The factors that influence interest rate spread of micro finance institution in Malaysia / Najwa Mohd Zakaria

The paper empirically investigates the determinants of interest rate spread in Malaysia banking sector based on panel data analysis and also to determine the most significant factors affecting interest rate spread. The findings show that bank-specific factors play a significant role in the determina...

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Main Author:	Mohd Zakaria, Najwa
Format:	Thesis
Language:	English
Published:	2020
Subjects:	Commercial credit Commercial loans Credit management
Online Access:	https://ir.uitm.edu.my/id/eprint/93716/1/93716.pdf
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id	my-uitm-ir.93716
record_format	uketd_dc
spelling	my-uitm-ir.937162024-04-11T23:39:28Z The factors that influence interest rate spread of micro finance institution in Malaysia / Najwa Mohd Zakaria 2020 Mohd Zakaria, Najwa Commercial credit. Commercial loans. Credit management The paper empirically investigates the determinants of interest rate spread in Malaysia banking sector based on panel data analysis and also to determine the most significant factors affecting interest rate spread. The findings show that bank-specific factors play a significant role in the determination of interest rate spreads. These include loan loss provision, return on assets, operating costs and return on equity, this entire variable has positively influence interest rate spreads. On the other hand, return on asset ratio and bank size has a negative effect on the spreads. On average, big banks have higher spreads compared to small banks. This study used a qualitative research which involved collecting data from annual report of all Micro Finance Institutions in Malaysia from year 2008 until 2017. The method used to analyses the data of this research is Ordinary Least Square (OLS) regression because this research only conducted in Malaysia. The collected data were analysed by using Stata version 10 in order to get the end result.The findings indicate that the Panel Pooled (OLS) model as a preferable model after conducting data analysis comparison between Panel Pooled (OLS) and Panel Random Effect. The outcomes of this research study summarized that two independent variables which are loan loss provision and bank size have a significant relationship with interest rate spread. The other three independent variables namely return on asset, return on equity and operating cost show insignificant relationship towards interest rate spread. As a result, the research objective of this study had been achieved. 2020 Thesis https://ir.uitm.edu.my/id/eprint/93716/ https://ir.uitm.edu.my/id/eprint/93716/1/93716.pdf text en public degree Universiti Teknologi MARA, Terengganu Faculty Of Business Management Affandi, Salwani
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Affandi, Salwani
topic	Commercial credit Commercial loans Credit management
spellingShingle	Commercial credit Commercial loans Credit management Mohd Zakaria, Najwa The factors that influence interest rate spread of micro finance institution in Malaysia / Najwa Mohd Zakaria
description	The paper empirically investigates the determinants of interest rate spread in Malaysia banking sector based on panel data analysis and also to determine the most significant factors affecting interest rate spread. The findings show that bank-specific factors play a significant role in the determination of interest rate spreads. These include loan loss provision, return on assets, operating costs and return on equity, this entire variable has positively influence interest rate spreads. On the other hand, return on asset ratio and bank size has a negative effect on the spreads. On average, big banks have higher spreads compared to small banks. This study used a qualitative research which involved collecting data from annual report of all Micro Finance Institutions in Malaysia from year 2008 until 2017. The method used to analyses the data of this research is Ordinary Least Square (OLS) regression because this research only conducted in Malaysia. The collected data were analysed by using Stata version 10 in order to get the end result.The findings indicate that the Panel Pooled (OLS) model as a preferable model after conducting data analysis comparison between Panel Pooled (OLS) and Panel Random Effect. The outcomes of this research study summarized that two independent variables which are loan loss provision and bank size have a significant relationship with interest rate spread. The other three independent variables namely return on asset, return on equity and operating cost show insignificant relationship towards interest rate spread. As a result, the research objective of this study had been achieved.
format	Thesis
qualification_level	Bachelor degree
author	Mohd Zakaria, Najwa
author_facet	Mohd Zakaria, Najwa
author_sort	Mohd Zakaria, Najwa
title	The factors that influence interest rate spread of micro finance institution in Malaysia / Najwa Mohd Zakaria
title_short	The factors that influence interest rate spread of micro finance institution in Malaysia / Najwa Mohd Zakaria
title_full	The factors that influence interest rate spread of micro finance institution in Malaysia / Najwa Mohd Zakaria
title_fullStr	The factors that influence interest rate spread of micro finance institution in Malaysia / Najwa Mohd Zakaria
title_full_unstemmed	The factors that influence interest rate spread of micro finance institution in Malaysia / Najwa Mohd Zakaria
title_sort	factors that influence interest rate spread of micro finance institution in malaysia / najwa mohd zakaria
granting_institution	Universiti Teknologi MARA, Terengganu
granting_department	Faculty Of Business Management
publishDate	2020
url	https://ir.uitm.edu.my/id/eprint/93716/1/93716.pdf
_version_	1804889893200986112

The factors that influence interest rate spread of micro finance institution in Malaysia / Najwa Mohd Zakaria

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