Prediction models for bank failure: ASEAN countries

The paper analyses how global financial crisis effects the performance of banks. This study further estimate the determinants of banks failure on a sample of banks in ASEAN countries namely, Indonesia, Malaysia, Singapore, Cambodia, Thailand, Philippine, Singapore, and Vietnam. We define a bank...

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Main Authors: Anggraeni, Anggraeni, Abdul Mongid, Suhartono
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/16870/
http://journalarticle.ukm.my/16870/1/jeko_54%282%29-4.pdf
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author Anggraeni, Anggraeni
Abdul Mongid,
Suhartono,
author_facet Anggraeni, Anggraeni
Abdul Mongid,
Suhartono,
author_sort Anggraeni, Anggraeni
building UKM Institutional Repository
collection Online Access
description The paper analyses how global financial crisis effects the performance of banks. This study further estimate the determinants of banks failure on a sample of banks in ASEAN countries namely, Indonesia, Malaysia, Singapore, Cambodia, Thailand, Philippine, Singapore, and Vietnam. We define a bank as having failed when its profitability, equity, and loan quality are below a minimum standard. Besides bank-specific variables (microeconomic variables), some macroeconomic variables have been considered in this study. The findings reveal that during global finance crisis, the performance of the banks is at its weakest before its significant recovery. The findings show that the banking failure is positively linked to cost inefficiency, debt to equity ratio, an inflation rate, but negatively related to profitability. The findings suggest that cost inefficiency, can serve as a foundation for corrective action to be considered by banking authorities in the future.
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spelling oai:generic.eprints.org:168702021-06-24T16:19:24Z http://journalarticle.ukm.my/16870/ Prediction models for bank failure: ASEAN countries Anggraeni, Anggraeni Abdul Mongid, Suhartono, The paper analyses how global financial crisis effects the performance of banks. This study further estimate the determinants of banks failure on a sample of banks in ASEAN countries namely, Indonesia, Malaysia, Singapore, Cambodia, Thailand, Philippine, Singapore, and Vietnam. We define a bank as having failed when its profitability, equity, and loan quality are below a minimum standard. Besides bank-specific variables (microeconomic variables), some macroeconomic variables have been considered in this study. The findings reveal that during global finance crisis, the performance of the banks is at its weakest before its significant recovery. The findings show that the banking failure is positively linked to cost inefficiency, debt to equity ratio, an inflation rate, but negatively related to profitability. The findings suggest that cost inefficiency, can serve as a foundation for corrective action to be considered by banking authorities in the future. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/16870/1/jeko_54%282%29-4.pdf Anggraeni, Anggraeni and Abdul Mongid, and Suhartono, (2020) Prediction models for bank failure: ASEAN countries. Jurnal Ekonomi Malaysia, 54 (2). pp. 41-51. ISSN 0127-1962 https://www.ukm.my/fep/jem/content/2020-2.html
spellingShingle Anggraeni, Anggraeni
Abdul Mongid,
Suhartono,
Prediction models for bank failure: ASEAN countries
title Prediction models for bank failure: ASEAN countries
title_full Prediction models for bank failure: ASEAN countries
title_fullStr Prediction models for bank failure: ASEAN countries
title_full_unstemmed Prediction models for bank failure: ASEAN countries
title_short Prediction models for bank failure: ASEAN countries
title_sort prediction models for bank failure: asean countries
url http://journalarticle.ukm.my/16870/
http://journalarticle.ukm.my/16870/
http://journalarticle.ukm.my/16870/1/jeko_54%282%29-4.pdf