Examining the relationship between operational risk, credit risk and liquidity risk with performance of Malaysia Banks

This study examines the impact of risk management on bank performance in Malaysia. The data of this study are retrieved from DataStream and annual reports of all conventional banks in the country. The sample of the study comprises of 27 conventional commercial banks in Malaysia and the period of...

Full description

Saved in:

Bibliographic Details
Main Author:	Saeed, Maytham Hussein
Format:	Thesis
Language:	eng eng
Published:	2015
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/4631/1/s814431.pdf https://etd.uum.edu.my/4631/2/s814431_abstract.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uum-etd.4631
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abdul Rahman, Nora Azureen
topic	HG Finance
spellingShingle	HG Finance Saeed, Maytham Hussein Examining the relationship between operational risk, credit risk and liquidity risk with performance of Malaysia Banks
description	This study examines the impact of risk management on bank performance in Malaysia. The data of this study are retrieved from DataStream and annual reports of all conventional banks in the country. The sample of the study comprises of 27 conventional commercial banks in Malaysia and the period of study is confined to 2005-2013; making up to 208 observations. The dependent variable of this study is bank performance and is proxy by ROA and ROE, while risk management is the independent variable and is proxy by operational risk, credit risk, and liquidity risk. A regression analysis with GLS estimation is run to test the hypotheses of the study and the results show that operational risk, credit risk and liquidity risk have significant influence on ROE. However, the regression results show that only operational risk and credit risk are significant to ROA while liquidity risk is found to have insignificant relationship with ROA. Hence, the hypotheses of the significant relationship of operational risk and credit risk with bank performance are supported while the hypothesis of significant relationship of liquidity risk and bank performance is not supported.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Saeed, Maytham Hussein
author_facet	Saeed, Maytham Hussein
author_sort	Saeed, Maytham Hussein
title	Examining the relationship between operational risk, credit risk and liquidity risk with performance of Malaysia Banks
title_short	Examining the relationship between operational risk, credit risk and liquidity risk with performance of Malaysia Banks
title_full	Examining the relationship between operational risk, credit risk and liquidity risk with performance of Malaysia Banks
title_fullStr	Examining the relationship between operational risk, credit risk and liquidity risk with performance of Malaysia Banks
title_full_unstemmed	Examining the relationship between operational risk, credit risk and liquidity risk with performance of Malaysia Banks
title_sort	examining the relationship between operational risk, credit risk and liquidity risk with performance of malaysia banks
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2015
url	https://etd.uum.edu.my/4631/1/s814431.pdf https://etd.uum.edu.my/4631/2/s814431_abstract.pdf
_version_	1747827769694224384
spelling	my-uum-etd.46312021-04-05T01:09:04Z Examining the relationship between operational risk, credit risk and liquidity risk with performance of Malaysia Banks 2015 Saeed, Maytham Hussein Abdul Rahman, Nora Azureen Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance This study examines the impact of risk management on bank performance in Malaysia. The data of this study are retrieved from DataStream and annual reports of all conventional banks in the country. The sample of the study comprises of 27 conventional commercial banks in Malaysia and the period of study is confined to 2005-2013; making up to 208 observations. The dependent variable of this study is bank performance and is proxy by ROA and ROE, while risk management is the independent variable and is proxy by operational risk, credit risk, and liquidity risk. A regression analysis with GLS estimation is run to test the hypotheses of the study and the results show that operational risk, credit risk and liquidity risk have significant influence on ROE. However, the regression results show that only operational risk and credit risk are significant to ROA while liquidity risk is found to have insignificant relationship with ROA. Hence, the hypotheses of the significant relationship of operational risk and credit risk with bank performance are supported while the hypothesis of significant relationship of liquidity risk and bank performance is not supported. 