The impact of housing loan/financing on risk performances in a dual banking system

The housing loan/financing are important product to the bank due to its the major contribution to the bank profit. This study investigates the impact of housing loan/financing and other variables with bank risk performance of dual banking system in Malaysia. The dependent variable used in this stud...

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Main Author:	Muhammad Arif Fadilah, Ishak
Format:	Thesis
Language:	eng eng eng
Published:	2018
Subjects:	HJ Public Finance
Online Access:	https://etd.uum.edu.my/8301/1/S821923_01.pdf https://etd.uum.edu.my/8301/2/S821923_02.pdf https://etd.uum.edu.my/8301/3/S821923_references.docx
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id	my-uum-etd.8301
record_format	uketd_dc
spelling	my-uum-etd.83012021-08-11T02:18:28Z The impact of housing loan/financing on risk performances in a dual banking system 2018 Muhammad Arif Fadilah, Ishak Isa, Mohamad Yazid Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HJ Public Finance The housing loan/financing are important product to the bank due to its the major contribution to the bank profit. This study investigates the impact of housing loan/financing and other variables with bank risk performance of dual banking system in Malaysia. The dependent variable used in this study is Non-Performing Loan (NPL) and Loan Loss Provision (LLP). This study uses six (6) independent variables which are divided into two parts; bank specific and macro-economic variables. Bank specific variables involve variables which are controllable within bank management and these include expenses (TEXPTI), total loan (TLTA), income (INCTL) and housing loan/financing (LPRO). Macroeconomic variables refer to the external factor variable and this study uses Gross Domestic Product (GDP) and Consumer Price Index (CPI) as proxies of macroeconomic variables. The data is restricted to commercial and Islamic banks in Malaysia within the period of 2002-2016. The results from Random and Fixed Effect models show that housing loan/financing has significant and negative impact on banks (NPL). As for other dependent variable, housing loan/financing also show significant relationship with banks (LLP). From the analysis, it can be concluded that even though commercial banks seem to dominate housing loan/financing market, but Islamic banks are capable to compete with commercial bank in this specific type of financing. Furthermore, housing loan/financing are very importance to the bank. It’s because the result show housing loan/financing are low risk portfolio in bank investment. As nature, the housing loan/financing will be backed by the mortgage and it will mitigate the risk in investment. 2018 Thesis https://etd.uum.edu.my/8301/ https://etd.uum.edu.my/8301/1/S821923_01.pdf text eng public https://etd.uum.edu.my/8301/2/S821923_02.pdf text eng public https://etd.uum.edu.my/8301/3/S821923_references.docx text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Isa, Mohamad Yazid
topic	HJ Public Finance
spellingShingle	HJ Public Finance Muhammad Arif Fadilah, Ishak The impact of housing loan/financing on risk performances in a dual banking system
description	The housing loan/financing are important product to the bank due to its the major contribution to the bank profit. This study investigates the impact of housing loan/financing and other variables with bank risk performance of dual banking system in Malaysia. The dependent variable used in this study is Non-Performing Loan (NPL) and Loan Loss Provision (LLP). This study uses six (6) independent variables which are divided into two parts; bank specific and macro-economic variables. Bank specific variables involve variables which are controllable within bank management and these include expenses (TEXPTI), total loan (TLTA), income (INCTL) and housing loan/financing (LPRO). Macroeconomic variables refer to the external factor variable and this study uses Gross Domestic Product (GDP) and Consumer Price Index (CPI) as proxies of macroeconomic variables. The data is restricted to commercial and Islamic banks in Malaysia within the period of 2002-2016. The results from Random and Fixed Effect models show that housing loan/financing has significant and negative impact on banks (NPL). As for other dependent variable, housing loan/financing also show significant relationship with banks (LLP). From the analysis, it can be concluded that even though commercial banks seem to dominate housing loan/financing market, but Islamic banks are capable to compete with commercial bank in this specific type of financing. Furthermore, housing loan/financing are very importance to the bank. It’s because the result show housing loan/financing are low risk portfolio in bank investment. As nature, the housing loan/financing will be backed by the mortgage and it will mitigate the risk in investment.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Muhammad Arif Fadilah, Ishak
author_facet	Muhammad Arif Fadilah, Ishak
author_sort	Muhammad Arif Fadilah, Ishak
title	The impact of housing loan/financing on risk performances in a dual banking system
title_short	The impact of housing loan/financing on risk performances in a dual banking system
title_full	The impact of housing loan/financing on risk performances in a dual banking system
title_fullStr	The impact of housing loan/financing on risk performances in a dual banking system
title_full_unstemmed	The impact of housing loan/financing on risk performances in a dual banking system
title_sort	impact of housing loan/financing on risk performances in a dual banking system
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2018
url	https://etd.uum.edu.my/8301/1/S821923_01.pdf https://etd.uum.edu.my/8301/2/S821923_02.pdf https://etd.uum.edu.my/8301/3/S821923_references.docx
_version_	1747828370839699456

The impact of housing loan/financing on risk performances in a dual banking system

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