Download or read book Liquidity Risk and Performance of Banking System in Malaysia written by Ameira Sohaimi and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent financial crisis raised the issue of understanding the liquidity risk of financial assets and institutions. This paper studies the ability that exposure and sensitivity to liquidity risk has in banking system in Malaysia.Purpose - This paper aims to analyze the liquidity risks and disclosure as well as to draw the relationship between liquidity risks and financial performance measures using deposits, cash, liquidity gap and also non-performing loans as the indicator to the banking system in Malaysia and evaluate the effect on banks' capital and reserve.Design/methodology/approach - Data are retrieved from the utilizing journals, books, Thompson Data Stream, balance sheet, income statements and report by Bank Negara Malaysia for the period 1997-2012. Multiple regressions are applied to assess the impact of liquidity risk on banks' capital and reserve. Findings - The results of the multiple regressions showed that liquidity risk affects banks capital and reserve significantly, with non-performing loan (NPLs), as the exacerbating the liquidity risk. They have a negative relationship with deposit, cash and liquidity gap.Research limitations/implications - The period studied in this paper is one year, due to availability of data. However, the sample period does not impair the findings since the sample includes 56 banks, which constitute the main part of the Malaysian banking system. Moreover, only NPLs do not used to measure of performance. Economic factors contributing to liquidity risk are not covered in this paper.Originality/value - This is paper are refer to journal who is research about the Pakistani banking system but the result from that journal are not influence the result in this paper. This paper helps in understanding the factors of liquidity risk and performance of banking system. Consequently, understanding their impact on the bank's capital and reserve of the banking system. Paper type - Research paper.
Download or read book The Malaysian Banking Industry written by Rozaimah Zainudin and published by Routledge. This book was released on 2018-06-27 with total page 141 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book provides students and academics in finance and banking with the most recent updates and changes in the Malaysian banking sector post-AFC period. The book explores the evolution of banking policies and practices after the "Tomyam Goong Crisis" and investigates the health of Malaysian banks via efficiency measurement. In addition, it also presents the evolution of bank risk management regulations and practices in Malaysia. The book also discusses the effectiveness of the Malaysian bank bailout strategy with comparison to the banks’ bailout in developed countries such as the US. This book is important and timely since there are very limited books in the market that cover the recent developments on Malaysian banking sectors post-AFC period. Hence, this book serves as the valuable resource for all finance and banking students, academic researchers, and practitioners not limited to the Asian region that require in-depth insights on the latest policies and practices in the Malaysian banking sector.
Download or read book Malaysia written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2014-04-15 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Technical Note focuses on financial sector performance, vulnerabilities, and derivatives in Malaysia. The note highlights that banking sector has undergone consolidation while competition has increased following measures implemented under the Financial Sector Master Plan 2001–2010. Malaysian banks are presently well capitalized with comfortable Tier 1 capital ratios. Stronger financial positions and risk management capability have enabled domestic banking groups to pursue overseas expansions, mostly within the region. The importance to some banks of overseas assets and earnings is reaching levels which, based on international experience, warrant a review of internal controls.
Download or read book Examining the Relationship Between Operational Risk credit Risk and Liquidity Risk with Performance of Malaysia Banks written by Maytham Hussein Saeed and published by . This book was released on 2015 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Malaysia written by International Monetary Fund. Asia and Pacific Dept and published by International Monetary Fund. This book was released on 2013-02-28 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: This assessment is a review of the financial environment of Malaysia. Like many other Asian countries, Malaysia experienced financial distress in the late 1990s, but the country’s policy reforms have moved it to a successful economy. A ten-year financial plan (2001–10) by Bank Negara Malaysia restructured the financial sector. Banks were well capitalized, household debts were strengthened, and securities and insurances were developed. Malaysia thus became the global center for Islamic finance. The authorities look on to a developed Malaysia by 2020.