2015 Thesis https://etd.uum.edu.my/4631/ https://etd.uum.edu.my/4631/1/s814431.pdf text eng public https://etd.uum.edu.my/4631/2/s814431_abstract.pdf text eng public masters masters Universiti Utara Malaysia Abbasoglu, O. F., Aysan, A. F., & Gunes, A. (2007). Concentration, competition, efficiency and profitability of the Turkish banking sector in the post-crisis period. Banks and Bank Systems 2(3), 106–115. Abiola, I., & Olausi, A. S. (2014). The impact of credit risk management on the commercial banks performance in Nigeria. Abu Hussain, H., & Al-Ajmi, J. (2012). Risk management practices of conventional and Islamic banks in Bahrain. The Journal of Risk Finance Vol. 13 No. 3 , 215-239. Acerbi, C., & Scandolo §, G. (2008). Liquidity risk theory and coherent measures of risk. Quantitative Finance, 8(7), 681-692. Adeusi, S. O., Akeke, N. I., Adebisi, O. S., & Oladunjoye, O. (2014). Risk Management and Financial Performance of Banks in Nigeria. European Journal of Business and Management, 6(31), 336-342. Aebi, V., Sabato, G., & Schmid, M. (2012). Risk management, corporate governance, and bank performance in the financial crisis. Journal of Banking & Finance, 36(12), 3213-3226. Alam, T. (2013).An Evaluation of Financial Performance of Private Commercial Banks in Bangladesh: Ratio Analysis. Ali, K., Akhtar, M. F., & Sadaqat, S. (2011). Financial and Non-Financial Business Risk Perspectives–Empirical Evidence from Commercial Banks.Middle Eastern Finance and Economics, 12, 150-159. Ali, K., Akhtar, M. F., & Ahmed, P. H. (2011). "Bank-Specific and Macroeconomic Indicators of Profitability - Empirical Evidence from the Commercial Banks of Pakistan". International Journal of Business and Social Science, 2 (6), 235-242. Akhtar, M. F., Ali, K., & Sadaqat, S. (2011). Liquidity risk management: a comparative study between conventional and Islamic banks of Pakistan. Interdisciplinary Journal of Research in Business, 1(1), 35-44. Alkhatib, A., & Harasheh, M. (2012). Financial performance of Palestinian commercial banks. International Journal of Business and Social Science, 3(3). Allen, L., DeLong, G., & Saunders, A. (2004). Issues in the credit risk modeling of retail markets. Journal of Banking & Finance, 28(4), 727-752. Ally, Z. (2013). Comparative Analysis of Financial Performance of Commercial Banks in Tanzania. Research Journal of Finance and Accounting, 4(19), 133-143. Almazan, A. (2002). A model of competition in banking: Bank capital vs expertise. Journal of Financial Intermediation, 11(1), 87-121. Altman, E. I. & Hotchkiss, E. (2006). Corporate financial distress and bankruptcy: Predict and avoid bankruptcy, analyze and invest in distressed debt (Vol. 289). John Wiley & Sons. Altman, E. I., & Sabato, G. (2007). Modelling credit risk for SMEs: Evidence from the US market. Abacus, 43(3), 332-357. Almumani, M. A. (2013). Liquidity Risk Management: A Comparative Study between Saudi and Jordanian Banks. Alrabei, A. M. (2013). Evaluate the Profitability in Commercial Bank-Comparative Study of Indian and Jordanian Banks. Asian Journal of Finance & Accounting, 5(1), 259-273. Al-Tamimi, H. A. (2005). The Determinants of the UAE Commercial Banks’ Performance: A Comparison of the National and Foreign Banks. Journal of Transnational Management, 10(4), 35—47. Al-Tamimi, H. A. H., & Al-Mazrooei, F. M. (2007). Banks' risk management: a comparison study of UAE national and foreign banks. Journal of Risk Finance, The, 8(4), 394-409. Altunbas, Y., M.H. Liu, P. Molyneux & R. Seth, (2000). Efficiency and risk in Japanese banking. Journal of Banking and Finance, 24(10): 1605-1628. Altunbas, Y., Carbo, S., Gardener, E. P., & Molyneux, P. (2007). Examining the relationships between capital, risk and efficiency in European banking. European Financial Management, 13(1), 49-70. Anderson, K. and Terp, A. (2006), Risk Management, Andersen T.J. (ed.), Perspectives on Strategic Risk Management: 27-46. Denmark: Copenhagen Business School