The determinants of Small Medium Enterprise (SME) financing by local commercial and Islamic banks in Malaysia / Muhammad Aiman Muhamad Zalaluddin

The research is conducted to study the irregularity in amount of financial supply by the local commercial and Islamic banks toward the small medium enterprise (SME) in Malaysia. The financing trends are uneven every year and differently from each bank to another. It gives problem towards the entrepr...

Full description

Saved in:

Bibliographic Details
Main Author:	Muhamad Zalaluddin, Muhammad Aiman
Format:	Thesis
Language:	English
Published:	2018
Subjects:	Malaysia
Online Access:	https://ir.uitm.edu.my/id/eprint/92254/1/92254.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uitm-ir.92254
record_format	uketd_dc
spelling	my-uitm-ir.922542024-03-12T01:17:38Z The determinants of Small Medium Enterprise (SME) financing by local commercial and Islamic banks in Malaysia / Muhammad Aiman Muhamad Zalaluddin 2018 Muhamad Zalaluddin, Muhammad Aiman Malaysia The research is conducted to study the irregularity in amount of financial supply by the local commercial and Islamic banks toward the small medium enterprise (SME) in Malaysia. The financing trends are uneven every year and differently from each bank to another. It gives problem towards the entrepreneurs to gain financial access in order to expand their business. This will inhibit the development of SME sectors and indirectly affecting the GDP growth in Malaysia. Panel data analysis was conducted from 110 observations throughout 10 local banks in Malaysia which comprised of Islamic and commercial banks. The time frames of observation are from 2006 until 2016. The study seeks the relationship of bank internal characteristics and macroeconomics factors towards SME financing in Malaysia. The findings show that bank internal characteristics which comprise of bank size, bank liquidity and bank credit risk has positive relationship with SME lending. While for macroeconomic factors, GDP and interest rate were both show negative coefficient result which indicate adverse relationship with SME financing. Yet the variables that yield significant result in this study are only bank size, credit risk and GDP. Thus in order to enhance the financial access among SME in Malaysia, the government should promote awareness on benefit of investing towards SME and its contributions for GDP. The banks performance also needs to be strengthen in order to have better small medium business lending. To reflect the situation of SME financing more accurately, future research can be done by including government owned bank and non-bank financial institutions into the scope of study. Multiple countries research also can be done to compare the result in order to evaluate the level of SME financing in Malaysia among other country. 2018 Thesis https://ir.uitm.edu.my/id/eprint/92254/ https://ir.uitm.edu.my/id/eprint/92254/1/92254.pdf text en public degree Universiti Teknologi MARA, Terengganu Faculty Of Business Management Ahmad, Zuriyati
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Ahmad, Zuriyati
topic	Malaysia
spellingShingle	Malaysia Muhamad Zalaluddin, Muhammad Aiman The determinants of Small Medium Enterprise (SME) financing by local commercial and Islamic banks in Malaysia / Muhammad Aiman Muhamad Zalaluddin
description	The research is conducted to study the irregularity in amount of financial supply by the local commercial and Islamic banks toward the small medium enterprise (SME) in Malaysia. The financing trends are uneven every year and differently from each bank to another. It gives problem towards the entrepreneurs to gain financial access in order to expand their business. This will inhibit the development of SME sectors and indirectly affecting the GDP growth in Malaysia. Panel data analysis was conducted from 110 observations throughout 10 local banks in Malaysia which comprised of Islamic and commercial banks. The time frames of observation are from 2006 until 2016. The study seeks the relationship of bank internal characteristics and macroeconomics factors towards SME financing in Malaysia. The findings show that bank internal characteristics which comprise of bank size, bank liquidity and bank credit risk has positive relationship with SME lending. While for macroeconomic factors, GDP and interest rate were both show negative coefficient result which indicate adverse relationship with SME financing. Yet the variables that yield significant result in this study are only bank size, credit risk and GDP. Thus in order to enhance the financial access among SME in Malaysia, the government should promote awareness on benefit of investing towards SME and its contributions for GDP. The banks performance also needs to be strengthen in order to have better small medium business lending. To reflect the situation of SME financing more accurately, future research can be done by including government owned bank and non-bank financial institutions into the scope of study. Multiple countries research also can be done to compare the result in order to evaluate the level of SME financing in Malaysia among other country.
format	Thesis
qualification_level	Bachelor degree
author	Muhamad Zalaluddin, Muhammad Aiman
author_facet	Muhamad Zalaluddin, Muhammad Aiman
author_sort	Muhamad Zalaluddin, Muhammad Aiman
title	The determinants of Small Medium Enterprise (SME) financing by local commercial and Islamic banks in Malaysia / Muhammad Aiman Muhamad Zalaluddin
title_short	The determinants of Small Medium Enterprise (SME) financing by local commercial and Islamic banks in Malaysia / Muhammad Aiman Muhamad Zalaluddin
title_full	The determinants of Small Medium Enterprise (SME) financing by local commercial and Islamic banks in Malaysia / Muhammad Aiman Muhamad Zalaluddin
title_fullStr	The determinants of Small Medium Enterprise (SME) financing by local commercial and Islamic banks in Malaysia / Muhammad Aiman Muhamad Zalaluddin
title_full_unstemmed	The determinants of Small Medium Enterprise (SME) financing by local commercial and Islamic banks in Malaysia / Muhammad Aiman Muhamad Zalaluddin
title_sort	determinants of small medium enterprise (sme) financing by local commercial and islamic banks in malaysia / muhammad aiman muhamad zalaluddin
granting_institution	Universiti Teknologi MARA, Terengganu
granting_department	Faculty Of Business Management
publishDate	2018
url	https://ir.uitm.edu.my/id/eprint/92254/1/92254.pdf
_version_	1794192269364953088

The determinants of Small Medium Enterprise (SME) financing by local commercial and Islamic banks in Malaysia / Muhammad Aiman Muhamad Zalaluddin

Similar Items