Credit Risk And Profitability Performance Of Malaysian Local Commercial Banks For The Period 2005 – 2012

Lee, Kelvin Yong Ming. (2014) Credit Risk And Profitability Performance Of Malaysian Local Commercial Banks For The Period 2005 – 2012. [Final Year Project Report] (Unpublished)

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Abstract

This paper examines the relationship between credit risk and profitability performance of the Malaysian local commercial banks. All the local commercial banks in Malaysia (Maybank, CIMB Bank, Hong Leong Bank, Public Bank, RHB Bank, AmBank, Alliance Bank, and Affin Bank) are the samples used in this study and the sample period covering the period from 2005 to 2012. The empirical tests employed in this study are Descriptive Statistics, Ordinary Least Square (OLS) regression analysis, Hausman test, Diagnostic Testing and Granger causality test. The findings show that the non-performing loan to total loan ratio (NPL/LA) and the ratio of loan loss provision to total loan (LLP/LA) negatively affect the profitability performance that measured by return on asset (ROA); meanwhile the total loan to total deposit ratio (LA/TD) found to be positively affect the return on asset (ROA).

Item Type: Final Year Project Report
Additional Information: Project Report (BFin) -- Universiti Malaysia Sarawak, 2014.
Uncontrolled Keywords: Malaysian local commercial banks, credit risk and profitability, Diagnostic Testing and Granger causality test, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, undergraduate, research, Universiti Malaysia Sarawak.
Subjects: H Social Sciences > HG Finance
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Gani
Date Deposited: 09 May 2019 00:55
Last Modified: 11 Jun 2019 06:37
URI: http://ir.unimas.my/id/eprint/24765

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