Press. Arif, A., & Anees, A. N. (2012). Liquidity risk and performance of banking system. Journal of Financial Regulation and Compliance, 20(2), 182-195. Ariffin, N. M., & Kassim, S. H. (2011). Risk Management Practices and Financial Performance of Islamic Banks: Malaysian Evidence. Center for Islamic Economics and Finance, Qatar Faculty of Islamic Studies, Qatar Foundation. Ascarelli, S., (2002). Woes at allied Irish banks, Elan don’t taint Irish stock exchange. Wall Street Journal (February 8). Ashraf, D., Altunbas, Y., & Goddard, J. (2007). Who transfers credit risk? Determinants of the use of credit derivatives by large US banks. The European Journal of Finance, 13(5), 483-500. Athanasoglou, P.P, S.N. Brissimis and M.D. Delis. (2005). “Bank Specific, Industry Specific and Macroeconomic Determinants of Bank Profitability,” Bank of Greece Working Paper, No. 25 (Athens: Bank of Greece). Athanasoglou, P.P., Delis, M.D. & Staikouras, C.K. (2006). The Determinants of Bank profitability in the South Eastern European Region, Bank of Greece Working Paper. Athanasoglou, P. P., Brissimis, S. N., & Delis, M. D. (2008). "Bank-specific, industryspecific and macroeconomic determinants of bank profitability". Journal of International Financial Markets Institutions and Money, 121–136. Bacha, O.I. (2001), Financial Derivatives: Markets and Applications in Malaysia, Penerbit Universiti Putra Malaysia, Kuala Lumpur. Banking Industry Surveys. (June 25, 2009) Standard and Poor’s. Bank Negara Malaysia (1999), The Central Bank and the Financial System in Malaysia: A Decade of Change (1989-1999), Bank Negara Malaysia, Kuala Lumpur. Banker, R.D., Chang, H., Lee, S.-Y., 2010. Differential impact of Korean banking system reforms on bank productivity. Journal of Banking and Finance 34, 1450–1460. Barnhill, T. M., Papapanagiotou, J. P., & Schumacher, L. (2002). "Measuring Integrated Market and Credit Risk in Bank Portfolios: An Application to a Set of Hypothetical. Basel Committee on Banking Supervision (BCBS) (2001), Consultative Document: Principles for the Management and Supervision of Interest Rate Risk, Bank for International Settlements, Basel. Basel Committee (2003). Sound Practices for the Management and Supervision of Operational Risk. Bank for International Settlements: Basel Committee Publications No. 96. Basel Committee [on Banking Supervision, The], 2010, Basel III: International Framework for Liquidity Risk Measurement, Standards and Monitoring. Bauer, W., & Ryser, M. (2004). "Risk management strategies for banks". Journal of Banking & Finance, 28, 331–352. Berger, A.N., & C.H.S. Bouwman, (2005), “Bank Capital and Liquidity Production,” mimeo. Berger, A. N., & DeYoung, R. (2001). Problem Loans and Cost Efficiency in Commercial Banks. INTERNATIONAL LIBRARY OF CRITICAL WRITINGS IN ECONOMICS, 133, 79-100. Berger, A.N., Hasan, I., Zhou, M., 2009. Bank ownership and efficiency in China: what will happen in the world’s largest nation? Journal of Banking and Finance 33, 113–130. Behr, P., & Güttler, A. (2007). Credit Risk Assessment and Relationship Lending: An Empirical Analysis of German Small and Medium‐Sized Enterprises*. Journal of Small Business Management, 45(2), 194-213. Ben Naceur, S., & Goaied, M. (2008). The determinants of commercial bank interest margin and profitability: Evidence from Tunisia. Frontiers in Finance and Economics 5(1), 106–130. Blacker, K. (2000)."Mitigating Operational Risk in British Retail Banks". Risk Management, 2(3), 23-33. Bobakovia, I.V., (2003). Raising the profitability of commercial banks, BIATEC, Retrieved on April, 2005, 11. Available from http/www/nbs.SK/BIATEC/. Boudriga, A., Taktak, N. B., & Jellouli, S. (2009). "Banking supervision and nonperforming loans: a cross-country analysis". 1 (4), 286-318. Brewer, E., Jackson, W. E., & Moser, J. T. (2001). The value of using interest rate derivatives to manage risk at US banking organizations. Economic Perspectives- Federal Reserve Bank of Chicago, 25(3), 49-65. Brown, C., & Davis, K. (2008). The sub-prime crisis down under. Journal of Applied Finance, 18(1), 16-28. Cebenoyan, A. S., & Strahan, P. E. (2004). Risk management, capital structure and lending at banks. Journal of Banking & Finance, 28(1), 19-43. Central Bank of Barbados (2008), Liquidity Risk Management Guideline, Bank Supervision Department, Central Bank of Barbados, Bridgetown. Chapelle, A., Crama, Y., Hübner, G., & Peters, J. P. (2008). Practical methods for measuring and managing operational risk in the financial sector: A clinical study. Journal of Banking & Finance, 32(6), 1049-1061. Chaplin, G., A. Emblow, I. Michael, (2000), “Banking System Liquidity: Developments and Issues,” Bank of England Financial Stability Review, Dec: 93-112. Chari, V.V., & Jagannathan, R., (1988). Banking panics, information, and rational expectations equilibrium. J. Finance 43, 749–761. Chiu, Y.