The impact of globalisation towards bank performance in Malaysia

The purpose of this study is to shed some crucial light on the relationship between globalisation and performance of the banking system in Malaysia. This study uses a range of bank-characteristic determinants (internal factors), macroeconomic determinants (external factors) and three different dimen...

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Main Author:	Mugeshmani, Supramaniam
Format:	Thesis
Language:	eng eng
Published:	2018
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/7850/1/Depositpermission_s822979.pdf https://etd.uum.edu.my/7850/2/s822979_01.pdf
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id	my-uum-etd.7850
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Murugiah, Logasvathi
topic	HG Finance
spellingShingle	HG Finance Mugeshmani, Supramaniam The impact of globalisation towards bank performance in Malaysia
description	The purpose of this study is to shed some crucial light on the relationship between globalisation and performance of the banking system in Malaysia. This study uses a range of bank-characteristic determinants (internal factors), macroeconomic determinants (external factors) and three different dimensions of globalisation including economic globalisation, social globalisation and political globalisation to explain local commercial bank performance in Malaysia. This study uses regression analysis based on the secondary data for local commercial banks in Malaysia. The period for this secondary data is 10 years which is from the year 2008 till 2017. This study indicates that there is strong evidence stating both economic and politic globalisation have negatively significant effects on the bank performance in Malaysia. Meanwhile, social globalisation shows an insignificant result on this. As for bank characteristics variables, credit risk shows a negatively significant result towards bank performance in Malaysia while bank size shows a positive and significant result towards bank performance in Malaysia. Sole macroeconomic variable which is GDP does not show any significant result towards the bank performance in Malaysia. Therefore, central bank of Malaysia should give some incentive training for local bankers on how to adopt new supervision and risk management. This will give the local bankers some new knowledge to handle better risk management and directly boost the bank performance. Besides that, banks should develop their credit risk management to overcome any default loans and for better financial performances. Banks in Malaysia also need to expand their businesses as larger banks gives a larger facility which directly boots the bank performance. It is also recommended for Malaysian banks to improve their forecasting of macroeconomic fluctuations in future to achieve greater efficiency levels.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Mugeshmani, Supramaniam
author_facet	Mugeshmani, Supramaniam
author_sort	Mugeshmani, Supramaniam
title	The impact of globalisation towards bank performance in Malaysia
title_short	The impact of globalisation towards bank performance in Malaysia
title_full	The impact of globalisation towards bank performance in Malaysia
title_fullStr	The impact of globalisation towards bank performance in Malaysia
title_full_unstemmed	The impact of globalisation towards bank performance in Malaysia
title_sort	impact of globalisation towards bank performance in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2018
url	https://etd.uum.edu.my/7850/1/Depositpermission_s822979.pdf https://etd.uum.edu.my/7850/2/s822979_01.pdf
_version_	1747828277170405376
spelling	my-uum-etd.78502021-08-11T02:16:06Z The impact of globalisation towards bank performance in Malaysia 2018 Mugeshmani, Supramaniam Murugiah, Logasvathi School of Economics, Finance & Banking School of Economics, Finance & Banking HG Finance The purpose of this study is to shed some crucial light on the relationship between globalisation and performance of the banking system in Malaysia. This study uses a range of bank-characteristic determinants (internal factors), macroeconomic determinants (external factors) and three different dimensions of globalisation including economic globalisation, social globalisation and political globalisation to explain local commercial bank performance in Malaysia. This study uses regression analysis based on the secondary data for local commercial banks in Malaysia. The period for this secondary data is 10 years which is from the year 2008 till 2017. This study indicates that there is strong evidence stating both economic and politic globalisation have negatively significant effects on the bank performance in Malaysia. Meanwhile, social globalisation shows an insignificant result on this. As for bank characteristics variables, credit risk shows a negatively significant result towards bank performance in Malaysia while bank size shows a positive and significant result towards bank performance in Malaysia. Sole macroeconomic variable which is GDP does not show any significant result towards the bank performance in Malaysia. Therefore, central bank of Malaysia should give some incentive training for local bankers on how to adopt new supervision and risk management. This will give the local bankers some new knowledge to handle better risk management and directly boost the bank performance. Besides that, banks should develop their credit risk management to overcome any default loans and for better financial performances. Banks in Malaysia also need to expand their businesses as larger banks gives a larger facility which directly boots the bank performance. It is also recommended for Malaysian banks to improve their forecasting of macroeconomic fluctuations in future to achieve greater efficiency levels. 2018 Thesis https://etd.uum.edu.my/7850/ https://etd.uum.edu.my/7850/1/Depositpermission_s822979.pdf text eng public https://etd.uum.edu.my/7850/2/s822979_01.pdf text eng public https://sierra.uum.edu.my/record=b1699289~S1 masters masters Universiti Utara Malaysia Abiola, I., & Olausi, A. S. (2014). The Impact of Credit Management on the Commercial Banks Performance in Nigeria. International Journal of Management and Sustainability, 295-306. Akhisar, I., Tunay, B., & Tunay, N. (2015). The Effects of Innovations on Bank Performance: The Case of Electronic Banking Services. Journal of Social and Behavioral Sciences, 369-375. Al Manaseer, M., Al-Dahiyat, M. A., Sartawi, I., & Al-Hindawi , R. M. (2012). 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The impact of globalisation towards bank performance in Malaysia

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