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...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Giordano Dell'Amore Foundation, Italy
2009
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/5257/1/SUFIAN.pdf |
| _version_ | 1825644643952361472 |
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| author | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_facet | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_sort | Sufian, Fadzlan |
| collection | IIUM |
| 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. |
| first_indexed | 2024-03-05T22:35:49Z |
| format | Article |
| id | oai:generic.eprints.org:5257 |
| institution | International Islamic University Malaysia |
| language | English |
| last_indexed | 2024-03-05T22:35:49Z |
| publishDate | 2009 |
| publisher | Giordano Dell'Amore Foundation, Italy |
| record_format | dspace |
| spelling | oai:generic.eprints.org: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 |
| spellingShingle | HG1501 Banking Sufian, Fadzlan Habibullah, Muzafar Shah The Impact of Asian Financial Crisis on Bank: Empirical Evidence from Thailand and Malaysia |
| title | 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_short | 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 |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/5257/1/SUFIAN.pdf |
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