Financial crisis: Credit risks and macroeconomics dynamics

This paper explores the relationship between credit risk and selected macroeconomic dynamics in the Malaysian Banking Sector for the period 1995 – 2007. Secondary macroeconomic data were evaluated using Statistical regression to explain the relationship. The results show that there is no significant...

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Bibliographic Details
Main Author: Navamoney, Pondoss Balakumar
Format: Monograph
Language:English
Published: Universiti Utara Malaysia 2009
Subjects:
Online Access:http://repo.uum.edu.my/2455/1/Financial_Crisis-Credit_Risks_and_Macroeconomic_Dynamics.pdf
http://repo.uum.edu.my/2455/
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Summary:This paper explores the relationship between credit risk and selected macroeconomic dynamics in the Malaysian Banking Sector for the period 1995 – 2007. Secondary macroeconomic data were evaluated using Statistical regression to explain the relationship. The results show that there is no significant relationship between the credit risk and macroeconomic dynamics studied in the Malaysian Banking. sector.Nonetheless, the study reaffirms the earlier research findings that the robust loan growth during periods of strong GDP are sometimes followed by increasing default rate, holds true in Malaysian Banking Sector.