-H., Chen, Y.-C., (2009). The analysis of Taiwanese bank efficiency: incorporating both external environment risk and internal risk. Economic Modelling 26, 456–463. Choon, Y. V., Thim, C. K., & Kyzy, B. T. (2012). Performance of Islamic Commercial Banks in Malaysia: An Empirical study. Journal of Islamic Economics, Banking and Finance, 8(2), 67-79. Committee of Sponsoring Organizations of the Treadway Commission (2004). Enterprise Risk Management: Integrated Framework. Cooper, M.J., Jackson III, W.E. & Patterson, G.A. (2003). Evidence of predictability in the cross-section of bank stock returns. Journal of Banking and Finance 27, 817-850. Cooper, T., Speh, C., & Downey, A. (2011). Creating a Culture of Risk Management. Wolters Kluwer Financial Services. Cornalba, C., & Giudici, P. (2004). "Statistical models for operational risk management". Physica, A (338), 166–172. Cummins, J. D., Lewis, C. M., & Wei, R. (2006). The market value impact of operational loss events for US banks and insurers. Journal of Banking & Finance, 30(10), 2605-2634. Daniels, K., & Ramirez, G. G. (2008). Information, credit risk, lender specialization and loan pricing: Evidence from the DIP financing market.Journal of Financial Services Research, 34(1), 35-59. Demirovic, A., &Thomasn, D. C. (2007)."The Relevance of Accounting Data in the Measurement of Credit Risk". The European Journal of Finance, 13 (3), 253–268. Diamond, D.W., & Dybvig, P.H., (1983). Bank runs, deposit insurance, and liquidity. J. Polit. Economy 91 (3), 401–419. Diamond, D. W., & Rajan, R. G. (1999). Liquidity risk, liquidity creation and financial fragility: A theory of banking (No. w7430). National bureau of economic research. Diamond, D.W., & Rajan, R.G., (2001). “Liquidity Risk, Liquidity Creation and Financial Fragility: A Theory of Banking.” Journal of Political Economy, 109(2): 287-327. Diamond, D. W., & Rajan, R. G. (2005). Liquidity shortages and banking crises.The Journal of finance, 60(2), 615-647. Dima, A. M., & Orzea, I.(2012). Risk Management in Banking. Dinger, V. (2009). Do foreign-owned banks affect banking system liquidity risk?. Journal of Comparative Economics, 37(4), 647-657. Distinguin, I., Roulet, C., & Tarazi, A. (2012). Bank Capital Buffer and Liquidity: Evidence from US and European publicly traded banks. Dowd, K. (2005). Measuring Market Risk. Chichester, UK: John Wiley & Sons Ltd. Drehmann, M., & Nikolaou, K. (2013). Funding liquidity risk: definition and measurement. Journal of Banking & Finance, 37(7), 2173-2182. Drehmann, M., Sorensen, S., & Stringa, M. (2008). The integrated impact of credit and interest rate risk on banks: An economic value and capital adequacy perspective. Duca, J. and McLaughlin, M. M. 1990. Developments affecting the profitability of Commercial banks. Federal Reserve Bulletin 76(7), 477-499. Economist Intelligence Unit (2010). Too good to fail? New challenges for risk management in financial services. The Economist Intelligence Unit Limited. Edwards, H. (2004). Barings – A Case Study Risk Management and Internal Controls. The Risk & Regulatory Forum (TRRF). Elliott, D., Letza, S., McGuinness, M., & Smallman, C. (2000). "Governance, Control and Operational Risk: The Turnbull Effect". Risk Management, 2(3), 47-59. Falconer, B. (2001), “Structural liquidity: the worry beneath the surface”, Balance Sheet, Vol. 9 No. 3, pp. 13-19. Farhi, E., Tirole, J., 2012. Collective moral hazard, maturity mismatch, and systemic bailouts. Amer. Econ. Rev. 102 (1), 60–93. Fatemi, A., & Fooladi, I. (2006). "Credit risk management: a survey of practices". Managerial Finance, 32 (3), 227-233. Fernando, J. R., & Nimal, P. D. (2014). Does Risk Management Effect On Bank Efficiency? An Analysis of Sri Lankan Banking Sector. International Journal of Management and Sustainability, 3(2), 97-110. Fiordelisi, F., Marques-Ibanez, D., & Molyneux, P. (2011). Efficiency and risk in European banking. Journal of Banking & Finance, 35(5), 1315-1326. Flannery, M., 1996. Financial crises, payment system problems, and discount window lending. J. Money, Credit Banking 28(4), 804–824. Flores, F., Ponte, E. B., & Rodrıguez, T. E. (2006). "Operational risk information system: achallenge for the banking sector". Journal of Financial Regulation and Compliance, 14 (4),383-401. Frame, W. Scott & White, Lawrence J. (2002). “Empirical Studies of Financial Innovation: Lots of Talk Little Action?”