Impacts of monetary policy shocks on the domestic and foreign banks in Malaysia
This study investigates the impact of monetary shocks on bank loans extended by local banks and foreign banks in Malaysia over the period from January 1991 to December 2006. It adopts the impulse response functions and the variance decomposition analysis to study the responses of lending by these ba...
| Main Authors: | , |
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| Format: | Book Chapter |
| Language: | English |
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IIUM Press
2009
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/7069/ http://irep.iium.edu.my/7069/1/Impacts_of_Monetary_Policy_Shocks_on_the_Domestic_and_Foreign_Banks_in_Malaysia.pdf |
| _version_ | 1848776782004617216 |
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| author | Kassim, Salina Abdul Manap, Turkhan Ali |
| author_facet | Kassim, Salina Abdul Manap, Turkhan Ali |
| author_sort | Kassim, Salina |
| building | IIUM Repository |
| collection | Online Access |
| description | This study investigates the impact of monetary shocks on bank loans extended by local banks and foreign banks in Malaysia over the period from January 1991 to December 2006. It adopts the impulse response functions and the variance decomposition analysis to study the responses of lending by these banks to monetary policy shocks. The study finds that foreign banks do not react negatively to monetary policy shocks and do not abandon the domestic market in times of economic distress. The different responses of the balance sheet items of these banks have several important implications, particularly on monetary policy implementation and risk management practices of the banks. |
| first_indexed | 2025-11-14T14:35:33Z |
| format | Book Chapter |
| id | iium-7069 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:35:33Z |
| publishDate | 2009 |
| publisher | IIUM Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-70692011-11-22T07:58:21Z http://irep.iium.edu.my/7069/ Impacts of monetary policy shocks on the domestic and foreign banks in Malaysia Kassim, Salina Abdul Manap, Turkhan Ali HG1501 Banking This study investigates the impact of monetary shocks on bank loans extended by local banks and foreign banks in Malaysia over the period from January 1991 to December 2006. It adopts the impulse response functions and the variance decomposition analysis to study the responses of lending by these banks to monetary policy shocks. The study finds that foreign banks do not react negatively to monetary policy shocks and do not abandon the domestic market in times of economic distress. The different responses of the balance sheet items of these banks have several important implications, particularly on monetary policy implementation and risk management practices of the banks. IIUM Press 2009 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/7069/1/Impacts_of_Monetary_Policy_Shocks_on_the_Domestic_and_Foreign_Banks_in_Malaysia.pdf Kassim, Salina and Abdul Manap, Turkhan Ali (2009) Impacts of monetary policy shocks on the domestic and foreign banks in Malaysia. In: Proceedings of the Seminar on research Findings 2008. IIUM Press, Kuala Lumpur, pp. 289-304. ISBN 9789833855780 http://rms.research.iium.edu.my/bookstore/Products/115-wwwgooglecom.aspx |
| spellingShingle | HG1501 Banking Kassim, Salina Abdul Manap, Turkhan Ali Impacts of monetary policy shocks on the domestic and foreign banks in Malaysia |
| title | Impacts of monetary policy shocks on the domestic and foreign banks in Malaysia |
| title_full | Impacts of monetary policy shocks on the domestic and foreign banks in Malaysia |
| title_fullStr | Impacts of monetary policy shocks on the domestic and foreign banks in Malaysia |
| title_full_unstemmed | Impacts of monetary policy shocks on the domestic and foreign banks in Malaysia |
| title_short | Impacts of monetary policy shocks on the domestic and foreign banks in Malaysia |
| title_sort | impacts of monetary policy shocks on the domestic and foreign banks in malaysia |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/7069/ http://irep.iium.edu.my/7069/ http://irep.iium.edu.my/7069/1/Impacts_of_Monetary_Policy_Shocks_on_the_Domestic_and_Foreign_Banks_in_Malaysia.pdf |