Determinants of bank lending in Malaysia: A Malaysia case

This study aims to analyze the relationship between the economic activities and bank loans in Malaysia. This empirical analysis of this study is to Malaysian banking institutions during the period of year 1996 until the year 2010. The total loans were used as the dependent variable. The three variab...

Full description

Saved in:
Bibliographic Details
Main Author: Siti Nur Amira, Othman
Format: Thesis
Language:eng
eng
Published: 2013
Subjects:
Online Access:https://etd.uum.edu.my/5072/1/s810006.pdf
https://etd.uum.edu.my/5072/2/s810006_abstract.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-uum-etd.5072
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
Siti Nur Amira, Othman
Determinants of bank lending in Malaysia: A Malaysia case
description This study aims to analyze the relationship between the economic activities and bank loans in Malaysia. This empirical analysis of this study is to Malaysian banking institutions during the period of year 1996 until the year 2010. The total loans were used as the dependent variable. The three variables including interest rate, inflation and industrial production index as independent variables. The main objective of this study is to determine whether economic activities have a significant effect of bank lending in Malaysia. The result indicates that only industrial production index have a significant effect to bank lending in Malaysia. This shows that as increase in industrial production index will increase the bank loans in Malaysia
format Thesis
qualification_name masters
qualification_level Master's degree
author Siti Nur Amira, Othman
author_facet Siti Nur Amira, Othman
author_sort Siti Nur Amira, Othman
title Determinants of bank lending in Malaysia: A Malaysia case
title_short Determinants of bank lending in Malaysia: A Malaysia case
title_full Determinants of bank lending in Malaysia: A Malaysia case
title_fullStr Determinants of bank lending in Malaysia: A Malaysia case
title_full_unstemmed Determinants of bank lending in Malaysia: A Malaysia case
title_sort determinants of bank lending in malaysia: a malaysia case
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2013
url https://etd.uum.edu.my/5072/1/s810006.pdf
https://etd.uum.edu.my/5072/2/s810006_abstract.pdf
_version_ 1776103664612540416
spelling my-uum-etd.50722023-05-24T02:49:12Z Determinants of bank lending in Malaysia: A Malaysia case 2013 Siti Nur Amira, Othman Abdul Rahman, Nora Azureen Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance This study aims to analyze the relationship between the economic activities and bank loans in Malaysia. This empirical analysis of this study is to Malaysian banking institutions during the period of year 1996 until the year 2010. The total loans were used as the dependent variable. The three variables including interest rate, inflation and industrial production index as independent variables. The main objective of this study is to determine whether economic activities have a significant effect of bank lending in Malaysia. The result indicates that only industrial production index have a significant effect to bank lending in Malaysia. This shows that as increase in industrial production index will increase the bank loans in Malaysia 2013 Thesis https://etd.uum.edu.my/5072/ https://etd.uum.edu.my/5072/1/s810006.pdf text eng public https://etd.uum.edu.my/5072/2/s810006_abstract.pdf text eng public masters masters Universiti Utara Malaysia Akpansung, A. & Babalola, S. (2000). Banking sector credit and economic growth in Nigeria. Journal of Applied Statistics, Vol. 2 No. 2. Bakar, N., M. & Tahir, I., M. (2009). Applying multiple linear regression ad neural network to predict bank performance. International Business Research. Vol. 2 No. 4. Bacardi, F. (2013). Consumer confidence windless in rocky economy Bank Loan-Investopedia Definition of ‘Bank Loan’ Retrieved January 20, 2013 from http://www.investopedia.com/terms/bankloan. Bank: Connections Between Customers Having Capital Deficits and Surpluses Retrieved 02, 2013 from http://www.studymode.com/essays/Bank Connections-Between Customers-Having Capital. Bank Negara-Bank