The objective of this research is to determine the macroeconomic factors that have a significant influence towards credit risk in both conventional and islamic banking institutions that are being proxied by Non-performing loan (NPL) and Non-performing financing (NPF). The chosen macroeconomic factors include Consumer Price Index (CPI) and Inflation rate. The study is conducted by employing quarterly datasets of NPL and NPF of all banking institutions listed on Bank Negara Malaysia (BNM), and CPI that is also included in the BNM database. The commencement date of the data is June 2010, until June 2022 which results in 49 observations. The data analysis model that was adopted in this study is Ordinary Least Squares (OLS). The outcome of this study suggested that CPI has a negatively significant relationship with both NPL and NPF. On the other hand, inflation rate has an insignificant relationship with both NPL and NPF.