Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan

When banks are considered fragile and what trigger them to be fragile? This research attempts to answer those questions by measuring bank fragility and identify probable factors determining bank fragility of the Malaysian commercial banking sector during the period of 1996-2011. Previous studies hav...

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Main Author:	Mazlan, Nurul Farhana
Format:	Thesis
Language:	English
Published:	2014
Subjects:	Bank loans Bank credit Commercial loans
Online Access:	https://ir.uitm.edu.my/id/eprint/14286/1/TM_NURUL%20FARHANA%20MAZLAN%20BM%2014_5.pdf
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id	my-uitm-ir.14286
record_format	uketd_dc
spelling	my-uitm-ir.142862022-04-01T08:17:01Z Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan 2014-11 Mazlan, Nurul Farhana Bank loans. Bank credit. Commercial loans Bank reserves. Bank liquidity. Loan loss reserves When banks are considered fragile and what trigger them to be fragile? This research attempts to answer those questions by measuring bank fragility and identify probable factors determining bank fragility of the Malaysian commercial banking sector during the period of 1996-2011. Previous studies have employed different methods to measure the bank fragility. Among the methods used are event study, "government intervention" in term of liquidity support to detect bank fragility and some prefers to use indicator such as Non-Performing Loan (NPL) to identify bank systemic risk. This research constructs the Banking Sector Fragility Index (BSFI) to measure fragility of commercial bank during the period studied. The index is then used to identify the determinants of commercial bank fragility. Results of BSFI show that the commercial banking sectors are in fragile condition from 1996 until 2000 and in a highly fragile stage between 1996 and 1998 since the BSFI are less than -0.50. In addition, findings based on the Logit regression analysis infer that the likelihood of Malaysian commercial banks to be fragile is significantly determined by total loans to total assets and interbank rate. While, Pooled Ordinary Least Squares (OLS) proved that bank specific factors and macro-economic factors have relationship with the level of BSFI. 2014-11 Thesis https://ir.uitm.edu.my/id/eprint/14286/ https://ir.uitm.edu.my/id/eprint/14286/1/TM_NURUL%20FARHANA%20MAZLAN%20BM%2014_5.pdf text en public mphil masters Universiti Teknologi MARA Faculty of Business Management Ahmad, Noryati (Assoc. Prof. Dr.) Jaafar, Norlida (Dr.) Ahmad, Ismail (Prof. Dr.) Salamuddin, Norhana (Prof. Dr.)
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Ahmad, Noryati (Assoc. Prof. Dr.) Jaafar, Norlida (Dr.) Ahmad, Ismail (Prof. Dr.) Salamuddin, Norhana (Prof. Dr.)
topic	Bank loans Bank credit Commercial loans Bank loans Bank credit Commercial loans
spellingShingle	Bank loans Bank credit Commercial loans Bank loans Bank credit Commercial loans Mazlan, Nurul Farhana Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
description	When banks are considered fragile and what trigger them to be fragile? This research attempts to answer those questions by measuring bank fragility and identify probable factors determining bank fragility of the Malaysian commercial banking sector during the period of 1996-2011. Previous studies have employed different methods to measure the bank fragility. Among the methods used are event study, "government intervention" in term of liquidity support to detect bank fragility and some prefers to use indicator such as Non-Performing Loan (NPL) to identify bank systemic risk. This research constructs the Banking Sector Fragility Index (BSFI) to measure fragility of commercial bank during the period studied. The index is then used to identify the determinants of commercial bank fragility. Results of BSFI show that the commercial banking sectors are in fragile condition from 1996 until 2000 and in a highly fragile stage between 1996 and 1998 since the BSFI are less than -0.50. In addition, findings based on the Logit regression analysis infer that the likelihood of Malaysian commercial banks to be fragile is significantly determined by total loans to total assets and interbank rate. While, Pooled Ordinary Least Squares (OLS) proved that bank specific factors and macro-economic factors have relationship with the level of BSFI.
format	Thesis
qualification_name	Master of Philosophy (M.Phil.)
qualification_level	Master's degree
author	Mazlan, Nurul Farhana
author_facet	Mazlan, Nurul Farhana
author_sort	Mazlan, Nurul Farhana
title	Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
title_short	Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
title_full	Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
title_fullStr	Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
title_full_unstemmed	Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
title_sort	determinants of bank fragility: evidence from malaysian commercial banks / nurul farhana mazlan
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Business Management
publishDate	2014
url	https://ir.uitm.edu.my/id/eprint/14286/1/TM_NURUL%20FARHANA%20MAZLAN%20BM%2014_5.pdf
_version_	1783733246125670400

Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan

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