. Working Paper 2002-12. Federal Reserve Bank of Atlanta, Atlanta GA, USA. Freixas, X., Parigi, B.M., Rochet, J.-C., 2004. The lender of the last resort: a twenty-first century approach. J. Europ. Econ. Assoc. 2 (6), 1085–1115. Froot, K. A. (2007). Risk management, capital budgeting, and capital structure policy for insurers and reinsurers. Journal of Risk and Insurance, 74(2), 273-299. Fu, X., Heffernan, S., 2007. Cost X-efficiency in China’s banking sector. China Economic Review 18, 35–53. Gallati, R.R. (2003). Risk Management and Capital Adequacy. New York, US: McGraw-Hill. Gatev, E. & Strahan, P.E., (2006). Banks’ advantage in hedging liquidity risk: theory and evidence from the commercial paper market. J. Finance 61 (2), 867–892. Gatev, E., Schuermann, T., & Strahan, P. E. (2009). Managing bank liquidity risk: How deposit-loan synergies vary with market conditions. Review of Financial studies, 22(3), 995-1020. Gillet, R., Hubner, G., & Plunus, S. (2010). "Operational risk and reputation in the financial industry". Journal of Banking & Finance, 34, 224–235. Goddard, J., Molyneux, P., & Wilson, J. O. (2004). The profitability of european banks: a cross‐sectional and dynamic panel analysis. The Manchester School, 72(3), 363-381. Goddard, J., Molyneux, P., & Wilson, J. O. (2009). The financial crisis in Europe: evolution, policy responses and lessons for the future. Journal of Financial Regulation and Compliance, 17(4), 362-380. Goldsmith-Pinkham, P., Yorulmazer, T., (2010). Liquidity, bank runs and bailouts: spillover effects during the Northern Rock episode. J. Fin. Services Res. 37 (2–3), 83–98. Greuning, H.V. and Bratanovic, S.B. (2009, 3rd Edition). Analyzing and Managing Banking Risk: “A Framework for Assessing Corporate Governance and Financial Risk”. Washington, D.C, The World Bank. Grody, A. D., Hughes, P. J., & Toms, S. (2011). Risk Accounting: A Next Generation Risk Management System for Financial Institutions. Society of Actuaries. Gujarati, D. N. (2003). Basic Econometrics. 4th ed. McGraw-Hill. Singapore. Gup, B.E. & Kolari, J.W. (2005), Commercial Banking: The Management of Risk, 3rd ed.,Wiley, San Francisco, CA. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006) Multivariate Data Analysis. 6th Ed. Prentice Hall, USA. Hamzah, R. B. (2014). The Determinant Factors for a Successful Risk Culture in Banking Sector: Malaysian Case. Haque, A. (2014). Comparison of Financial Performance of Commercial Banks: A Case Study in the Context of India (2009-2013). Journal of Finance, 2(2), 01-14. Hassan, M. K., & Bashir, A. H. M. (2003, December). Determinants of Islamic banking profitability. In 10th ERF Annual Conference, Morocco (pp. 16-18). Hauswald, R. and R. Marquez (2003),“Information Technology and Financial Services Competition,” Review of Financial Studies 16: 921-948. Hauswald, R., & Marquez, R. (2006). Competition and strategic information acquisition in credit markets. Review of Financial Studies, 19(3), 967-1000. Haw, I.-M., Ho, S.S.M., Hu, B., Wu, D., 2010. Concentrated control, institutions, and banking sector: an international study. Journal of Banking and Finance 34, 485–497. Hawkins, J., & Mihaljek, D. (2001). The banking industry in the emerging market economies: competition, consolidation and systemic stability: an overview. BIS papers, 4, 1-44. Holmström, B., & Tirole, J. (2000). Liquidity and risk management. Journal of Money, Credit and Banking, 295-319. Holmstrom, B. & Tirole, J. (2011). Inside and Outside Liquidity. MIT Press. How, J. C., Karim, M. A., & Verhoeven, P. (2005). "Islamic Financing and Bank Risks: The Case of Malaysia". Thunderbird International Business Review, 47 (1), 75–94. Hsiao, H.-C., Chang, H., Cianci, A.M., Huang, L.