Repayment behaviour of development financial institution borrowers / Chong Fen Nee, Rosita Haji Suhaimi and Nurhani Aba Ibrahim

This study investigates the repayment pattern of Development Financial Institutions borrowers in Sabah and Sarawak. Additionally, factors such as demographic profile, loan characteristics and borrower-lender distance are examined to determine their relationships with repayment performance. A total...

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Main Authors: Chong, Feng Nee, Suhaimi, Rosita, Aba Ibrahim, Nurhani
Format: Research Reports
Language:English
Published: UITM Sarawak,Kampus Samarahan 2011
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/25398/
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author Chong, Feng Nee
Suhaimi, Rosita
Aba Ibrahim, Nurhani
author_facet Chong, Feng Nee
Suhaimi, Rosita
Aba Ibrahim, Nurhani
author_sort Chong, Feng Nee
building UiTM Institutional Repository
collection Online Access
description This study investigates the repayment pattern of Development Financial Institutions borrowers in Sabah and Sarawak. Additionally, factors such as demographic profile, loan characteristics and borrower-lender distance are examined to determine their relationships with repayment performance. A total of two hundred and forty-two queationnaires were collected during the study period and used for the analysis. Findings showed that 43% of the respondents default their credit obligations while the remaining take between one to six months to settle their monthly arrears. When the cross-tabulation analysis was used to identify the common demographic characteristics of the defaulters, it was found that most of the defaults are male, attain a lower level of education, have a higher total number of dependents and self employed. An empirical analysis on the impact of the factors affecting repayment performance of Development Financial Institutions using logistic regression analysis suggested that Development Financial Institutions should manage the borrower-lender distance actively and impose a collateral requirement in order to mitigate default peoblems.
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institution Universiti Teknologi MARA
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language English
last_indexed 2025-11-14T22:23:53Z
publishDate 2011
publisher UITM Sarawak,Kampus Samarahan
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spelling uitm-253982020-03-19T07:14:16Z https://ir.uitm.edu.my/id/eprint/25398/ Repayment behaviour of development financial institution borrowers / Chong Fen Nee, Rosita Haji Suhaimi and Nurhani Aba Ibrahim Chong, Feng Nee Suhaimi, Rosita Aba Ibrahim, Nurhani Business Financial management. Business finance. Corporation finance This study investigates the repayment pattern of Development Financial Institutions borrowers in Sabah and Sarawak. Additionally, factors such as demographic profile, loan characteristics and borrower-lender distance are examined to determine their relationships with repayment performance. A total of two hundred and forty-two queationnaires were collected during the study period and used for the analysis. Findings showed that 43% of the respondents default their credit obligations while the remaining take between one to six months to settle their monthly arrears. When the cross-tabulation analysis was used to identify the common demographic characteristics of the defaulters, it was found that most of the defaults are male, attain a lower level of education, have a higher total number of dependents and self employed. An empirical analysis on the impact of the factors affecting repayment performance of Development Financial Institutions using logistic regression analysis suggested that Development Financial Institutions should manage the borrower-lender distance actively and impose a collateral requirement in order to mitigate default peoblems. UITM Sarawak,Kampus Samarahan 2011 Research Reports NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/25398/1/25398.PDF Chong, Feng Nee and Suhaimi, Rosita and Aba Ibrahim, Nurhani (2011) Repayment behaviour of development financial institution borrowers / Chong Fen Nee, Rosita Haji Suhaimi and Nurhani Aba Ibrahim. (2011) [Research Reports] (Unpublished)
spellingShingle Business
Financial management. Business finance. Corporation finance
Chong, Feng Nee
Suhaimi, Rosita
Aba Ibrahim, Nurhani
Repayment behaviour of development financial institution borrowers / Chong Fen Nee, Rosita Haji Suhaimi and Nurhani Aba Ibrahim
title Repayment behaviour of development financial institution borrowers / Chong Fen Nee, Rosita Haji Suhaimi and Nurhani Aba Ibrahim
title_full Repayment behaviour of development financial institution borrowers / Chong Fen Nee, Rosita Haji Suhaimi and Nurhani Aba Ibrahim
title_fullStr Repayment behaviour of development financial institution borrowers / Chong Fen Nee, Rosita Haji Suhaimi and Nurhani Aba Ibrahim
title_full_unstemmed Repayment behaviour of development financial institution borrowers / Chong Fen Nee, Rosita Haji Suhaimi and Nurhani Aba Ibrahim
title_short Repayment behaviour of development financial institution borrowers / Chong Fen Nee, Rosita Haji Suhaimi and Nurhani Aba Ibrahim
title_sort repayment behaviour of development financial institution borrowers / chong fen nee, rosita haji suhaimi and nurhani aba ibrahim
topic Business
Financial management. Business finance. Corporation finance
url https://ir.uitm.edu.my/id/eprint/25398/