Performance of Malaysian local banks: Before & after merger
Malaysia is experiencing another round of crisis brought about by the global credit crunch. With the impending weaker economy, the resiliency of Malaysian banking sector would again be tested. This paper will gain insights into the performance of Malaysian local banks after the consolidation of bank...
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| Main Author: | |
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| Format: | Monograph |
| Language: | English |
| Published: |
Universiti Utara Malaysia
2009
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| Subjects: | |
| Online Access: | http://repo.uum.edu.my/2460/1/Performance_of_Malaysian_Local_Banks-Before_and_After_Merger.pdf http://repo.uum.edu.my/2460/ |
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| Summary: | Malaysia is experiencing another round of crisis brought about by the global credit crunch. With the impending weaker economy, the resiliency of Malaysian banking sector would again be tested. This paper will gain insights into the performance of Malaysian local banks after the consolidation of banking sector in year 2000 which was expedited by the Asian Financial crisis.The objective of this paper is to find out whether the local banks have achieved performance efficiency during the post merger period namely in the areas of profitability, cost savings and shareholders’ wealth.Comparison and analysis of ratios are used to compare the performance of local banks
during the pre-merger period (1999-2000) and post-merger period (2006-2007).Banks’ mergers in Malaysia do not necessary improve their profitability as measured by return on asset (ROA). Cost savings as measured by expenses to revenue ratio indicated mixed result whereas almost all the banks had shown improvement in expenses to asset ratio. Most of the banks had improved in shareholders wealth. |
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