The determinants of bank lending behaviour of local commercial banks in Malaysia / Alia Farhana Masod

• Main Author: Masod, Alia Farhana
• Format: Student Project
• Language: English
• Published: 2019
• Subjects: Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product
• Online Access: https://ir.uitm.edu.my/id/eprint/90346/1/90346.pdf; https://ir.uitm.edu.my/id/eprint/90346/

This research study identifies the determinants of bank lending behavior for the local commercial banks in Malaysia relatively focus on non-performing loan, gross domestic product, bank size, loan provision, capital adequacy ratios and inflation. Motivated by the fact that most of the selected commercial banks have a volatile movement in their loan growth every year, this research will analyze the determinants using a sample of local commercial banks in Malaysia. The analytical method of Pooled ordinary least square (OLS) method through STATA 10.1 software had been used in assisting the result development and generation Employing a number of econometric estimation approaches for getting a good result, it is found that bank lending behavior is significantly depending on non-performing loan, bank’s capital adequacy ratio, size of the bank and macroeconomic factors which is gross domestic product. Upon that, the recommendations and suggestions for the future researcher to conduct further study will be more intriguing.