Examination of Operational Risk in Commercial Bank : A Case in Malaysia

This study investigates the determining factors of operational risk among commercial banks in Malaysia. Operational risks are represented by nine independent variables, namely: expenses, income, liquid asset, leverage, regulatory capital, base-lending rate, non-performing loan, gross domestic produc...

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Main Author:	Tuan Mohd. Asri, Nik Mahmood
Format:	Thesis
Language:	eng eng
Published:	2004
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/1459/1/TUAN_MOHD._ASRI_B._NIK_MAHMOOD.pdf https://etd.uum.edu.my/1459/2/1.TUAN_MOHD._ASRI_B._NIK_MAHMOOD.pdf
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id	my-uum-etd.1459
record_format	uketd_dc
spelling	my-uum-etd.14592013-07-24T12:12:01Z Examination of Operational Risk in Commercial Bank : A Case in Malaysia 2004 Tuan Mohd. Asri, Nik Mahmood Sekolah Siswazah Graduate School HG Finance This study investigates the determining factors of operational risk among commercial banks in Malaysia. Operational risks are represented by nine independent variables, namely: expenses, income, liquid asset, leverage, regulatory capital, base-lending rate, non-performing loan, gross domestic product, and size. The dependent variable is operational risk. The objectives of this study are: to provide a document about the concept of operational risk in commercial banking operations, to investigate determinants of operational risk in commercial banking in Malaysia, and to assess the impact of individual determinant on operational risk of commercial banking. A research framework and a hypothesis are developed. The hypothesis of this study is tested using linear regression analysis. This analysis is used to investigate the determinants of operational risks in commercial banks in Malaysia. From nine independent variables in this study, three independent variables are statistically significant at 0.05 level; they are size, regulatory capital, and base-lending rate. The other six independent variables are not statistically significant to the dependent variable. They are expenses, income, liquid asset, leverage, non-performing loan, and gross domestic product. In conclusion, this study offered insights to understanding the determining factors of operational risk of commercial banks for the first time in Malaysia. The main determinants of commercial banks operational risk in Malaysia have been examined empirically. Hopefully this contribution will spur interest for future in-depth study considering that operational risk is one of the most important risks in banking operation. 2004 Thesis https://etd.uum.edu.my/1459/ https://etd.uum.edu.my/1459/1/TUAN_MOHD._ASRI_B._NIK_MAHMOOD.pdf application/pdf eng validuser https://etd.uum.edu.my/1459/2/1.TUAN_MOHD._ASRI_B._NIK_MAHMOOD.pdf application/pdf eng public masters masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
topic	HG Finance
spellingShingle	HG Finance Tuan Mohd. Asri, Nik Mahmood Examination of Operational Risk in Commercial Bank : A Case in Malaysia
description	This study investigates the determining factors of operational risk among commercial banks in Malaysia. Operational risks are represented by nine independent variables, namely: expenses, income, liquid asset, leverage, regulatory capital, base-lending rate, non-performing loan, gross domestic product, and size. The dependent variable is operational risk. The objectives of this study are: to provide a document about the concept of operational risk in commercial banking operations, to investigate determinants of operational risk in commercial banking in Malaysia, and to assess the impact of individual determinant on operational risk of commercial banking. A research framework and a hypothesis are developed. The hypothesis of this study is tested using linear regression analysis. This analysis is used to investigate the determinants of operational risks in commercial banks in Malaysia. From nine independent variables in this study, three independent variables are statistically significant at 0.05 level; they are size, regulatory capital, and base-lending rate. The other six independent variables are not statistically significant to the dependent variable. They are expenses, income, liquid asset, leverage, non-performing loan, and gross domestic product. In conclusion, this study offered insights to understanding the determining factors of operational risk of commercial banks for the first time in Malaysia. The main determinants of commercial banks operational risk in Malaysia have been examined empirically. Hopefully this contribution will spur interest for future in-depth study considering that operational risk is one of the most important risks in banking operation.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Tuan Mohd. Asri, Nik Mahmood
author_facet	Tuan Mohd. Asri, Nik Mahmood
author_sort	Tuan Mohd. Asri, Nik Mahmood
title	Examination of Operational Risk in Commercial Bank : A Case in Malaysia
title_short	Examination of Operational Risk in Commercial Bank : A Case in Malaysia
title_full	Examination of Operational Risk in Commercial Bank : A Case in Malaysia
title_fullStr	Examination of Operational Risk in Commercial Bank : A Case in Malaysia
title_full_unstemmed	Examination of Operational Risk in Commercial Bank : A Case in Malaysia
title_sort	examination of operational risk in commercial bank : a case in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Sekolah Siswazah
publishDate	2004
url	https://etd.uum.edu.my/1459/1/TUAN_MOHD._ASRI_B._NIK_MAHMOOD.pdf https://etd.uum.edu.my/1459/2/1.TUAN_MOHD._ASRI_B._NIK_MAHMOOD.pdf
_version_	1747827150404190208

Examination of Operational Risk in Commercial Bank : A Case in Malaysia

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