The Analysis of the Banking Sector Performance in Malayia

• Main Author: Nor Fadilah, Bahari
• Format: Thesis
• Language: English
• Published: 2009
• Subjects: HG Finance
• Online Access: https://etd.uum.edu.my/3644/1/s88283.pdf; https://etd.uum.edu.my/3644/; http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo= 0000337155

The bank performance has been and still is a subject of much debate among researchers and academicians. Measuring bank performance is important in order to make sure the healthiness and stability of the banking institution in the country. This research had analysed the performance of Malaysia commercial banks for a four period from 2004 until 2007. The performance measurement will follow CAMEL framework which is performance of the banks will be analyse on capital adequacy, asset quality, management efficiency, earning, liquidity position and also risk and solvency. Study will focus on comparative performance between local and foreign banks through financial ratios analysis. Moreover, the study intends to identify the determinant of local and foreign banks performance. A total of 12 Malaysian commercial banks with 6 local banks and 6 foreign banks were financially analyzed. Statistical Package of Social Science (SPSS) was used to carry out t-test and regression analysis in intention to test whether there were significant relationship between dependant variables and independent variables and also measure comparative performance between local and foreign banks. The study found that in term of capital adequacy, earning and management efficiency do not show big differences between local and foreign banks performance. However, for liquidity and asset quality, foreign banks show a good performance than local banks.