Negara Annual Report Retrieved 2013 from http://www.bnm.gov.my. Banking and Financial service Recovey Retrieved 2013 from http://www.gradmalaysia.com/careersectors/artic le/banking-and financialservices recovery. Beechy, M. & Osterholm, P. (2006). The rise and fall of U.S. inflation persistence. Bernanke, B. & Blinder, A.S. (1992). “Credit, Money and Aggregate Demand”, American Economic Review, Vol. 78, pp. 435-39. Boyd, A. (2000). A User’s guide to banking crises. Boyd, J.H., Levine, R. & Smith, B. D. (2001). The Impact of Inflation on Financial Sector Performance. Journal of monetary economy. Buyuksalvarci, A. (2010). The effects of macroeconomic variables on stock returns : Evidence from Turkey. European Journal of Social Sciences. Vol. 14 No 3. Calza, A., C. Gartner & J. Sousa. (2001). Modelling the demand for loans to the private sector in the Euro area. Calza, A., M. Manrique & J. Sousa. (2003). Aggregate loans to the Euro area private sector. Castro, G & Santos, C. (2010). Bank’s interest rate and loans determinants Consumer price index-Retrieved January 02 2013 from http://en.wikipedia.org/ wiki/consumer_price_index. Crowling, M. & Paul, W. (1996). Bank lending decision and small firm: Does size matter, International Journal of Entrepreneurial Behavior and Research, 2(2), pp. 52-68. Datta, M. & Mukhopadhya, C. (2011). Relationship between inflation and economic growth in Malaysia-An Econometric Review. International Proceedings of Economics Development & Research. Vol. 4, pp. 415. Delhaise, P. F. (1998). Asia in Crisis : The Implosion of the Banking and Finance Systems. Dickey D. A & Fuller W.A. (1981). Likelihood Ratio Statistics for Auto Repressing Time Series with a Unit Root. Econometrical, 49. 1057-1072. Dornbush, K. (2000). Contagion: Understanding how it spreads. Edward (2000). Money, income, prices and interest rate Engle, R. F. & Granger, C. W. J. (1987). Cointegration and Error Correction: Representation, Estimation, and Testing, Econometrica, 55, 2, pp 251-276. Égert, B., L. & MacDonald, R. (2006). Equilibrium Exchange Rates in Transition Economies: Taking Stock of the Issues. Journal of Economic Survey. 20(2). pp. 257–324. Fullop, G. & Gyomai, G. (2012). Transition of the OECD CLI system to a GDPbased business cycle. Gambacorta. L. (2004). How do banks set interest rates. Granger, C. W. J. (1969). Investigating Causal Relations by Econometric Models and Cross spectral Methods, Econometrica, 37, pp 424-438. Gregorio, J. & Sturzenegger, F. (1997). “Financial Markets and Inflation under Imperfect Information”, Journal of Development Economics, Vol. 54, pp. 149-68. Green, W. H., (2003). Econometric Analysis, 5th Ed. Pearson Education International, New York. Goh, K., L. & Yong, S., L. (2007). Bank lending and monetary policy: the effects of structural shift in interest rates. Gujarati, D. N. & Porter, D.C. (2009). Basic Econometric, 5th Ed. Mc Graw. Hill, Singapore, pp. 653,755-756,75 Gujarati, D. N., (2003). Basic Econometrics. 4th Ed. Mcgraw-Hill. Singapore. Gul, S., Irshad, F., & Zaman, K. (2011). Factors Affecting Bank Profitability in Pakistan. The Romanian Economic Journal. Hall & Robert. (1982). Inflation, cause and effect. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L., (2006). Multivariate Data Analysis. 6th Ed. Prentice Hall, USA. Hancock, F. (2003). The repercussion on small banks and small business of bank capital and loan guarantees. Hopper (1997). What Determines the Exchange Rate: Economic Factors or Market Sentiment. Hofmann, B. (2001). The Determinants of Private Sector Credit in Industrialized Countries: Do Property Prices Matter?. Indiastuti, R. (2012). Determinants of Interest Rate for Industrial Loan in Indonesia Inflation- Wikipedia Definition of ‘Inflation’ Retrieved 14 June 2013 from: https://en.wikipedia.org/wiki/Inflation Industrial Production Index-Wikipedia Definition of ‘Industrial Production Index’ Retrieved 21 June 2013 from: http://en.wikipedia.org/wiki/Economic_indicator Interest Rate definition Retrieved 02, 2013 from http://www.investopedia.com/terms/i/interestrate Ibrahim, M. (2006). Impact of the global crisis on Malaysia's financial system. Jonathan, M. (2000). Microfinance beyond group lending. 