Bank weakness and loan supply interaction: a study on selected commercial banks in Malaysia / Siti Zumairah Omar

• Main Author: Omar, Siti Zumairah
• Format: Student Project
• Language: English
• Published: 2007
• Subjects: Bank loans. Bank credit. Commercial loans
• Online Access: http://ir.uitm.edu.my/id/eprint/33607/1/33607.pdf; http://ir.uitm.edu.my/id/eprint/33607/

This paper is to examine the interaction between bank weakness and loan supply. The sample used for the research includes the annual data from the year 1996 to 2006 and he selected commercial bank in Malaysia, which comprises Maybank, Hong Leong Bank, Am Bank, Public Bank and Affin Bank. The independent variables for this research is bank weakness which measure by various balance sheet variables including loans and advances, short-term asset and long-term liabilities of each bank. Loan growth rate, which represent loan supply, will be dependent variable. The Multiple Linear Regression used in order to determine the interaction between variables. The findings of this research show that the change in loans and advances, short-term asset and total liabilities would change the loan growth. So, it shows that the bank weakness is having an interaction with the loan supply in Malaysia.