-H., (2010). First financial restructuring and operating efficiency: evidence from Taiwanese commercial banks. Journal of Banking and Finance 34, 1461–1471. Huang, R., Ratnovski, L. (2011). The dark side of bank wholesale funding. J. Finan. Intermediation 20 (2), 248–263. Hughes, J. P., Lang, W., Mester, L. J., & Moon, C. G. (2000). Recovering risky technologies using the almost ideal demand system: An application to US banking. Journal of Financial Services Research, 18(1), 5-27. IFRI–CRO Forum (2007), Survey on economic capital practice and applications, The Institute of the Chief Risk Officers (CRO) and International Financial Risk Institute. IMF (2008), Global Financial Stability Report, (April). Instefjord, N. (2005). Risk and hedging: Do credit derivatives increase bank risk?. Journal of Banking & Finance, 29(2), 333-345. Isshaq, Z., & Bokpin, G. A. (2009). "Corporate liquidity management of listed firms in Ghana". 1 (12), 189-198. Jacobson, T. J., Linde, J., &Roszbach, K. (2006). "Internal ratings systems, implied credit risk and the consistency of banks’ risk classification policies". Journal of Banking & Finance, 30, 1899–1926. Jarrow, R. A. (2008). Operational risk. Journal of Banking & Finance, 32(5), 870-879. Jarrow, R A & Turnbull, S M (2000). ‘The intersection of market and credit risk’, Journal of Banking & Finance, Vol. 24, pages 271-99. Jenkinson, N. (2008). Strengthening regimes for controlling liquidity risk: some lessons from the recent turmoil. Bank of England Quarterly Bulletin, Quarterly,2. Jensen, M. C. (2004). The agency costs of overvalued equity and the current state of corporate finance. European Financial Management, 10(4), 549-565. Jeonk, HK (201). “Esays on banking: screning technology“. Department of Economics. Kranert Graduate Schol of Management. Purdue University. Jha, S., & Hui, X. (2012). A comparison of financial performance of commercial banks: A case study of Nepal. African Journal of Business Management, 6(25), 7601-7611. Khwaja, A.I & Mian, A. (2005), “Tracing the Impact of Bank Liquidity Shocks,” mimeo. Kosmidou, K., Tanna, S., & Pasiouras, F. (2005). Determinants of profitability of domestic UK commercial banks: panel evidence from the period 1995-2002. In Money Macro and Finance (MMF) Research Group Conference (Vol. 45). Kosmidou, K. (2008). The determinants of banks' profits in Greece during the period of EU financial integration. Managerial Finance 34(3), 146–159. Kumbirai, M., & Webb, R. (2010). A financial ratio analysis of commercial bank performance in South Africa. African Review of Economics and Finance, 2(1), 30-53. Kuritzkes, A., Schuermann, T., & Weiner, S. M. (2003). Risk measurement, risk management, and capital adequacy in financial conglomerates. Brookings- Wharton Papers on Financial Services, 2003(1), 141-193. Laviada, A. F. (2007). "Internal audit function role in operational risk management". Journal of Financial Regulation and Compliance, 15 (2), 143-155. Lee, W. S., & Kwok, C. C. (2000). Domestic and international practice of deposit insurance: a survey. Journal of Multinational Financial Management, 10(1), 29-62. Lopez, J. A., & Saidenberg, M. R. (2000). Evaluating credit risk models. Journal of Banking & Finance, 24(1), 151-165. Lozano-Vivas, A., Pasiouras, F., 2010. The impact of non-traditional activities on the estimation of bank efficiency: international evidence. Journal of Banking and Finance 34, 1436–1449. Loutskina, E. (2005). “Does Securitization affect Bank Lending? Evidence from Bank Responses to Funding Shocks,” mimeo. Loutskina, E. & Strahan, P.E. (2006). “Securitization and the Declining Impact of Bank Financial Condition on Loan Supply: Evidence from Mortgage Acceptance Rates,” mimeo. Malhotra, D. K., Poteau, R., & Singh, R. (2011). Evaluating the Performance of Commercial Banks in India. Asia Pacific Journal of Finance and Banking Research Vol, 5(5). Matthews, K. and J. Thompson, (2008). The Economics of Banking. Chichester: Wiley, 2008; Chapter 3, pp.99-143. Meor Ayub, M.A. (2006), “Risk management in the banking environment: a rating agency perspective”, paper presented at the Seminar on Risk Management in Islamic Financial Services, Marriot Hotel, Kerala, Lumpur, April 25-26. Miller, S. and Noulas, A. 1997. Portfolio mix and large-bank profitability in the USA. Applied Economics 29, 505-512. Moles, P., (2004). Financial Risk Management Course Text, Edinburgh Business School, Heriot-Watt University, Edinburgh. Molyneux, P. and Thornton, J. 1992. Determinants of European bank profitability: A note. Journal of Banking and Finance 16, 1173-1178. Musyoki, D., & Kadubo, A. S. (2012). The impact of credit risk management on the financial performance of Banks in Kenya for the period. Newton, I. (2008). Application of Portfolio Approaches. JOHN B. CAOUETTE EDWARD I. ALTMAN PAUL NARAYANAN ROBERT NIMMO, 367. Ng, T.