8(2). pp. 401-420. Joseph, C. (2013). Five economic factors. Karim, A. Z., Sani, A. W. & Karim. A., B. (2012). Bank lending channel of monetary policy: Dynamic panel data study of Malaysia. Kakes, J. (2000). “Identifying the Mechanism: Is There a Bank Lending Channel of Monetary Transmission in the Netherlands?”, Applied Economics, Vol. 7, pp. 63. Keeton, R.W. (1999). Does faster loan growth lead to higher loan losses, pp. 57-75. Kurt, D., Detregiache, E. & Poonam. (2000). Inside the crisis: An empirical analysis of Banking System in Distress. Kim, S. B. & Moreno, R. (1994). “Stock prices and bank lending behavior in Japan”, Economic Review, Vol. 1, pp. 31-42. Khan-Khanacademy Retrieved 2013 from http://www.khanacademy.org/financeeconomics/ macroeconomics/moneysupply. Kiss, G., M. Nagy & Vonnák. B. (2006). Credit Growth in Central and Eastern Europe: Trend, Cycle or Boom?. Lamborte, M. (2013). Monetary Policy and the Federal Reserve: Current Policy and Conditions. Levine, R. & Zervos, S. (1998). ‘Stock markets and economic growth’ Vol. 88 pp. 37 558. Li, M. (2006). Inflation and Economic Growth: Threshold Effects and Transmission Mechanisms. Malaysian Financial System- Bank Negara Malaysia ‘Overview of Malaysian Financial System’ Retrieved 1st January 2010 from: http://www.bnm.gov.my. Maddala, G. S. & Wu, S. (1999). A comparative study of unit rot tests with panel data and a new simple test. Mathai, K. (2002). Stabilizing prices and output Mousa, N. Y. (2010). Monetary Policy and the role of exchange rate: The case of Jordan. Mcquire. B. P. & Conroy. D. J. (1998). Effects on microfinance of the 1997-1998 Asian Financial Crisis. Mishkin, F.S. (2003). The Economics of Money, Banking and Financial Markets, 6th ed. 679 Addison and Wesly, New York. Mishkin, F. (1995). Financial market, Institution and Money, Harper Collin Collage Publisher. pp 381. Mishkin, F. (1996). The channel of monetary transmission: Lessons for monetary policy. Mishkin, F. S., & Eakins, S. G. (2009). Financial Markets and Institutions (6th ed.). United States of America: Pearson. Morly. (1971). The economics of inflation. Murphy, E. & Garvey, E. (2008). Cost of living for different social groups in Ireland. Moore, W. & Craigwell, R. (2000). The relationship between commercial bank’s interest rates and loan size. Moore, B. J. (1988). Horizontalists and Verticalists: The Macroeconomics of Credit Money, New York: Cambridge University Press. Oh, S., N. ( 2000). Towards a sustainable banking sector-Malaysia. Qayyum & Abdul (2002). Demand for Bank Lending by the Private Business Sector in Pakistan, MPRA Paper no. 2084. Rose, P. S. & Hudgins, S. C. (2008). Bank Management & Financial Services (7th ed.) Richard, C., K. Burdekin & Tao, R. (2011). Bank lending and Inflation in Malaysia: Assessment from unrestricted error- correction models. Economic Research International, 15 (3), pp. 275-289. Rousseau, Peter L. & Wachtel, Paul. (2002). “Inflation Thresholds and the Finance Growth Nexus,” Journal of International Money and Finance, 21, 777 793. Sekaran, U. (2003). Research methods for business a skill-building approach, New York: John Wiley & Sons Inc. South- Western College Publishing. Tang, T. C. (2001). Bank Lending and Inflation in Malaysia: Assessment from Unrestricted Error-Correction Models. Asian Economic Journal. Vol. 15 pp 275-289. Tabachnik, B.G. & Fidell, L.S. (2007). Using Multivariate Statistics. 5th Ed.Pearson International Edition, USA. Tawose, J. O. B. (2012). Effects of Bank Credit on Industrial Performance in Negeria. International Business and Management, Vol. 4, NO. 2. pp. 158-68. Thakor, A.V. & Wilson, P.F. (1995). Capital requirements, loan renegotiation and the borrower's choice of financing source. Journal of Banking & Finance. pp. 693-711. Wouter, J., Steven, W. S. & Guy M. Y. (2006). Bank loan portfolios and the monetary transmission mechanism, Journal of Monetary Economics, 54. pp. 904-924. Wren-Lewis, S. (2000). The Limit of Discretionary Fiscal Stabilization Policy, Oxford Review of Economic Policy, 16:4, 72-91 Wen, S.F. (2009). Interest Reduction–A Solution For Financial Crisis. Zagrib. (2007). Estimating credit demand in Croatia.