The Impact of Asian Financial Crisis on Bank: Empirical Evidence from Thailand and Malaysia

By using bank level data this paper examines how bank specific characteristics and the macroeconomic environment affects the profitability of the Thailand and Malaysian banking sectors over the period 1992-2003. All the variables are significant although their impact is not always the same for Thail...

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Main Authors:	Sufian, Fadzlan, Habibullah, Muzafar Shah
Format:	Article
Language:	English
Published:	Giordano Dell'Amore Foundation, Italy 2009
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/5257/ http://irep.iium.edu.my/5257/ http://irep.iium.edu.my/5257/1/SUFIAN.pdf

id	iium-5257
recordtype	eprints
spelling	iium-52572011-12-07T03:45:08Z http://irep.iium.edu.my/5257/ The Impact of Asian Financial Crisis on Bank: Empirical Evidence from Thailand and Malaysia Sufian, Fadzlan Habibullah, Muzafar Shah HG1501 Banking By using bank level data this paper examines how bank specific characteristics and the macroeconomic environment affects the profitability of the Thailand and Malaysian banking sectors over the period 1992-2003. All the variables are significant although their impact is not always the same for Thailand and Malaysian banks. We find that liquidity is negatively related to Thailand banks’ profitability, but not in Malaysia, while network embeddedness has negative relationship with Malaysian banks, but not Thailand banks. As for the impact of macroeconomic indicators, we find that economic growth is positively related to Thailand banks’ profitability only during the pre-crisis period. The impact of inflation is positive on Thailand banks’ profitability during the crisis and post-crisis periods, while inflation is negatively related to Malaysian banks’ profitability during the crisis period. We find that the Thailand banking sector has been relatively more profitable during the pre-crisis period, while the opposite is true for the Malaysian banking sector. Giordano Dell'Amore Foundation, Italy 2009 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5257/1/SUFIAN.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2009) The Impact of Asian Financial Crisis on Bank: Empirical Evidence from Thailand and Malaysia. Savings and Development, 33 (2). pp. 1-29. http://www.fgda.org/listarivisteuk.php?Id=1
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Sufian, Fadzlan Habibullah, Muzafar Shah The Impact of Asian Financial Crisis on Bank: Empirical Evidence from Thailand and Malaysia
description	By using bank level data this paper examines how bank specific characteristics and the macroeconomic environment affects the profitability of the Thailand and Malaysian banking sectors over the period 1992-2003. All the variables are significant although their impact is not always the same for Thailand and Malaysian banks. We find that liquidity is negatively related to Thailand banks’ profitability, but not in Malaysia, while network embeddedness has negative relationship with Malaysian banks, but not Thailand banks. As for the impact of macroeconomic indicators, we find that economic growth is positively related to Thailand banks’ profitability only during the pre-crisis period. The impact of inflation is positive on Thailand banks’ profitability during the crisis and post-crisis periods, while inflation is negatively related to Malaysian banks’ profitability during the crisis period. We find that the Thailand banking sector has been relatively more profitable during the pre-crisis period, while the opposite is true for the Malaysian banking sector.
format	Article
author	Sufian, Fadzlan Habibullah, Muzafar Shah
author_facet	Sufian, Fadzlan Habibullah, Muzafar Shah
author_sort	Sufian, Fadzlan
title	The Impact of Asian Financial Crisis on Bank: Empirical Evidence from Thailand and Malaysia
title_short	The Impact of Asian Financial Crisis on Bank: Empirical Evidence from Thailand and Malaysia
title_full	The Impact of Asian Financial Crisis on Bank: Empirical Evidence from Thailand and Malaysia
title_fullStr	The Impact of Asian Financial Crisis on Bank: Empirical Evidence from Thailand and Malaysia
title_full_unstemmed	The Impact of Asian Financial Crisis on Bank: Empirical Evidence from Thailand and Malaysia
title_sort	impact of asian financial crisis on bank: empirical evidence from thailand and malaysia
publisher	Giordano Dell'Amore Foundation, Italy
publishDate	2009
url	http://irep.iium.edu.my/5257/ http://irep.iium.edu.my/5257/ http://irep.iium.edu.my/5257/1/SUFIAN.pdf
first_indexed	2023-09-18T20:13:46Z
last_indexed	2023-09-18T20:13:46Z
_version_	1777407650642788352

The Impact of Asian Financial Crisis on Bank: Empirical Evidence from Thailand and Malaysia

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