This study investigates the factors that affect the credit risk in banking and finance companies in Malaysia post 2008-2009 financial crisis. Since the nature of banking business relies on the process of lending, the credit risk becomes an essential risk of the business. Results of panel data multiple regression analysis conducted over a sample of 53 banks for a period of 2 years (2010-2011), indicates that the credit risk is affected by ratio of net loans to total asset (positively), liquid assets (positively), cost to income ratio (negatively), and total capital ratio (negatively). Regulators may use these measures to monitor or control the credit risk level of banks