Macroeconomic and Bank-Specific Determinants of Malaysian Bank Profitability: Evidence During the Period of 2008 Global Financial Crisis

Macroeconomic and Bank-Specific Determinants of Malaysian Bank Profitability: Evidence During the Period of 2008 Global Financial Crisis

This dissertation analyzes the determinants of commercial bank profitability in Malaysia for the period 2006-2012. This dissertation also examines whether 2008 global financial crisis affects bank profitability in Malaysia. Since the sample comprises foreign and local banks, this dissertation also t...

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Main Author: Nurul Hazwani, Ramli
Format: Thesis
Language:eng
eng
Published: 2014
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/4037/1/s814247.pdf
https://etd.uum.edu.my/4037/2/s814247_abstract.pdf
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id my-uum-etd.4037
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Abd Adzis, Azira
topic HG Finance
spellingShingle HG Finance
Nurul Hazwani, Ramli
Macroeconomic and Bank-Specific Determinants of Malaysian Bank Profitability: Evidence During the Period of 2008 Global Financial Crisis
description This dissertation analyzes the determinants of commercial bank profitability in Malaysia for the period 2006-2012. This dissertation also examines whether 2008 global financial crisis affects bank profitability in Malaysia. Since the sample comprises foreign and local banks, this dissertation also tests whether there is significant difference between foreign and local banks in the aspect of profitability, as generally, foreign banks have larger capital than that of local banks. From the fixed effect estimation analysis, the findings suggest that Malaysian banks with a larger capital and higher credit quality exhibit high profitability level. The findings also demonstrate that bank size has a negative relationship with bank profitability, implying that bigger banks have lower profits than that of small banks. The results also do not support that foreign banks are more profitable than that of local banks in the period studied. In the aspect of macroeconomics determinants, the results suggest that GDP is not the main determinant of Malaysian bank profitability , while on the contrary, inflation rate significantly impact bank profitability in Malaysia. Interestingly, this dissertation does not find conclusive evidence to support that the 2008 global financial crisis affects bank profitability in Malaysia.
format Thesis
qualification_name masters
qualification_level Master's degree
author Nurul Hazwani, Ramli
author_facet Nurul Hazwani, Ramli
author_sort Nurul Hazwani, Ramli
title Macroeconomic and Bank-Specific Determinants of Malaysian Bank Profitability: Evidence During the Period of 2008 Global Financial Crisis
title_short Macroeconomic and Bank-Specific Determinants of Malaysian Bank Profitability: Evidence During the Period of 2008 Global Financial Crisis
title_full Macroeconomic and Bank-Specific Determinants of Malaysian Bank Profitability: Evidence During the Period of 2008 Global Financial Crisis
title_fullStr Macroeconomic and Bank-Specific Determinants of Malaysian Bank Profitability: Evidence During the Period of 2008 Global Financial Crisis
title_full_unstemmed Macroeconomic and Bank-Specific Determinants of Malaysian Bank Profitability: Evidence During the Period of 2008 Global Financial Crisis
title_sort macroeconomic and bank-specific determinants of malaysian bank profitability: evidence during the period of 2008 global financial crisis
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2014
url https://etd.uum.edu.my/4037/1/s814247.pdf
https://etd.uum.edu.my/4037/2/s814247_abstract.pdf
_version_ 1747827668624080896
spelling my-uum-etd.40372016-04-17T07:07:06Z Macroeconomic and Bank-Specific Determinants of Malaysian Bank Profitability: Evidence During the Period of 2008 Global Financial Crisis 2014-06 Nurul Hazwani, Ramli Abd Adzis, Azira Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance This dissertation analyzes the determinants of commercial bank profitability in Malaysia for the period 2006-2012. This dissertation also examines whether 2008 global financial crisis affects bank profitability in Malaysia. Since the sample comprises foreign and local banks, this dissertation also tests whether there is significant difference between foreign and local banks in the aspect of profitability, as generally, foreign banks have larger capital than that of local banks. From the fixed effect estimation analysis, the findings suggest that Malaysian banks with a larger capital and higher credit quality exhibit high profitability level. The findings also demonstrate that bank size has a negative relationship with bank profitability, implying that bigger banks have lower profits than that of small banks. The results also do not support that foreign banks are more profitable than that of local banks in the period studied. In the aspect of macroeconomics determinants, the results suggest that GDP is not the main determinant of Malaysian bank profitability , while on the contrary, inflation rate significantly impact bank profitability in Malaysia. Interestingly, this dissertation does not find conclusive evidence to support that the 2008 global financial crisis affects bank profitability in Malaysia. 2014-06 Thesis https://etd.uum.edu.my/4037/ https://etd.uum.edu.my/4037/1/s814247.pdf text eng validuser https://etd.uum.edu.my/4037/2/s814247_abstract.pdf text eng public masters masters Universiti Utara Malaysia Aziz, A. Z. (2012, December). Finance and the real economy: fostering sustainability. 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