Loan Moratorium Announcement and Stock Market Reactions: An Event Study Analysis (S/O 14829)
Loan moratorium has been a vital lifeline defence for many borrowers during the Covid-19 pandemic. Despite a huge amount fund has been spent to support borrowers, its resultant impact on banks remains unanswered. The objective of this study is to examine the impact of loan moratorium on Malaysian ba...
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| Main Author: | |
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| Format: | Monograph |
| Language: | English |
| Published: |
UUM
2022
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/31641/1/14829.pdf https://repo.uum.edu.my/id/eprint/31641/ |
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| Summary: | Loan moratorium has been a vital lifeline defence for many borrowers during the Covid-19 pandemic. Despite a huge amount fund has been spent to support borrowers, its resultant impact on banks remains unanswered. The objective of this study is to examine the impact of loan moratorium on Malaysian banks’ stock price performance. Utilising event study methodology, this study shows that bank investors react differently to different types of loan moratoriums. Bank investors positively value the moratorium that does not waive accrued interest and covers a wider group of borrowers. This study suggests that while the moratorium must be given to borrowers during difficult times, the government also needs to consider banks’ financial interests. Hence, the moratorium must feature accrued interest payment to keep banks’ prospects remain stable from the investors’ point of view. Moratorium pinjaman telah menjadi bantuan kewangan yang amat penting kepada peminjam bank semasa pandemik Covid-19. Walaupun jumlah yang besar telah diberi penangguhan oleh bank kepada peminjam, namun kesan peruntukkan ini kepada bank masih menjadi persoalan. Objektif kajian ini adalah untuk mengkaji kesan moratorium pinjaman terhadap prestasi harga stok bank di Malaysia. Dengan menggunakan kaedah kajian event study, kajian ini menunjukkan bahawa tindakbalas pelabur saham bank adalah berbeza mengikut jenis-jenis moratorium yang berlainan. Pelabur saham bank menerima baik moratorium pinjaman yang tidak mengetepikan faedah terakru dan juga yang diberikan kepada lebih ramai peminjam. Kajian ini mencadangkan bahawa disamping moratorium pinjaman perlu diberikan kepada peminjam di masa mereka mengalami kesukaran, kerajaan juga perlu mempertimbangkan kepentingan kewangan bank. Oleh itu, moratorium pinjaman perlu diberi tanpa mengetepikan faedah terakru demi memastikan prospek bank kekal stabil dari sudut pandangan para pelabur |
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