Influence of external forces on bank recapitalization: an evidence of banks in IMT-GT economic region

Purpose: This paper provides evidence of the influence of selected external forces during the banking crises on the recapitalized performance of banks in Indonesia, Malaysia and Thailand in the IMT-GT economic region.Methodology: The study covers a period of 19 years from 1997 to 2015 across 45 com...

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Main Authors: Ernovianti, Etri, Ahmad, Nor Hayati
Format: Article
Language:English
Published: CSRC Publishing 2017
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/25967/1/JAFEE%203%202%202017%20123%20131.pdf
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author Ernovianti, Etri
Ahmad, Nor Hayati
author_facet Ernovianti, Etri
Ahmad, Nor Hayati
author_sort Ernovianti, Etri
collection UUM
description Purpose: This paper provides evidence of the influence of selected external forces during the banking crises on the recapitalized performance of banks in Indonesia, Malaysia and Thailand in the IMT-GT economic region.Methodology: The study covers a period of 19 years from 1997 to 2015 across 45 commercial banks.The data was collected from the World Bank database and the global economy website.Results: Although the strategy of capital injection used to strengthen the capital position of the banks proved positively significant, the results showed GDP, Inflation and Political Stability Index had different impact on the recapitalized banks’ performance in these three countries.The overall results appears to indicate that external forces have higher impact on Indonesia banks compared to Thailand and Malaysian banks over the study period. Implications: This study recommend recapitalize banks to efficiently utilize their enlarged capital base to expand their lending activities and investment to real sectors in order to generate higher economic growth for the IMT-GT region.
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spelling uum-259672019-04-22T00:35:27Z https://repo.uum.edu.my/id/eprint/25967/ Influence of external forces on bank recapitalization: an evidence of banks in IMT-GT economic region Ernovianti, Etri Ahmad, Nor Hayati HG Finance Purpose: This paper provides evidence of the influence of selected external forces during the banking crises on the recapitalized performance of banks in Indonesia, Malaysia and Thailand in the IMT-GT economic region.Methodology: The study covers a period of 19 years from 1997 to 2015 across 45 commercial banks.The data was collected from the World Bank database and the global economy website.Results: Although the strategy of capital injection used to strengthen the capital position of the banks proved positively significant, the results showed GDP, Inflation and Political Stability Index had different impact on the recapitalized banks’ performance in these three countries.The overall results appears to indicate that external forces have higher impact on Indonesia banks compared to Thailand and Malaysian banks over the study period. Implications: This study recommend recapitalize banks to efficiently utilize their enlarged capital base to expand their lending activities and investment to real sectors in order to generate higher economic growth for the IMT-GT region. CSRC Publishing 2017 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25967/1/JAFEE%203%202%202017%20123%20131.pdf Ernovianti, Etri and Ahmad, Nor Hayati (2017) Influence of external forces on bank recapitalization: an evidence of banks in IMT-GT economic region. Journal of Accounting and Finance in Emerging Economies, 3 (2). pp. 123-131. ISSN 2519-0318 https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/147
spellingShingle HG Finance
Ernovianti, Etri
Ahmad, Nor Hayati
Influence of external forces on bank recapitalization: an evidence of banks in IMT-GT economic region
title Influence of external forces on bank recapitalization: an evidence of banks in IMT-GT economic region
title_full Influence of external forces on bank recapitalization: an evidence of banks in IMT-GT economic region
title_fullStr Influence of external forces on bank recapitalization: an evidence of banks in IMT-GT economic region
title_full_unstemmed Influence of external forces on bank recapitalization: an evidence of banks in IMT-GT economic region
title_short Influence of external forces on bank recapitalization: an evidence of banks in IMT-GT economic region
title_sort influence of external forces on bank recapitalization an evidence of banks in imt gt economic region
topic HG Finance
url https://repo.uum.edu.my/id/eprint/25967/1/JAFEE%203%202%202017%20123%20131.pdf
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