The Measurement and Determinants of Bank's Performance in Malaysia

The Measurement and Determinants of Bank's Performance in Malaysia

We analyzed the performance of domestic banks operating in Malaysia for the period of 7 years, from 2005 to 2011. In this study, we used financial ratios of banks by extracting components of CAMELS Model, namely, Capital adequacy, Asset quality, Management Quality, Earnings, Liquidity and Sensitivi...

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Main Author: Zuraida, Nasir
Format: Thesis
Language:eng
eng
Published: 2012
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/3099/1/ZURAIDA_NASIR.pdf
https://etd.uum.edu.my/3099/4/ZURAIDA_NASIR.pdf
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id my-uum-etd.3099
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Ahmad, Nor Hayati
topic HG Finance
spellingShingle HG Finance
Zuraida, Nasir
The Measurement and Determinants of Bank's Performance in Malaysia
description We analyzed the performance of domestic banks operating in Malaysia for the period of 7 years, from 2005 to 2011. In this study, we used financial ratios of banks by extracting components of CAMELS Model, namely, Capital adequacy, Asset quality, Management Quality, Earnings, Liquidity and Sensitivity to Market Risk. To identify the determinants of performance of the Malaysian domestic banks during 2005-2011 years, this study has chosen multiple regression analysis. The descriptive analysis suggested that the average ROA for the Malaysian commercial banks during the study period was closed to 1%(0.99%).The results show that bank performance (measured by ROA) of commercial banks in Malaysia was influenced by the Capital Adequacy ratio, Asset Quality ratio,Management Quality ratio, NIM, Liquidity ratio and Sensitivity to Market Risk ratio. Overall,CAMELS predicts 60.6% of ROA. The significant determinants of ROA among CAMELS measurement over the study period were Management Quality, Liquidity and Sensitivity to Market Risk.
format Thesis
qualification_name masters
qualification_level Master's degree
author Zuraida, Nasir
author_facet Zuraida, Nasir
author_sort Zuraida, Nasir
title The Measurement and Determinants of Bank's Performance in Malaysia
title_short The Measurement and Determinants of Bank's Performance in Malaysia
title_full The Measurement and Determinants of Bank's Performance in Malaysia
title_fullStr The Measurement and Determinants of Bank's Performance in Malaysia
title_full_unstemmed The Measurement and Determinants of Bank's Performance in Malaysia
title_sort measurement and determinants of bank's performance in malaysia
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2012
url https://etd.uum.edu.my/3099/1/ZURAIDA_NASIR.pdf
https://etd.uum.edu.my/3099/4/ZURAIDA_NASIR.pdf
_version_ 1747827498416078848
spelling my-uum-etd.30992016-04-24T03:19:05Z The Measurement and Determinants of Bank's Performance in Malaysia 2012-06 Zuraida, Nasir Ahmad, Nor Hayati Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance We analyzed the performance of domestic banks operating in Malaysia for the period of 7 years, from 2005 to 2011. In this study, we used financial ratios of banks by extracting components of CAMELS Model, namely, Capital adequacy, Asset quality, Management Quality, Earnings, Liquidity and Sensitivity to Market Risk. To identify the determinants of performance of the Malaysian domestic banks during 2005-2011 years, this study has chosen multiple regression analysis. The descriptive analysis suggested that the average ROA for the Malaysian commercial banks during the study period was closed to 1%(0.99%).The results show that bank performance (measured by ROA) of commercial banks in Malaysia was influenced by the Capital Adequacy ratio, Asset Quality ratio,Management Quality ratio, NIM, Liquidity ratio and Sensitivity to Market Risk ratio. Overall,CAMELS predicts 60.6% of ROA. The significant determinants of ROA among CAMELS measurement over the study period were Management Quality, Liquidity and Sensitivity to Market Risk. 2012-06 Thesis https://etd.uum.edu.my/3099/ https://etd.uum.edu.my/3099/1/ZURAIDA_NASIR.pdf text eng validuser https://etd.uum.edu.my/3099/4/ZURAIDA_NASIR.pdf text eng public masters masters Universiti Utara Malaysia Abdus,S.& M.Kabir,H.(2001).The performance of Malaysian Islamic Bank During 1984- 1997: An Exploratory Study. International Journal of Islamic Financial Services, Vol.1 No.3. 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