Determinants of lending behaviour in Malaysia / Nur Atikah Mohd Lani

With the unstable economic condition in Malaysia nowadays, financial institutions have a lot of doubts as to how much lending rates they can offer because the limit is whatever the market will bear but will the market participants be able to bear? As we know, financial institutions do grant loans an...

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Main Author: Mohd Lani, Nur Atikah
Format: Student Project
Language:English
Published: 2017
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/32946/2/32946.pdf
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author Mohd Lani, Nur Atikah
author_facet Mohd Lani, Nur Atikah
author_sort Mohd Lani, Nur Atikah
collection UITM
description With the unstable economic condition in Malaysia nowadays, financial institutions have a lot of doubts as to how much lending rates they can offer because the limit is whatever the market will bear but will the market participants be able to bear? As we know, financial institutions do grant loans and advances to individuals, business organizations as well as government in order to enable them embark on investment and development activities as a mean of aiding their growth in particular or contributing toward the economic development of a country in general but this raises a question whether the objective can be achieved successfully or not. Consequently, the main objective of the study is to find out the determinants of the lending behaviour in Malaysia by using time series in Multiple Linear Regression model for empirical analysis from year 1986 to 2015. The lending behaviour in Malaysia are measured by Commercial banks and other lending in Malaysia. Besides, this research uses gross domestic product, lending interest rates, reserves requirement, inflation, exchange rates, and risk premium as the determinants for lending behaviour in Malaysia. However, the result reveals that there is only Inflation, Exchange Rates and Risk Premium has significant relationship with lending behaviour in Malaysia whereas gross domestic product, lending interest rates and reserves requirement are not significant with lending behaviour in Malaysia. Since, Malaysian economic market start going bad, we need to focus on more factors in this issue to measure the effectiveness of Malaysian monetary policy.
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spelling oai:ir.uitm.edu.my:329462020-09-10T06:39:27Z https://ir.uitm.edu.my/id/eprint/32946/ Determinants of lending behaviour in Malaysia / Nur Atikah Mohd Lani Mohd Lani, Nur Atikah Interest rates. Interest tables Monetary policy With the unstable economic condition in Malaysia nowadays, financial institutions have a lot of doubts as to how much lending rates they can offer because the limit is whatever the market will bear but will the market participants be able to bear? As we know, financial institutions do grant loans and advances to individuals, business organizations as well as government in order to enable them embark on investment and development activities as a mean of aiding their growth in particular or contributing toward the economic development of a country in general but this raises a question whether the objective can be achieved successfully or not. Consequently, the main objective of the study is to find out the determinants of the lending behaviour in Malaysia by using time series in Multiple Linear Regression model for empirical analysis from year 1986 to 2015. The lending behaviour in Malaysia are measured by Commercial banks and other lending in Malaysia. Besides, this research uses gross domestic product, lending interest rates, reserves requirement, inflation, exchange rates, and risk premium as the determinants for lending behaviour in Malaysia. However, the result reveals that there is only Inflation, Exchange Rates and Risk Premium has significant relationship with lending behaviour in Malaysia whereas gross domestic product, lending interest rates and reserves requirement are not significant with lending behaviour in Malaysia. Since, Malaysian economic market start going bad, we need to focus on more factors in this issue to measure the effectiveness of Malaysian monetary policy. 2017 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/32946/2/32946.pdf Determinants of lending behaviour in Malaysia / Nur Atikah Mohd Lani. (2017) [Student Project] (Unpublished)
spellingShingle Interest rates. Interest tables
Monetary policy
Mohd Lani, Nur Atikah
Determinants of lending behaviour in Malaysia / Nur Atikah Mohd Lani
title Determinants of lending behaviour in Malaysia / Nur Atikah Mohd Lani
title_full Determinants of lending behaviour in Malaysia / Nur Atikah Mohd Lani
title_fullStr Determinants of lending behaviour in Malaysia / Nur Atikah Mohd Lani
title_full_unstemmed Determinants of lending behaviour in Malaysia / Nur Atikah Mohd Lani
title_short Determinants of lending behaviour in Malaysia / Nur Atikah Mohd Lani
title_sort determinants of lending behaviour in malaysia nur atikah mohd lani
topic Interest rates. Interest tables
Monetary policy
url https://ir.uitm.edu.my/id/eprint/32946/2/32946.pdf
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