Impact of Loan Deposit Ratio (LDR) on profitability: panel evidence from Commercial Banks in Malaysia

This paper examines the impact of Loan Deposit ratio on the profitability of Malaysian commercial banks for the period of 2009 to 2013. The study included all the eight locally owned commercial banks in Malaysia. Loan deposit ratio of the banks was the independent variable of the study. The depende...

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Main Author: Rengasamy, Dhanuskodi
Format: Conference Paper
Published: 2014
Online Access:http://hdl.handle.net/20.500.11937/77209
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author Rengasamy, Dhanuskodi
author_facet Rengasamy, Dhanuskodi
author_sort Rengasamy, Dhanuskodi
building Curtin Institutional Repository
collection Online Access
description This paper examines the impact of Loan Deposit ratio on the profitability of Malaysian commercial banks for the period of 2009 to 2013. The study included all the eight locally owned commercial banks in Malaysia. Loan deposit ratio of the banks was the independent variable of the study. The dependent variable was profitability which measures through Return on Assets (ROA). Data were obtained from the annual reports of the banks. The ratio analysis along with descriptive, correlation analysis, paired T- test and regression analysis were used in this study. The result of the study indicated that there was a positive and nonsignificant impact of LDR on ROA is five banks (Bank 1, 2, 3, 4 and 8). Further the study revealed that only one bank (Bank 5) had a negative and non-significant impact of LDR on ROA and bank 7 had positive and significant impact.
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institution Curtin University Malaysia
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publishDate 2014
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spelling curtin-20.500.11937-772092020-04-30T23:47:18Z Impact of Loan Deposit Ratio (LDR) on profitability: panel evidence from Commercial Banks in Malaysia Rengasamy, Dhanuskodi This paper examines the impact of Loan Deposit ratio on the profitability of Malaysian commercial banks for the period of 2009 to 2013. The study included all the eight locally owned commercial banks in Malaysia. Loan deposit ratio of the banks was the independent variable of the study. The dependent variable was profitability which measures through Return on Assets (ROA). Data were obtained from the annual reports of the banks. The ratio analysis along with descriptive, correlation analysis, paired T- test and regression analysis were used in this study. The result of the study indicated that there was a positive and nonsignificant impact of LDR on ROA is five banks (Bank 1, 2, 3, 4 and 8). Further the study revealed that only one bank (Bank 5) had a negative and non-significant impact of LDR on ROA and bank 7 had positive and significant impact. 2014 Conference Paper http://hdl.handle.net/20.500.11937/77209 restricted
spellingShingle Rengasamy, Dhanuskodi
Impact of Loan Deposit Ratio (LDR) on profitability: panel evidence from Commercial Banks in Malaysia
title Impact of Loan Deposit Ratio (LDR) on profitability: panel evidence from Commercial Banks in Malaysia
title_full Impact of Loan Deposit Ratio (LDR) on profitability: panel evidence from Commercial Banks in Malaysia
title_fullStr Impact of Loan Deposit Ratio (LDR) on profitability: panel evidence from Commercial Banks in Malaysia
title_full_unstemmed Impact of Loan Deposit Ratio (LDR) on profitability: panel evidence from Commercial Banks in Malaysia
title_short Impact of Loan Deposit Ratio (LDR) on profitability: panel evidence from Commercial Banks in Malaysia
title_sort impact of loan deposit ratio (ldr) on profitability: panel evidence from commercial banks in malaysia
url http://hdl.handle.net/20.500.11937/77209