Developments in the performance of the Malaysian banking sector: opportunity cost of regulatory compliance
By using bank-level data, this paper examines how regulation and supervision affects the profitability of the Malaysian banking sector over the period 1992–2003. The empirical findings suggest that Malaysian banks with higher liquidity levels, credit risk and overhead expenses exhibit lower profitab...
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| Format: | Article |
| Language: | English |
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Inderscience Publishers
2010
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| Online Access: | http://irep.iium.edu.my/5270/ http://irep.iium.edu.my/5270/1/f671024583111129.pdf |
| _version_ | 1848776471939645440 |
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| author | Sufian, Fadzlan |
| author_facet | Sufian, Fadzlan |
| author_sort | Sufian, Fadzlan |
| building | IIUM Repository |
| collection | Online Access |
| description | By using bank-level data, this paper examines how regulation and supervision affects the profitability of the Malaysian banking sector over the period 1992–2003. The empirical findings suggest that Malaysian banks with higher liquidity levels, credit risk and overhead expenses exhibit lower profitability level. On the other hand, banks with a higher proportion of income from non-interest sources and better-capitalised exhibit higher profitability level. The results suggest that economic growth and inflation has positive impact on the profitability of the Malaysian banking sector. The empirical findings suggest that the impact of regulation and supervision is negatively related to bank profitability. |
| first_indexed | 2025-11-14T14:30:37Z |
| format | Article |
| id | iium-5270 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:30:37Z |
| publishDate | 2010 |
| publisher | Inderscience Publishers |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-52702011-12-19T06:27:49Z http://irep.iium.edu.my/5270/ Developments in the performance of the Malaysian banking sector: opportunity cost of regulatory compliance Sufian, Fadzlan HG1501 Banking By using bank-level data, this paper examines how regulation and supervision affects the profitability of the Malaysian banking sector over the period 1992–2003. The empirical findings suggest that Malaysian banks with higher liquidity levels, credit risk and overhead expenses exhibit lower profitability level. On the other hand, banks with a higher proportion of income from non-interest sources and better-capitalised exhibit higher profitability level. The results suggest that economic growth and inflation has positive impact on the profitability of the Malaysian banking sector. The empirical findings suggest that the impact of regulation and supervision is negatively related to bank profitability. Inderscience Publishers 2010 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5270/1/f671024583111129.pdf Sufian, Fadzlan (2010) Developments in the performance of the Malaysian banking sector: opportunity cost of regulatory compliance. International Journal of Business Competition and Growth, 1 (1). pp. 85-103. ISSN 2042-3853 ; 2042-3845 |
| spellingShingle | HG1501 Banking Sufian, Fadzlan Developments in the performance of the Malaysian banking sector: opportunity cost of regulatory compliance |
| title | Developments in the performance of the Malaysian banking sector: opportunity cost of regulatory compliance |
| title_full | Developments in the performance of the Malaysian banking sector: opportunity cost of regulatory compliance |
| title_fullStr | Developments in the performance of the Malaysian banking sector: opportunity cost of regulatory compliance |
| title_full_unstemmed | Developments in the performance of the Malaysian banking sector: opportunity cost of regulatory compliance |
| title_short | Developments in the performance of the Malaysian banking sector: opportunity cost of regulatory compliance |
| title_sort | developments in the performance of the malaysian banking sector: opportunity cost of regulatory compliance |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/5270/ http://irep.iium.edu.my/5270/1/f671024583111129.pdf |