Key risk determinant of listed deposit-taking institutions in Malaysia
Risk management is a critical function in banking operations in the wake of several banking crises. However; we find few studies on risk management and a lack of empirical investigation on factors affecting the risk of Malaysian banks. These gaps have motivated us to identify the main factors assoc...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Utara Malaysia
2004
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| Subjects: | |
| Online Access: | http://repo.uum.edu.my/310/1/Nor_Hayati_Ahmad.pdf http://repo.uum.edu.my/310/ http://mmj.uum.edu.my/ |
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| Summary: | Risk management is a critical function in banking operations in the wake of several banking crises.
However; we find few studies on risk management and a lack of empirical investigation on factors affecting the risk of Malaysian banks. These gaps have motivated us to identify the main factors associated with the risk of locally listed deposit-taking institutions. The findings show that three factors were signlficantly associated with unsystematic risk, while the systematic risk and the total risk of these
deposit-taking institutions were significantly affected by four main factors. These four factors namely non-performing loans, cost of funds, loan to deposit ratio and inter-bank offered rate however; were found to have a more profound effect on the total risk than on the systematic risk or the unsystematic risk of Malaysian deposit-taking institutions. |
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