamirah Ishak 4 Sahaida Laily Md Hashim 5 Abstract Paper examines the impacts of bank efficiencies towards Non-Performing Loan (NPL) of commercial banks in Malaysia during the period of 2008 until 2015. The data consists of 7 local commercial banks in Malaysia namely Hong Leong Bank Bhd, Malayan Banking Berhad, RHB Bank, CIMB Bank, Public Bank, Affin Bank and Ambank (M) Berhad. Regression Analysis method is used to test five hypotheses regarding the impacts of return on assets, loan of assets, provision loan and losses, bank size and non-interest income towards NPL. In total, return on assets was found to be not giving any significant impacts towards NPL. While for loan of assets and bank size were found to be negatively significant impacts towards NPL. However, for provision loan and losses and non-interest income, they were both gave positively significant impacts towards NPL. The finding clearly indicates that an increase in bank efficiencies decreases NPL. Keywords: Non-Performing Loan, bank efficiencies, local commercial banks 2017 JHLCB 1 College of Business Management and Accounting, Universiti Tenaga Nasional, 26700 Muadzam Shah, Pahang, Tel: +6094552020 E-mail: Ainis@uniten.edu.my 2 College of Business Management and Accounting, Universiti Tenaga Nasional, 26700 Muadzam Shah, Pahang, Tel: +6094552020 E-mail: damiaazlan95@gmail.com 3 International Business School, Universiti Teknologi Malaysia, 54100 Kuala Lumpur, Tel: +60321805048 E- mail: maizaitulaidawati@gmail.com 4 College of Business Management and Accounting, Universiti Tenaga Nasional, 26700 Muadzam Shah, Pahang, Tel: +6094552020 E-mail: Izza@uniten.edu.my 5 College of Business Management and Accounting, Universiti Tenaga Nasional, 26700 Muadzam Shah, Pahang, Tel: +6094552020 E-mail: Sahaida@uniten.edu.my Introduction