Impact of household financing on bank and economic performances in Malaysia

Household financing and loans have been increasing in Malaysian banks over the years. Commercial and Islamic banks have relied on this sector to meet up with their profitability and the trend also gives impact on Malaysian economic performance. This study aims to investigate the impact of household...

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Main Author:	Tunde, Ajani Ibrahim
Format:	Thesis
Language:	eng eng eng
Published:	2020
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/10093/1/s824992_01.pdf https://etd.uum.edu.my/10093/2/s824992_02.pdf https://etd.uum.edu.my/10093/3/s824992_references.docx
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id	my-uum-etd.10093
record_format	uketd_dc
spelling	my-uum-etd.100932024-01-28T03:01:12Z Impact of household financing on bank and economic performances in Malaysia 2020 Tunde, Ajani Ibrahim Isa, Mohamad Yazid Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance Household financing and loans have been increasing in Malaysian banks over the years. Commercial and Islamic banks have relied on this sector to meet up with their profitability and the trend also gives impact on Malaysian economic performance. This study aims to investigate the impact of household financing on bank as well as economic performances. For banks performance, household financing, banks specific variables and macro-economic variables will be regressed on return on asset (ROA) and net profit margin (NPM) of Islamic banks or net interest margin (NIM) of conventional banks. While for economic performance, same variables were deployed on gross domestic product (GDP) and money supply for the period between 2004 and 2018. The results revealed that household financing has a positive impact on Islamic bank ROA and negative impact on NPM, while conventional banks show a positive impact to both ROA and NIM. The results also show that household financing/loan have negative relationship with economic performance. There is an increasing direction stating a higher household loan or financing could deteriorate economic performance. The result gives signal to household indebtedness which it could has adverse effect on the economy at large. 2020 Thesis https://etd.uum.edu.my/10093/ https://etd.uum.edu.my/10093/1/s824992_01.pdf text eng public https://etd.uum.edu.my/10093/2/s824992_02.pdf text eng public https://etd.uum.edu.my/10093/3/s824992_references.docx text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Isa, Mohamad Yazid
topic	HG Finance
spellingShingle	HG Finance Tunde, Ajani Ibrahim Impact of household financing on bank and economic performances in Malaysia
description	Household financing and loans have been increasing in Malaysian banks over the years. Commercial and Islamic banks have relied on this sector to meet up with their profitability and the trend also gives impact on Malaysian economic performance. This study aims to investigate the impact of household financing on bank as well as economic performances. For banks performance, household financing, banks specific variables and macro-economic variables will be regressed on return on asset (ROA) and net profit margin (NPM) of Islamic banks or net interest margin (NIM) of conventional banks. While for economic performance, same variables were deployed on gross domestic product (GDP) and money supply for the period between 2004 and 2018. The results revealed that household financing has a positive impact on Islamic bank ROA and negative impact on NPM, while conventional banks show a positive impact to both ROA and NIM. The results also show that household financing/loan have negative relationship with economic performance. There is an increasing direction stating a higher household loan or financing could deteriorate economic performance. The result gives signal to household indebtedness which it could has adverse effect on the economy at large.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Tunde, Ajani Ibrahim
author_facet	Tunde, Ajani Ibrahim
author_sort	Tunde, Ajani Ibrahim
title	Impact of household financing on bank and economic performances in Malaysia
title_short	Impact of household financing on bank and economic performances in Malaysia
title_full	Impact of household financing on bank and economic performances in Malaysia
title_fullStr	Impact of household financing on bank and economic performances in Malaysia
title_full_unstemmed	Impact of household financing on bank and economic performances in Malaysia
title_sort	impact of household financing on bank and economic performances in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2020
url	https://etd.uum.edu.my/10093/1/s824992_01.pdf https://etd.uum.edu.my/10093/2/s824992_02.pdf https://etd.uum.edu.my/10093/3/s824992_references.docx
_version_	1794023747900932096

Impact of household financing on bank and economic performances in Malaysia

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