-H., Chong, L.-L., & Ismail, H. (2013). Is the risk management committee only a procedural compliance? An insight into managing risk taking among insurance companies in Malaysia. The Journal of Risk Finance Vol. 14 No. 1, 71-86. Nicolo, G. D., Honohan, P., & Ize, A. (2005). Dollarization of bank deposits: Causes and consequences. Journal of Banking & Finance, 29(7), 1697-1727. Nijskens, R., & Wagner, W. (2011). Credit risk transfer activities and systemic risk: How banks became less risky individually but posed greater risks to the financial system at the same time. Journal of Banking & Finance, 35(6), 1391-1398. Nikolaou, K. (2009). Liquidity (risk) concepts: definitions and interactions. NST (2005), “Bank Islam suffers RM500 m loss: new management takes big hit to move ahead afresh”, New Straits Times ( Malaysia), October 7. Okuda, H., 2000. The production technology of Philippine domestic banks in the pre-Asian crisis period: Estimation of the cost function in the 1990–1996 period. Working Paper, Hitotsubashi University. Ongore, V. O., & Kusa, G. B. (2013). Determinants of Financial Performance of Commercial Banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237-252. Owojori, A.A., I.R. Akintoye & F.A. Adidu, (2011). The challenge of risk management in Nigerian banks in the post consolidation era. Journal of Accounting and Taxation, 3(2): 23-31. Pallant, J. (2007). A Step-by-Step Guide to Data Analysis Using SPSS for Windows (Version 15), 3rd Edition. Allen and Unwin, Sydney. Pana, E., Park, J., & Query, T. (2010). The impact of bank mergers on liquidity creation. Journal of Risk Management in Financial Institutions, 4(1), 74-96. Partnerships BC (2005), “An Introduction to Risk Management in a Public Private Partnership.” Partnerships British Columbia, Retrieved 29 March 2009, from www.partnershipsbc.ca. Paravisini, D. (2004). “Constrained Banks, Constrained Borrowers: The Effects of Bank Liquidity on the Availability of Credit,” MIT mimeo, November. Pasiouras, F. (2008). Estimating the technical and scale efficiency of Greek commercial banks: the impact of credit risk, off-balance sheet activities, and international operations. Research in International Business and Finance, 22(3), 301-318. Pastor, J.M., (1999). Efficiency and risk management in Spanish banking: A method to decompose risk. Applied Financial Economics, 9 (4): 371-384. Pastor, J.M., (2002). Credit risk and efficiency in the European banking system: A threestage analysis. Applied Financial Economics, 12 (12): 895-911. Power, M. (2005). "The invention of operational risk". Review of International Political Economy, 12 (4), 577–599. Ratnovski, L. (2013). Liquidity and transparency in bank risk management.Journal of Financial Intermediation, 22(3), 422-439. Ray, D., & Cashman, E. (1999). "Operational risks, bidding strategies and information policies in restructured power markets". Decision Support Systems, 24, 175–182. Risk Books, (2003). Modern Risk Management: A History, London. Rochet, J.-C. & Vives, X., (2004). Coordination Failure and the lender of last resort: was Bagehot right after all? J. Europ. Econ. Assoc. 2 (6), 1116–1147. Rose, P. S. & Hudgins, S. C. (2013). Bank Management and Financial Services. 