Download or read book Liquidity Risk and Performance of Banking System written by Ahmed Arif and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose - The purpose of this paper is to examine liquidity risk in Pakistani banks and evaluate the effect on banks' profitability.Design/methodology/approach - Data are retrieved from the balance sheets, income statements and notes of 22 Pakistani banks during 2004-2009. Multiple regressions are applied to assess the impact of liquidity risk on banks' profitability.Findings - The results of multiple regressions show that liquidity risk affects bank profitability significantly, with liquidity gap and non-performing as the two factors exacerbating the liquidity risk. They have a negative relationship with profitability.Research limitations/implications - The period studied in this paper is 2004-2009, due to availability of the data. However, the sample period does not impair the findings since the sample includes 22 banks, which constitute the main part of the Pakistani banking system. Moreover, only profitability is used as the measure of performance. Economic factors contributing to liquidity risk are not covered in this paper.Originality/value - This is the first paper addressing the liquidity risk faced by the Pakistani banking system. Past researchers and practitioners have not given the proper attention to liquidity risk. This paper helps in understanding the factors of liquidity risk and their impact on the profitability of the banking system. The authors emphasise contemporary risk managers to mitigate liquidity risk by having sufficient cash resources. This will reduce the liquidity gap, thereby reducing the dependence on repo market.
Download or read book Money And Banking written by Wong Hock Tsen and published by Universiti Malaysia Sabah Press. This book was released on 2019-11-18 with total page 241 pages. Available in PDF, EPUB and Kindle. Book excerpt: Money and banking are about money, payment systems, banking and the central bank in an economy. The information on money and banking enables economic agents to make a better financial decision in the economy. Money is an exchange for goods and services and to settle debts. There is a link between the money supply and the monetary base. The money supply will increase or decrease when the monetary base or the money multiplier increases or decreases. The value of money will deteriorate fast when inflation is high. A payment system is an arrangement for exchange, which can be categorised into store-of-value systems and account-based systems. Asymmetric information can lead to adverse selection and moral hazard problems and thus, the asymmetric information problem can trigger the financial crisis problem. Banks can be commercial banks, investment banks and Islamic banks. Banks pool savings, provide safekeeping, accounting services and the payment systems, provide liquidity, diversify risk and provide financial information. Banking development is said to have a vital role in economic growth. Balance sheet management is important for the smooth running of the business of banks. Theory of term structure of interest rate attempts to explain the shape of the yield curve over time. Interest rate risk is a significant risk in the bank as a change in interest rate can affect both sides of the balance sheet of the bank. Financial innovation and bank consolidation are important issues in money and banking. The central bank manages monetary policy and oversees the financial system in an economy. The independence of the central bank can be a goal and operational independence. There are pro and con for the independence of the central bank and for the central bank to prick asset price bubble. This book can be divided into three main parts, namely money and the payment systems, banking and central bank. Chapter 1 to Chapter 2 explains money and the payment systems. Chapter 3 to Chapter 7 are banking. Chapter 8 is the central bank. Chapter 9 is concluding remarks. This book provides some fundamentals in money and banking for the economic agents, namely households, firms, governments and foreigners.
Download or read book Malaysia written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2014-04-15 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper summarizes the stress tests (ST) undertaken for the Malaysian banking system as part of the Financial Sector Assessment Program (FSAP). All banks were subject to solvency, liquidity and contagion tests in the macroeconomic stress testing set-up. The solvency tests assessed the resilience of the Malaysian banking system under three macroeconomic scenarios from 2012 to 2016. Single year bottom up (BU) sensitivity tests for Malaysian banks covered various single-factor credit and market risk shocks. A multi-factor BU sensitivity liquidity test was also carried out by participating banks and extended to not only key onshore banks but covered some Labuan entities and overseas subsidiaries. The findings suggest that the onshore banking system in Malaysia has substantial capital buffers to absorb credit losses on its credit risk exposures. Conventional banks can benefit from buffers provided by significant income as a first line of defense against credit losses. Some larger domestic banks benefit from income in terms of strong revenues from domestic operations as well as potential income from overseas operations.
Download or read book Powering the Digital Economy Opportunities and Risks of Artificial Intelligence in Finance written by El Bachir Boukherouaa and published by International Monetary Fund. This book was released on 2021-10-22 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.
