Bank noninterest income and risk: An empirical analysis of commercial banks in Malaysia

Bank noninterest income and risk: An empirical analysis of commercial banks in Malaysia

The purpose of this study is to investigate the impact of noninterest income on Malaysian commercial banks risk for over the period 2005 to 2014. Previous studies document that noninterest income activities may influence bank risk as the earnings volatility increases when banks expand into nonintere...

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Main Author: Chan, De Long
Format: Thesis
Language:eng
eng
Published: 2016
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/6114/1/s818922_01.pdf
https://etd.uum.edu.my/6114/2/s818922_02.pdf
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id my-uum-etd.6114
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Abdul Adzis, Azira
topic HG Finance
spellingShingle HG Finance
Chan, De Long
Bank noninterest income and risk: An empirical analysis of commercial banks in Malaysia
description The purpose of this study is to investigate the impact of noninterest income on Malaysian commercial banks risk for over the period 2005 to 2014. Previous studies document that noninterest income activities may influence bank risk as the earnings volatility increases when banks expand into noninterest income generating activities due to higher level of competition. Employing a sample of 27 commercial banks in Malaysia, the finding of this study suggests that banks' risk will increase when net noninterest income increase. This study also includes bank size and return on equity (ROE) as control variables to see their impact on bank risk. The results indicate that larger banks tend to have lower risk, while banks with higher ROE will also have lower risk
format Thesis
qualification_name masters
qualification_level Master's degree
author Chan, De Long
author_facet Chan, De Long
author_sort Chan, De Long
title Bank noninterest income and risk: An empirical analysis of commercial banks in Malaysia
title_short Bank noninterest income and risk: An empirical analysis of commercial banks in Malaysia
title_full Bank noninterest income and risk: An empirical analysis of commercial banks in Malaysia
title_fullStr Bank noninterest income and risk: An empirical analysis of commercial banks in Malaysia
title_full_unstemmed Bank noninterest income and risk: An empirical analysis of commercial banks in Malaysia
title_sort bank noninterest income and risk: an empirical analysis of commercial banks in malaysia
granting_institution Universiti Utara Malaysia
granting_department School of Economics, Finance & Banking
publishDate 2016
url https://etd.uum.edu.my/6114/1/s818922_01.pdf
https://etd.uum.edu.my/6114/2/s818922_02.pdf
_version_ 1747828023284989952
spelling my-uum-etd.61142021-04-05T02:07:35Z Bank noninterest income and risk: An empirical analysis of commercial banks in Malaysia 2016 Chan, De Long Abdul Adzis, Azira School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance The purpose of this study is to investigate the impact of noninterest income on Malaysian commercial banks risk for over the period 2005 to 2014. Previous studies document that noninterest income activities may influence bank risk as the earnings volatility increases when banks expand into noninterest income generating activities due to higher level of competition. Employing a sample of 27 commercial banks in Malaysia, the finding of this study suggests that banks' risk will increase when net noninterest income increase. This study also includes bank size and return on equity (ROE) as control variables to see their impact on bank risk. The results indicate that larger banks tend to have lower risk, while banks with higher ROE will also have lower risk 2016 Thesis https://etd.uum.edu.my/6114/ https://etd.uum.edu.my/6114/1/s818922_01.pdf text eng public https://etd.uum.edu.my/6114/2/s818922_02.pdf text eng public masters masters Universiti Utara Malaysia Akhtar, D. Z. (2006). "Liberalisation and Consolidation of Malaysian Banking & Finance Sector: Enhancing Competitiveness & Resilience of Our Economy". Retrieved from Bank Negara Malaysia: http://www.bm.gov.my/index.php?ch=en~speech&pg= enspeec-ha ll&ac=218&lang=en Allen, F., & Santomero, A. M. (2001). What do financial intermediaries do? Journal of Banking & Finance, 25(2), 271-294. Bank Negara Malaysia, (2013). Financial Stability and Payment System Report. Retrieved from http://www.bm.gov.my/files/publication/2013/ fs2013_book.pdf Brewer, E. (1989). Relationship between bank holding company risk and nonbank activity. 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