Factors affecting net interest margin of ASEAN banks
As one of the key financial intermediaries, banks play a significant role as providers of credits and liquidity to the Asean economies. Banks are able to execute this economic role efficiently provided they are profitable. The issue is: What affects banks' net interest margins in this region?...
| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
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2004
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| Online Access: | https://repo.uum.edu.my/id/eprint/3562/1/N2.pdf |
| _version_ | 1825740170083696640 |
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| author | Ahmad, Nor Hayati Md Nayan, Najat Ariff, Mohd |
| author_facet | Ahmad, Nor Hayati Md Nayan, Najat Ariff, Mohd |
| author_sort | Ahmad, Nor Hayati |
| collection | UUM |
| description | As one of the key financial intermediaries, banks play a significant role as providers of credits and liquidity to the Asean economies. Banks are able to execute this economic
role efficiently provided they are profitable. The issue is: What affects banks' net interest margins in this region? This paper investigates six factors affecting net interest margin (NIM) of conimercial banlts in Malaysia, Thailand, Japan, Korea, Australia and New Zealand over 1998 to 2002. Although the banks are operating in different economies: the investigation reveals that loan to deposit ratio significantly affects the banks' NIM in all six Asean countries. Operating expenses to total assets and leverage emerge as the next significant factors affecting NIM of banks in most of the Asean countries. The findings also show that adjusted R-squared for Australian, Thailand and New Zealand banks falls within 38-42 percent range while R-squared for Malaysia, Korea and Japan falls within 15-37 percent range. The implications of the results are discussed in the paper. |
| first_indexed | 2024-07-04T05:22:18Z |
| format | Conference or Workshop Item |
| id | uum-3562 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:22:18Z |
| publishDate | 2004 |
| record_format | eprints |
| spelling | uum-35622011-11-17T06:26:19Z https://repo.uum.edu.my/id/eprint/3562/ Factors affecting net interest margin of ASEAN banks Ahmad, Nor Hayati Md Nayan, Najat Ariff, Mohd HG Finance As one of the key financial intermediaries, banks play a significant role as providers of credits and liquidity to the Asean economies. Banks are able to execute this economic role efficiently provided they are profitable. The issue is: What affects banks' net interest margins in this region? This paper investigates six factors affecting net interest margin (NIM) of conimercial banlts in Malaysia, Thailand, Japan, Korea, Australia and New Zealand over 1998 to 2002. Although the banks are operating in different economies: the investigation reveals that loan to deposit ratio significantly affects the banks' NIM in all six Asean countries. Operating expenses to total assets and leverage emerge as the next significant factors affecting NIM of banks in most of the Asean countries. The findings also show that adjusted R-squared for Australian, Thailand and New Zealand banks falls within 38-42 percent range while R-squared for Malaysia, Korea and Japan falls within 15-37 percent range. The implications of the results are discussed in the paper. 2004 Conference or Workshop Item NonPeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/3562/1/N2.pdf Ahmad, Nor Hayati and Md Nayan, Najat and Ariff, Mohd (2004) Factors affecting net interest margin of ASEAN banks. In: Asia Pacific Economics and Business Conference 2004, 7-9th October 2004, City Bayview Hotel, Penang, Malaysia. (Unpublished) http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000234396 |
| spellingShingle | HG Finance Ahmad, Nor Hayati Md Nayan, Najat Ariff, Mohd Factors affecting net interest margin of ASEAN banks |
| title | Factors affecting net interest margin of ASEAN banks |
| title_full | Factors affecting net interest margin of ASEAN banks |
| title_fullStr | Factors affecting net interest margin of ASEAN banks |
| title_full_unstemmed | Factors affecting net interest margin of ASEAN banks |
| title_short | Factors affecting net interest margin of ASEAN banks |
| title_sort | factors affecting net interest margin of asean banks |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/3562/1/N2.pdf |
| work_keys_str_mv | AT ahmadnorhayati factorsaffectingnetinterestmarginofaseanbanks AT mdnayannajat factorsaffectingnetinterestmarginofaseanbanks AT ariffmohd factorsaffectingnetinterestmarginofaseanbanks |