Download or read book Determinants of Commercial Bank Profitability in Malaysia written by Balachandher K. Guru and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Determinants of Commercial Bank and Finance Company Profitability in Malaysia written by Balachandher Krishnan Guru and published by . This book was released on 1998 with total page 616 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Determinants of Commercial Banks Profitability in Malaysia 2001 2005 written by Dorius bin Gumu and published by . This book was released on 2007 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Determinants of Commercial Bank Interest Margins and Profitability written by Asl? Demirgüç-Kunt and published by World Bank Publications. This book was released on 1998 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: March 1998 Differences in interest margins reflect differences in bank characteristics, macroeconomic conditions, existing financial structure and taxation, regulation, and other institutional factors. Using bank data for 80 countries for 1988-95, Demirgüç-Kunt and Huizinga show that differences in interest margins and bank profitability reflect various determinants: * Bank characteristics. * Macroeconomic conditions. * Explicit and implicit bank taxes. * Regulation of deposit insurance. * General financial structure. * Several underlying legal and institutional indicators. Controlling for differences in bank activity, leverage, and the macroeconomic environment, they find (among other things) that: * Banks in countries with a more competitive banking sector-where banking assets constitute a larger share of GDP-have smaller margins and are less profitable. The bank concentration ratio also affects bank profitability; larger banks tend to have higher margins. * Well-capitalized banks have higher net interest margins and are more profitable. This is consistent with the fact that banks with higher capital ratios have a lower cost of funding because of lower prospective bankruptcy costs. * Differences in a bank's activity mix affect spread and profitability. Banks with relatively high noninterest-earning assets are less profitable. Also, banks that rely largely on deposits for their funding are less profitable, as deposits require more branching and other expenses. Similarly, variations in overhead and other operating costs are reflected in variations in bank interest margins, as banks pass their operating costs (including the corporate tax burden) on to their depositors and lenders. * In developing countries foreign banks have greater margins and profits than domestic banks. In industrial countries, the opposite is true. * Macroeconomic factors also explain variation in interest margins. Inflation is associated with higher realized interest margins and greater profitability. Inflation brings higher costs-more transactions and generally more extensive branch networks-and also more income from bank float. Bank income increases more with inflation than bank costs do. * There is evidence that the corporate tax burden is fully passed on to bank customers in poor and rich countries alike. * Legal and institutional differences matter. Indicators of better contract enforcement, efficiency in the legal system, and lack of corruption are associated with lower realized interest margins and lower profitability. This paper-a product of the Development Research Group-is part of a larger effort in the group to study bank efficiency.
Download or read book An Analysis of Macroeconomic Determinants of Commercial Banks Profitability in Malaysia for the Period 1995 2011 written by Mirza Vejzagic and published by . This book was released on 2018 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the macroeconomics factors that stimulate banks' profitability. A standard regression model is used to identify macroeconomics determinants that significantly contribute to profitability, expressed through return on assets (ROA), of commercial banks in Malaysia. The determinant factors under consideration are real gross domestic product growth, inflation (expressed through consumer price index), and real interest rates. The paper incorporates seven banks, namely, CIMB, Public Bank, Maybank, Affin Bank, RHB Bank, Alliance Bank and Hong Leong Bank for the period 1995 to 2011. In order to present research in most accurate way, the paper looked into the relationship between profitability of all banks (expressed through mean of ROAs), as well as every single individual bank, with mentioned macroeconomic determinants. Model demonstrated overall significance for mean of all banks, and three individual banks, namely, Maybank, Public Bank and Hong Leong Bank. Findings show that for mean of all banks, as well as Maybank, Public Bank and Hong Leong Bank, real GDP is significant and have positive relationship with confidence level of 1% and 5%. This paper illustrated that in Malaysian case, inflation (CPI) is not significant for mean of all banks and Maybank. On the contrary, for Public Bank and Hong Leong Bank inflation (CPI) is significant, with negative relationship. Lastly, the outcomes of this paper exemplified that in Malaysia real interest rate has no relation with banks' profitability. From the empirical estimation, it is suggested that for the banks' profitability the growth of gross domestic product must be in place in order to stimulate lending and borrowing activities. In addition, it is proposed that for the banking sector in order to preserve on profitability, the anticipation of inflation must be in place to shelter revenue and reduce cost of the banks.
