Economies of Scale and Economies of Scope of Commercial Banks in Malaysia
Commercial banks in Malaysia represent the largest financial institutions in term of assets owned, loans rendered and total deposits. To-date, commercial banks account for about 70 percent of the assets, loans and deposit of all financial institutions in the country. They are considered important...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English English |
| Published: |
2001
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/9269/1/GSM_2001_8.pdf |
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| Summary: | Commercial banks in Malaysia represent the largest financial institutions
in term of assets owned, loans rendered and total deposits. To-date, commercial
banks account for about 70 percent of the assets, loans and deposit of all financial
institutions in the country. They are considered important because they have
contributed significantly in intermediating between the depositors in the
financial sector and the borrowers in the real sectors that generate economic
growth, besides offering a wide range of financial services. The role of the
commercial banks in rendering and facilitating the payments system in the
financial and capital markets is particularly important. Thus, without a cost
effective and operationally efficient payments system, domestic and foreign
economic transactions could not be carried out effectively. Commercial banks are
considered efficient and effective if they are able to generate outputs or services at
a minimum cost and continuously reap the benefits of economies of scale and
scope in the long run. |
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