Key Risk Determinants 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 associ...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
UUM Press
2020-01-01
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| Series: | Malaysian Management Journal |
| Online Access: | https://www.scienceopen.com/document?vid=c4118c04-4fab-4539-982b-a0b33a1af4a8 |
| _version_ | 1828005880719736832 |
|---|---|
| author | Nor Hayati Ahmad Mohamed Ariff |
| author_facet | Nor Hayati Ahmad Mohamed Ariff |
| author_sort | Nor Hayati Ahmad |
| collection | DOAJ |
| description | 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 significantly 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. |
| first_indexed | 2024-04-10T07:48:42Z |
| format | Article |
| id | doaj.art-511b4d843bb74dcba6b90b95405cd587 |
| institution | Directory Open Access Journal |
| issn | 0128-6226 2289-6651 |
| language | English |
| last_indexed | 2024-04-10T07:48:42Z |
| publishDate | 2020-01-01 |
| publisher | UUM Press |
| record_format | Article |
| series | Malaysian Management Journal |
| spelling | doaj.art-511b4d843bb74dcba6b90b95405cd5872023-02-23T10:22:36ZengUUM PressMalaysian Management Journal0128-62262289-66512020-01-0110.32890/mmj.8.1.2004.8755Key Risk Determinants of Listed Deposit-Taking Institutions in MalaysiaNor Hayati AhmadMohamed AriffRisk 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 significantly 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.https://www.scienceopen.com/document?vid=c4118c04-4fab-4539-982b-a0b33a1af4a8 |
| spellingShingle | Nor Hayati Ahmad Mohamed Ariff Key Risk Determinants of Listed Deposit-Taking Institutions in Malaysia Malaysian Management Journal |
| title | Key Risk Determinants of Listed Deposit-Taking Institutions in Malaysia |
| title_full | Key Risk Determinants of Listed Deposit-Taking Institutions in Malaysia |
| title_fullStr | Key Risk Determinants of Listed Deposit-Taking Institutions in Malaysia |
| title_full_unstemmed | Key Risk Determinants of Listed Deposit-Taking Institutions in Malaysia |
| title_short | Key Risk Determinants of Listed Deposit-Taking Institutions in Malaysia |
| title_sort | key risk determinants of listed deposit taking institutions in malaysia |
| url | https://www.scienceopen.com/document?vid=c4118c04-4fab-4539-982b-a0b33a1af4a8 |
| work_keys_str_mv | AT norhayatiahmad keyriskdeterminantsoflisteddeposittakinginstitutionsinmalaysia AT mohamedariff keyriskdeterminantsoflisteddeposittakinginstitutionsinmalaysia |