Download or read book Profitability Determinants of Commercial Banks in Malaysia After the 1997 Financial Crisis written by Mona Abdullah Yousef Al - Ademi and published by . This book was released on 2009 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Determinants of Islamic Banks Profitability in Malaysia written by Zulaiha Chua and published by . This book was released on 2013 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study seeks to examine how internal and external determinants affect the profitability of Malaysian Islamic Banks. Utilizing a panel data of 6 Malaysian Islamic Banks over the period 2007-2011, the empirical findings suggest that all the internal determinant variables have a statistically significantly impact on bank profitability. Consistent with previous finding, during the period under study, the results suggest that gross domestic product (GDP) help to explain the variations in the Malaysian Islamic Banks while inflation has a negative impact on bank profitability.
Download or read book Key Determinants of Bank Profitability in Indonesia Malaysia Singapore Thailand written by Wei Wong and published by . This book was released on 1996 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Money and Banking in Malaysia written by and published by . This book was released on 1994 with total page 632 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Financial Structure and Bank Profitability written by Asl? Demirgüç-Kunt and published by World Bank Publications. This book was released on 2000 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Countries differ in the extent to which their financial systems are bank-based or market-based. The financial systems of Germany and Japan, for example, are considered bank-based because banks play a leading role in mobilizing savings, allocating capital, overseeing investment decisions of corporate managers, and providing risk management vehicles. The systems of the United States, and the United Kingdom are considered more market-based. Using bank-level data for a large number of industrial and developing countries, the authors present evidence about the impact of financial development, and structure on bank performance. They measure the relative importance of bank or market finance by the relative size of stock aggregates, by relative trading or transaction volumes, and by indicators of relative efficiency. They show that in developing countries, both banks and stock markets are less developed, but financial systems tend to be more bank-based. The richer the country, the more active are all financial intermediaries. The greater the development of a country's banks, the tougher is the competition, the greater is the efficiency, and the lower are the bank margins, and profits. The more under-developed the stock market, the greater are the bank profits. But financial structure per se does not have a significant, independent influence on bank margins, and profits.
Download or read book The Determinants of Commercial Banking Profitability in Low Middle and High Income Countries written by Andreas Dietrich and published by . This book was released on 2014 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a broad bank-level dataset and the GMM estimator technique described by Arellano and Bover (1995), this paper analyzes how bank-specific characteristics, macroeconomic variables, and industry-specific factors affect the profitability of 10,165 commercial banks across 118 countries over the period from 1998 to 2012. Grouping the countries according to three income levels, we show that the determinants of bank profitability included in our model can explain existing profitability differences among commercial banks in low-, middle-, and high-income countries. The profitability determinants vary quite widely across the different levels of income in terms of significance, sign and size of the effect. The level of income has thus an important impact on the determinants of bank profitability.
Download or read book The Determinants of Commercial Bank Profitability in Indonesia written by Arief Putranto and published by . This book was released on 2014 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper seeks to examine the determinants of bank profitability in Indonesia. The sample used is a panel data of 25 publicly traded Indonesian commercial banks in 2007-2012 period. This research used Return on Assets (ROA) and Return on Equity (ROE) as proxies of profitability and analyze how variables from three categories that is internal, external, and market share variable affects them. We found some intriguing findings from this study, namely, the effect of CAR that we found to be negative towards profitability, which indicated that the capitals of Indonesian banks are beyond their optimal level. Then we found that Loan to Deposit ratio and Market Share of Credit, contrary to common sense, also demonstrated a negative effect, which appears to be caused by the 2008-2010 Global Financial Crisis. Last, we also found that Inflation positively affect profitability, which seemingly caused by a demand-pull type of inflation.