Download or read book Bank based and Market based Financial Systems written by Asl? Demirgüç-Kunt and published by World Bank Publications. This book was released on 1999 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Managing Elevated Risk written by Iwan J. Azis and published by Springer. This book was released on 2014-12-11 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses the risks and opportunities that arise in Emerging Asia given the context of a new environment in global liquidity and capital flows. It elaborates on the need to ensure financial and overall economic stability in the region through improved financial regulation and other policy measures to minimize the emergent risks. "Managing Elevated Risk: Global Liquidity, Capital Flows, and Macroprudential Policy—An Asian Perspective" also explores the range of policy options that may be deployed to address the impact of global liquidity on domestic financial and socio-economic conditions including income inequality. The book is primarily aimed at policy makers, financial market regulators and supervisory agencies to help them improve national regulatory systems and to promote harmonization of national regulations and practices in line with global standards. Scholars and researchers will also gain important information and knowledge about the overall impacts of changing global liquidity from the book.
Download or read book Bank Size and Systemic Risk written by Mr.Luc Laeven and published by International Monetary Fund. This book was released on 2014-05-08 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The proposed SDN documents the evolution of bank size and activities over the past 20 years. It discusses whether this evolution can be explained by economies of scale or “too big to fail” subsidies. The paper then presents evidence on the extent to which bank size and market-based activities contribute to systemic risk. The paper concludes with policy messages in the area of capital regulation and activity restrictions to reduce the systemic risk posed by large banks. The analysis of the paper complements earlier Fund work, including SDN 13/04 and the recent GFSR chapter on “too big to fail” subsidies, and its policy message is in line with this earlier work.
Download or read book Asset Liability Management written by Siti Sufiya binti Shuib and published by . This book was released on 2013 with total page 134 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research evaluates the asset liability management of both conventional banks and Islamic banks in Malaysia, pre and post global financial crisis 2007/2008. This research is motivated by the fact that conventional banking system and Islamic banking system are operating on different frameworks and fundamentals. The purpose of this research study is to examine whether there are any significant differences between the Islamic banks in Malaysia and its conventional counterparts in terms of asset liability management. It is investigated from three aspects, which are interest (profit) rate risk management, credit risk management and liquidity risk management, before and after the global crisis. This research applies a descriptive method of data analysis as well as parametric and non-parametric tests, i.e. independent samples t-test and Mann Whitney U-test. The findings of this research suggest that there does not seem to be any significant differences between the conventional banks and the Islamic banks in terms of interest (profit) rate risk management (Net Interest Margin, Net Interest Income), credit risk management (Equity to Total Assets, Equity to Net Loans) and liquidity risk management (Liquidity Ratio, Net Loans to Total Assets Ratio). Limitation of this research is that the research focused on Malaysian data and to what extend Islamic banking systems is shariah compliant or not is not examined. The outcome of this research may highlight the risk that needs more significant attention in order to reduce the likelihood of exposures to the Islamic banks. Besides that, it may also highlight the need to implement new policy of asset liability composition in Islamic banks by the regulators. Further research on the area of Islamic banking system's asset liability management from the qualitative aspect is highly recommended, as there is limited literature on this area.
Download or read book Determinants of Bank Risks in a Dual Banking System written by Melina Abdul Karim and published by . This book was released on 2001 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Central Bank and the Financial System in Malaysia written by and published by . This book was released on 1999 with total page 686 pages. Available in PDF, EPUB and Kindle. Book excerpt: Malaysia's banking system and Bank Negara Malaysia, its central bank; commemoration volume.
Download or read book Impact of Credit Risk NPLs and Capital on Liquidity Risk of Malaysian Banks written by Azlan Ali and published by . This book was released on 2016 with total page 5 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the relationship between bank liquidity risk and credit risk and the impact of bank capital on liquidity risk. Using 19 Malaysian commercial banks data over 2002-2011 and applying dynamic panel data GMM estimation after controlling for bank-specific and macroeconomic variables, empirical results document a positive relationship between liquidity and credit risk and a non-linear U-shaped relationship between bank capital and liquidity risk.
Download or read book THE FACTORS AFFECTING THE LIQUIDITY RISK OF MALAYSIA S COMMERCIAL BANKS written by YEOH SZE JIA (TP043941) and published by . This book was released on 2019 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt:
