Is there any relationship among the risks of banks in Malaysia?

Banking sector is the backbone of any country’s economy and involves in the risky business activity. It is also highly regulated industry mainly due its high risky activities. Among the risks faced by the banks, operating risk, liquidity risk, credit risk and market risk are the major risk. The ob...

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Main Authors: Htay, Sheila Nu Nu, Salman, Syed Ahmed
Format: Article
Language:English
English
Published: IDOSI Publication 2014
Subjects:
Online Access:http://irep.iium.edu.my/36464/
http://irep.iium.edu.my/36464/
http://irep.iium.edu.my/36464/1/Is_There_Any_Relationship_among_the_Risks_of_Banks_in_Malaysia.pdf
http://irep.iium.edu.my/36464/5/36464_Is%20there%20any%20relationship%20among_SCOPUS.pdf
id iium-36464
recordtype eprints
spelling iium-364642017-09-25T01:40:01Z http://irep.iium.edu.my/36464/ Is there any relationship among the risks of banks in Malaysia? Htay, Sheila Nu Nu Salman, Syed Ahmed HG1501 Banking Banking sector is the backbone of any country’s economy and involves in the risky business activity. It is also highly regulated industry mainly due its high risky activities. Among the risks faced by the banks, operating risk, liquidity risk, credit risk and market risk are the major risk. The objective of this study is to examine the correlation among these risks in the context of locally owned banks in Malaysia. The data has been collected from five listed banks for 10 years (2002-2011). Malaysian banking sector is chosen due to its unique nature of banking environment which promotes Malaysia to be the hub of Islamic banking and finance and which accommodate the dual banking system. Pearson correlation method is used to find out the relationship among the risk. The findings show that the risk relation varies across the banks and it is difficult to generalize the risk relationship nature in Malaysian banks. We suggest the banks need to manage the risks based on their risk portfolio and risk appetite. These findings contribute to enhance the knowledge on risk behaviors and will be the interest of regulators, investors and industrial players for future making rules, investment decision and plan the risk management. IDOSI Publication 2014 Article PeerReviewed application/pdf en http://irep.iium.edu.my/36464/1/Is_There_Any_Relationship_among_the_Risks_of_Banks_in_Malaysia.pdf application/pdf en http://irep.iium.edu.my/36464/5/36464_Is%20there%20any%20relationship%20among_SCOPUS.pdf Htay, Sheila Nu Nu and Salman, Syed Ahmed (2014) Is there any relationship among the risks of banks in Malaysia? World Applied Sciences Journal, 30. pp. 295-301. ISSN 1818-4952 DOI: 10.5829/idosi.wasj.2014.30.icmrp.38
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
English
topic HG1501 Banking
spellingShingle HG1501 Banking
Htay, Sheila Nu Nu
Salman, Syed Ahmed
Is there any relationship among the risks of banks in Malaysia?
description Banking sector is the backbone of any country’s economy and involves in the risky business activity. It is also highly regulated industry mainly due its high risky activities. Among the risks faced by the banks, operating risk, liquidity risk, credit risk and market risk are the major risk. The objective of this study is to examine the correlation among these risks in the context of locally owned banks in Malaysia. The data has been collected from five listed banks for 10 years (2002-2011). Malaysian banking sector is chosen due to its unique nature of banking environment which promotes Malaysia to be the hub of Islamic banking and finance and which accommodate the dual banking system. Pearson correlation method is used to find out the relationship among the risk. The findings show that the risk relation varies across the banks and it is difficult to generalize the risk relationship nature in Malaysian banks. We suggest the banks need to manage the risks based on their risk portfolio and risk appetite. These findings contribute to enhance the knowledge on risk behaviors and will be the interest of regulators, investors and industrial players for future making rules, investment decision and plan the risk management.
format Article
author Htay, Sheila Nu Nu
Salman, Syed Ahmed
author_facet Htay, Sheila Nu Nu
Salman, Syed Ahmed
author_sort Htay, Sheila Nu Nu
title Is there any relationship among the risks of banks in Malaysia?
title_short Is there any relationship among the risks of banks in Malaysia?
title_full Is there any relationship among the risks of banks in Malaysia?
title_fullStr Is there any relationship among the risks of banks in Malaysia?
title_full_unstemmed Is there any relationship among the risks of banks in Malaysia?
title_sort is there any relationship among the risks of banks in malaysia?
publisher IDOSI Publication
publishDate 2014
url http://irep.iium.edu.my/36464/
http://irep.iium.edu.my/36464/
http://irep.iium.edu.my/36464/1/Is_There_Any_Relationship_among_the_Risks_of_Banks_in_Malaysia.pdf
http://irep.iium.edu.my/36464/5/36464_Is%20there%20any%20relationship%20among_SCOPUS.pdf
first_indexed 2023-09-18T20:52:15Z
last_indexed 2023-09-18T20:52:15Z
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