Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan

When banks are considered fragile and what trigger them to be fragile? This research attempts to answer those questions by measuring bank fragility and identify probable factors determining bank fragility of the Malaysian commercial banking sector during the period of 1996-2011. Previous studies hav...

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Bibliographic Details
Main Author:	Mazlan, Nurul Farhana
Format:	Thesis
Language:	English
Published:	2014
Subjects:	Bank loans. Bank credit. Commercial loans Bank reserves. Bank liquidity. Loan loss reserves
Online Access:	http://ir.uitm.edu.my/id/eprint/14286/ http://ir.uitm.edu.my/id/eprint/14286/1/TM_NURUL%20FARHANA%20MAZLAN%20BM%2014_5.pdf

id	uitm-14286
recordtype	eprints
spelling	uitm-142862016-08-11T07:56:09Z http://ir.uitm.edu.my/id/eprint/14286/ Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan Mazlan, Nurul Farhana Bank loans. Bank credit. Commercial loans Bank reserves. Bank liquidity. Loan loss reserves When banks are considered fragile and what trigger them to be fragile? This research attempts to answer those questions by measuring bank fragility and identify probable factors determining bank fragility of the Malaysian commercial banking sector during the period of 1996-2011. Previous studies have employed different methods to measure the bank fragility. Among the methods used are event study, "government intervention" in term of liquidity support to detect bank fragility and some prefers to use indicator such as Non-Performing Loan (NPL) to identify bank systemic risk. This research constructs the Banking Sector Fragility Index (BSFI) to measure fragility of commercial bank during the period studied. The index is then used to identify the determinants of commercial bank fragility. Results of BSFI show that the commercial banking sectors are in fragile condition from 1996 until 2000 and in a highly fragile stage between 1996 and 1998 since the BSFI are less than -0.50. In addition, findings based on the Logit regression analysis infer that the likelihood of Malaysian commercial banks to be fragile is significantly determined by total loans to total assets and interbank rate. While, Pooled Ordinary Least Squares (OLS) proved that bank specific factors and macro-economic factors have relationship with the level of BSFI. 2014 Thesis NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/14286/1/TM_NURUL%20FARHANA%20MAZLAN%20BM%2014_5.pdf Mazlan, Nurul Farhana (2014) Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan. Masters thesis, Universiti Teknologi MARA.
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Bank loans. Bank credit. Commercial loans Bank reserves. Bank liquidity. Loan loss reserves
spellingShingle	Bank loans. Bank credit. Commercial loans Bank reserves. Bank liquidity. Loan loss reserves Mazlan, Nurul Farhana Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
description	When banks are considered fragile and what trigger them to be fragile? This research attempts to answer those questions by measuring bank fragility and identify probable factors determining bank fragility of the Malaysian commercial banking sector during the period of 1996-2011. Previous studies have employed different methods to measure the bank fragility. Among the methods used are event study, "government intervention" in term of liquidity support to detect bank fragility and some prefers to use indicator such as Non-Performing Loan (NPL) to identify bank systemic risk. This research constructs the Banking Sector Fragility Index (BSFI) to measure fragility of commercial bank during the period studied. The index is then used to identify the determinants of commercial bank fragility. Results of BSFI show that the commercial banking sectors are in fragile condition from 1996 until 2000 and in a highly fragile stage between 1996 and 1998 since the BSFI are less than -0.50. In addition, findings based on the Logit regression analysis infer that the likelihood of Malaysian commercial banks to be fragile is significantly determined by total loans to total assets and interbank rate. While, Pooled Ordinary Least Squares (OLS) proved that bank specific factors and macro-economic factors have relationship with the level of BSFI.
format	Thesis
author	Mazlan, Nurul Farhana
author_facet	Mazlan, Nurul Farhana
author_sort	Mazlan, Nurul Farhana
title	Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
title_short	Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
title_full	Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
title_fullStr	Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
title_full_unstemmed	Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan
title_sort	determinants of bank fragility: evidence from malaysian commercial banks / nurul farhana mazlan
publishDate	2014
url	http://ir.uitm.edu.my/id/eprint/14286/ http://ir.uitm.edu.my/id/eprint/14286/1/TM_NURUL%20FARHANA%20MAZLAN%20BM%2014_5.pdf
first_indexed	2023-09-18T22:51:17Z
last_indexed	2023-09-18T22:51:17Z
_version_	1777417560964202496

Determinants of bank fragility: evidence from Malaysian commercial banks / Nurul Farhana Mazlan

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