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Evaluation of capital adequacy ratio on Malaysian banking efficiency

Nur Diyana, Yusof (2017) Evaluation of capital adequacy ratio on Malaysian banking efficiency. Masters thesis, Universiti Utara Malaysia.

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Abstract

Capital adequacy has been constantly growing in the banking sector in Malaysia and is a key factor in determining the continuity of the commercial and islamic banks in Malaysia. Capital adequacy is a cushion for banking institution for ensure they are survived in financial crisis. However capital adequacy is affected by credit risk, market risk and operational risk. The purpose of this study is to evaluate the capital adequacy ratio on Malaysian banking efficiency from year 2009 to 2016. The variables that would like to test are on between total risk weighted assets for credit risk, total risk weighted assets for market risk and total risk weighted assets for operational risk. A research framework and a hypothesis are developed. The hypothesis of this study is tested using regression analysis. It is to examine the fitness and the strength of the model. In this research, 8 serial data comprised of 10 local banks where 8 of them are commercial banks and 2 of them are Islamic banks. From three of independent variables in this research, only two variables gives an impact towards capital adequacy ratio. In a nutshell, this study offered insights to understanding the evaluation of capital adequacy ratio on Malaysian banking efficiency for mitigate any difficulties during financial crisis.

Item Type: Thesis (Masters)
Uncontrolled Keywords: Capital adequacy ratio, banking efficiency, credit risk, market risk, operational risk
Subjects: H Social Sciences > HG Finance
Divisions: Othman Yeop Abdullah Graduate School of Business
Depositing User: Mr. Badrulsaman Hamid
Date Deposited: 10 Mar 2019 00:34
Last Modified: 10 Mar 2019 00:34
URI: http://etd.uum.edu.my/id/eprint/7086

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