The study found that capitaladequacy ratio had negative but insignificant association with non-

performing loans, while return on equity andloans to asset ratio had negative but significant effect on
NPLs, Their study also found that total loan and netinterest margin had positive significant relationship
with non-performing loans (NPLs).Ranjan and Chandra (2003) analyze the determinants of non-
performing loans (NPLs) of commercial banks inIndian, using panel regression model and they found
that lending rate has positive influence on non-performingloans (NPLs). This meant that higher interest
rate induced the changes in cost conditions to further fuel andincrease in non-performing loan (NPLs).
Similarly Vogiazas and Nikolaidou (2011) investigated thedeterminants of non- performing loans in the
Romanian banking sector during the Greek crisis for the period2001- 2010. Their findings indicated that
construction and investment expenditure, unemployment and inflationrate and the Romanians external
debt to GDP and M