Download or read book Determinants of Commercial Bank Interest Margins and Profitability written by Asli Demirgüç-Kunt and published by . This book was released on 2016 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Differences in interest m ...
Download or read book The Bank Credit Analysis Handbook written by Jonathan Golin and published by John Wiley & Sons. This book was released on 2013-03-18 with total page 748 pages. Available in PDF, EPUB and Kindle. Book excerpt: A hands-on guide to the theory and practice of bank credit analysis and ratings In this revised edition, Jonathan Golin and Philippe Delhaise expand on the role of bank credit analysts and the methodology of their practice. Offering investors and practitioners an insider's perspective on how rating agencies assign all-important credit ratings to banks, the book is updated to reflect today's environment of increased oversight and demands for greater transparency. It includes international case studies of bank credit analysis, suggestions and insights for understanding and complying with the Basel Accords, techniques for reviewing asset quality on both quantitative and qualitative bases, explores the restructuring of distressed banks, and much more. Features charts, graphs, and spreadsheet illustrations to further explain topics discussed in the text Includes international case studies from North America, Asia, and Europe that offer readers a global perspective Offers coverage of the Basel Accords on Capital Adequacy and Liquidity and shares the authors' view that a bank could be compliant under those and other regulations without being creditworthy A uniquely practical guide to bank credit analysis as it is currently practiced around the world, The Bank Credit Analysis Handbook, Second Edition is a must-have resource for equity analysts, credit analysts, and bankers, as well as wealth managers and investors.
Download or read book An Investigation Into the Extent and Determinants of Bank Profitability written by Ahmad M.A.M. Sharif and published by . This book was released on 2000 with total page 500 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Determinants of Bank Perfomance in Malaysia written by Aizat Bin Alias @ Abdul Aziz and published by . This book was released on 2012 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper aims to compare and investigate the performance of Islamic banks against conventional banks, and foreign Islamic banks against domestic Islamic banks in Malaysia for the period 2006 to 2010. The study uses 33 banks in Malaysia comprise of 18 commercial banks, 15 Islamic banks, I 0 domestic Islamic banks, and 5 foreign Islamic banks. Financial ratios of return on assets (ROA) and return on equity (ROE) are used as dependent variables and independent variables comprise of loan loss provisions to total assets, net loans to total assets, total overheads to total assets, shareholders equity ratio, bank size (total assets), gross domestic products and inflation rate. Descriptive, correlation, multiple regression and test of significance for equality of means analyses were employed to test the hypotheses. In general, the study found that the independent variables respond inconsistently on dependent variables based on type of the banks. Furthermore, the study found that the conventional banks perform better than Islamic banks in term of profitability, size and assets quality. Same goes to domestic Islamic banks where they perform better than foreign Islamic banks in term of profitability, size and asset quality.
Download or read book Bank Profitability and Financial Stability written by Ms.TengTeng Xu and published by International Monetary Fund. This book was released on 2019-01-11 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the role of non-interest income and retail-oriented business models. We then conduct panel regression analysis to examine the empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for 431 publicly traded banks (U.S., advanced Europe, and GSIBs) from 2004 to 2017. Results reveal that profitability is negatively associated with both a bank’s contribution to systemic risk and its idiosyncratic risk, and an over-reliance on non-interest income, wholesale funding and leverage is associated with higher risks. Low competition is associated with low idiosyncratic risk but a high contribution to systemic risk. Lastly, the problem loans ratio and the cost-to-income ratio are found to be key factors that influence bank profitability. The paper’s findings suggest that policy makers should strive to better understand the source of bank profitability, especially where there is an over-reliance on market-based non-interest income, leverage, and wholesale funding.