9th ed. McGraw-Hill International Edition. Boston. Rosly, S. A., & Bakar, M. A. A. (2003). Performance of Islamic and mainstream banks in Malaysia. International Journal of Social Economics,30(12), 1249-1265. SBP (2005), Risk Management: Guidelines for Commercial Banks & DFIs, State Bank of Pakistan, Karachi. Sackett, M. M., & Shaffer, S. (2006). "Substitutes versus complements among credit risk management tools". Applied Financial Economics, 16, 1007–1017. Sadaqat, M. S., Akhtar, M. F., & Ali, K. (2011). "An Analysis on the Performance of IPO– A Study on the Karachi Stock Exchange of Pakistan". International Journal of Business and Social Science, 2 (6), 275-285. Said, R. M., & Tumin, M. H. (2011). Performance and financial ratios of commercial banks in Malaysia and China. International Review of Business Research Papers, 7(2), 157-169. Sanusi, J., (2002). Central bank and the macroeconomic environment in Nigeria. Quarterly Review, 3(3): 25-34. Sensarma, R., & Jayadev, M. (2009). "Are bank stocks sensitive to risk management?” The Journal of Risk Finance, 10 (1), 7-22. Shafiq, A., & Nasr, M. (2010). Risk management practices followed by the commercial banks in Pakistan. International Review of Business Research Papers, 6(2), 308-325. Shah, S. Q., & Jan, R. (2014). Analysis of Financial Performance of Private Banks in Pakistan. Procedia-Social and Behavioral Sciences, 109, 1021-1025. Shin, H.S., 2009. Reflections on Northern Rock: the bank run that heralded the global financial crisis. J. Econ. Perspectives 23 (1), 101–120. Siddiqui, A. (2008). "Financial contracts, risk and performance of Islamic banking". Managerial Finance, 34 (10), 680-694. Silva, D., (2009). The efficiency of the licensed domestic commercial banks in Sri Lanka. Master thesis, University of Sri Jayewardenepura. Shen, C. H., Chen, Y. K., Kao, L. F., & Yeh, C. Y. (2009). Bank liquidity risk and performance. Department of Finance: National University of Kaohsiung. Spathis, C., Koasmidou, K., & Doumpos, M. (2002). Assessing Profitability Factors in the Greek Banking System:A multicriteria methodology. International Transactions in Operational Research, 517-530. Sufian, F. (2009). Determinants of bank efficiency during unstable macroeconomic environment: Empirical evidence from Malaysia. Research in International Business and Finance, 23(1), 54-77. Sufian, F., & Chong, R. R. (2008). Determinants of Bank profitability in a developing economy: Empirical evidence from the Philippines. Asian academy of management journal of accounting and finance, 4(2), 91-112. Suna, L., & Changb, T. P. A. (2010). Comprehensive analysis of the effects of risk measures on bank efficiency: Evidence. Tabachnik, B. G., & Fidell, L. S. (2007). Using Multivariate Statistics. 5th Ed. Pearson International Edition, USA. Tafri, F. H., Rahman, R. A., & Omar, N. (2011). Empirical evidence on the risk management tools practised in Islamic and conventional banks. Qualitative Research in Financial Markets, 3(2), 86-104. Tai, C. S. (2005). Asymmetric Currency Exposure of US Bank Stock Returns. Tandelilin, E., Kaaro, H., & Mahadwartha, P. A. (2007). Corporate governance, risk management and bank performance: Does type of ownership matter. EADN individual research grant project, (34). Tarawneh, M. (2006). A comparison of financial performance in the banking sector: Some evidence from Omani commercial banks. International Research Journal of Finance and Economics, 3, 101-112. Umoh, P.N., (2002). Bank loans, recovery: The roles of the regulatory/supervisory authorities. Judiciary Law Enforcement Agencies and the Press. NDIC Quarterly, 4(3): 8. Van den Brink, G. J. (2002). Operational risk: the new challenge for banks. Macmillan. Vong, P. I., & Chan, H. S. (2009). Determinants of bank profitability in Macao. Macau Monetary Research Bulletin, 12(6), 93-113. Wagner, W, (2010), “Diversification at Financial Institutions and Systemic Crises,” Journal of Financial Intermediation 19, 373-386. Wiseman, R. M., & Catanach, A. H. (1997). "A longitudinal disaggregation of operational risk under changing regulations: evidence from the savings and loan industry". The Academy of Management Journal , 40 (4), 799-830. Wu, F., & Guan, Z. (2008). Farm capital structure choice under credit constraint: theory and application. In 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida (No. 6130). American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). Yasuda, A. (2005). Do Bank-Firm Relationships Affect Bank Competition in the Corporate Bond Underwriting Market?. RODNEY L WHITE CENTER FOR FINANCIAL RESEARCH-WORKING PAPERS-. Yin, H. Y., Wu, S., & Chen, D. Y. (2002). The impact of regulatory changes on banks' risks and returns in Taiwan. Research in Finance, 19, 173-198. Zheng, H., & Shen, Y. (2008). "Jump liquidity risk and its impact on CVaR". The Journal of Risk Finance, 477-491.

Examining the relationship between operational risk, credit risk and liquidity risk with performance of Malaysia Banks

Similar Items