Determinants of domestic conventional banks profitability in Malaysia / Noor Syamimi Nadzirah Arzmi

Well known that commercial banks play an intermediary role to aid flow of funds between surplus funds unit and deficit funds unit in an economy besides maintaining the stability of economy in a country. Thus, banks had been widely recognized as the most critical institutions in a financial system. P...

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Main Author:	Arzmi, Noor Syamimi Nadzirah
Format:	Thesis
Language:	English
Published:	2017
Subjects:	Special classes of banks and financial institutions
Online Access:	https://ir.uitm.edu.my/id/eprint/99764/1/99764.pdf
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id	my-uitm-ir.99764
record_format	uketd_dc
spelling	my-uitm-ir.997642024-09-30T12:24:19Z Determinants of domestic conventional banks profitability in Malaysia / Noor Syamimi Nadzirah Arzmi 2017-09 Arzmi, Noor Syamimi Nadzirah Special classes of banks and financial institutions Profits. Corporate profits Well known that commercial banks play an intermediary role to aid flow of funds between surplus funds unit and deficit funds unit in an economy besides maintaining the stability of economy in a country. Thus, banks had been widely recognized as the most critical institutions in a financial system. Presently, the banking sector has experienced global major transformation in its operating context. Recent trend in financial technological and financial innovation and globalization are definitely posing new challenges to the market participants in financial sector. Therefore, understanding of determinants captures the interest from government and other parties such as bankers, shareholders and investors to have clearer picture of past and current circumstances of banking industry. Hence, the aim of this study is to investigate the bank specific (internal) and macroeconomic (external) determinants of banks profitability. The proxy of bank's profitability is return on assets (ROA). The specifics determinants for bank profitability used in this study are size, capital adequacy, and liquidity, while the macroeconomics determinant is gross domestic product (GDP). This study uses samples of domestic conventional banks in Malaysia namely, Affin Holdings Berhad, Ammb Holdings Berhad, Cimb Group Holdings Berhad, Malayan Banking Berhad, Public Bank Berhad, RHB Bank Berhad and Hong Leong Bank Berhad for the period of 2002 to 2015. The data are analysed using pooled ordinary least square (Pooled OLS) regression. The findings are expected to show that bank size, capital adequacy, liquidity and GDP have positive impacts on bank's profitability. It indicates that the larger bank can maximizes banks profitability and good capital adequacy is preserve higher capital strength to bear losses and dismiss the risk of insolvency. 2017-09 Thesis https://ir.uitm.edu.my/id/eprint/99764/ https://ir.uitm.edu.my/id/eprint/99764/1/99764.pdf text en public degree Universiti Teknologi MARA, Johor Faculty of Business and Management Tay, Bee Hoong Mohd Hasan Abdul, Norhasniza
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Tay, Bee Hoong Mohd Hasan Abdul, Norhasniza
topic	Special classes of banks and financial institutions Special classes of banks and financial institutions
spellingShingle	Special classes of banks and financial institutions Special classes of banks and financial institutions Arzmi, Noor Syamimi Nadzirah Determinants of domestic conventional banks profitability in Malaysia / Noor Syamimi Nadzirah Arzmi
description	Well known that commercial banks play an intermediary role to aid flow of funds between surplus funds unit and deficit funds unit in an economy besides maintaining the stability of economy in a country. Thus, banks had been widely recognized as the most critical institutions in a financial system. Presently, the banking sector has experienced global major transformation in its operating context. Recent trend in financial technological and financial innovation and globalization are definitely posing new challenges to the market participants in financial sector. Therefore, understanding of determinants captures the interest from government and other parties such as bankers, shareholders and investors to have clearer picture of past and current circumstances of banking industry. Hence, the aim of this study is to investigate the bank specific (internal) and macroeconomic (external) determinants of banks profitability. The proxy of bank's profitability is return on assets (ROA). The specifics determinants for bank profitability used in this study are size, capital adequacy, and liquidity, while the macroeconomics determinant is gross domestic product (GDP). This study uses samples of domestic conventional banks in Malaysia namely, Affin Holdings Berhad, Ammb Holdings Berhad, Cimb Group Holdings Berhad, Malayan Banking Berhad, Public Bank Berhad, RHB Bank Berhad and Hong Leong Bank Berhad for the period of 2002 to 2015. The data are analysed using pooled ordinary least square (Pooled OLS) regression. The findings are expected to show that bank size, capital adequacy, liquidity and GDP have positive impacts on bank's profitability. It indicates that the larger bank can maximizes banks profitability and good capital adequacy is preserve higher capital strength to bear losses and dismiss the risk of insolvency.
format	Thesis
qualification_level	Bachelor degree
author	Arzmi, Noor Syamimi Nadzirah
author_facet	Arzmi, Noor Syamimi Nadzirah
author_sort	Arzmi, Noor Syamimi Nadzirah
title	Determinants of domestic conventional banks profitability in Malaysia / Noor Syamimi Nadzirah Arzmi
title_short	Determinants of domestic conventional banks profitability in Malaysia / Noor Syamimi Nadzirah Arzmi
title_full	Determinants of domestic conventional banks profitability in Malaysia / Noor Syamimi Nadzirah Arzmi
title_fullStr	Determinants of domestic conventional banks profitability in Malaysia / Noor Syamimi Nadzirah Arzmi
title_full_unstemmed	Determinants of domestic conventional banks profitability in Malaysia / Noor Syamimi Nadzirah Arzmi
title_sort	determinants of domestic conventional banks profitability in malaysia / noor syamimi nadzirah arzmi
granting_institution	Universiti Teknologi MARA, Johor
granting_department	Faculty of Business and Management
publishDate	2017
url	https://ir.uitm.edu.my/id/eprint/99764/1/99764.pdf
_version_	1811769027914104832

Determinants of domestic conventional banks profitability in Malaysia / Noor Syamimi Nadzirah Arzmi

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