Is ASEAN Ready for Banking Integration? Evidence from Interest Rate Convergence
Convergence in prices or returns of assets with similar characteristics indicates that the financial market is integrated with regional markets. This paper is the first that test of the movements of interest rates in ASEAN banking sector for the period 1990 - 2012. The empirical analysis is based...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universitas Indonesia
2016
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| Online Access: | http://eprints.usm.my/37080/ http://eprints.usm.my/37080/1/%28Is_ASEAN_Ready_for_Banking%29_5712-12577-1-PB.pdf |
| _version_ | 1848878091716263936 |
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| author | Sahul Hamid, Fazelina Hooi , Hooi Lean |
| author_facet | Sahul Hamid, Fazelina Hooi , Hooi Lean |
| author_sort | Sahul Hamid, Fazelina |
| building | USM Institutional Repository |
| collection | Online Access |
| description | Convergence in prices or returns of assets with similar characteristics indicates that the financial
market is integrated with regional markets. This paper is the first that test of the movements of
interest rates in ASEAN banking sector for the period 1990 - 2012. The empirical analysis is based
on a yearly panel of commercial bank interest rate data from 5 ASEAN countries, namely, Indonesia,
Malaysia, Philippines, Singapore and Thailand. We assessed the degree and speed of interest rate
convergence using beta and sigma convergence method. The findings show that the difference and
the dispersion in the interbank rates have reduced since the Asian financial crisis and this trend has
become stronger after the Global financial crisis. The findings of this study confirm that interest rates
in the ASEAN banking sector are c |
| first_indexed | 2025-11-15T17:25:50Z |
| format | Article |
| id | usm-37080 |
| institution | Universiti Sains Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T17:25:50Z |
| publishDate | 2016 |
| publisher | Universitas Indonesia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | usm-370802017-10-12T02:18:28Z http://eprints.usm.my/37080/ Is ASEAN Ready for Banking Integration? Evidence from Interest Rate Convergence Sahul Hamid, Fazelina Hooi , Hooi Lean H1-99 Social sciences (General) LC5800-5808 Distance education. Convergence in prices or returns of assets with similar characteristics indicates that the financial market is integrated with regional markets. This paper is the first that test of the movements of interest rates in ASEAN banking sector for the period 1990 - 2012. The empirical analysis is based on a yearly panel of commercial bank interest rate data from 5 ASEAN countries, namely, Indonesia, Malaysia, Philippines, Singapore and Thailand. We assessed the degree and speed of interest rate convergence using beta and sigma convergence method. The findings show that the difference and the dispersion in the interbank rates have reduced since the Asian financial crisis and this trend has become stronger after the Global financial crisis. The findings of this study confirm that interest rates in the ASEAN banking sector are c Universitas Indonesia 2016-07 Article PeerReviewed application/pdf en http://eprints.usm.my/37080/1/%28Is_ASEAN_Ready_for_Banking%29_5712-12577-1-PB.pdf Sahul Hamid, Fazelina and Hooi , Hooi Lean (2016) Is ASEAN Ready for Banking Integration? Evidence from Interest Rate Convergence. Indonesian Capital Market Review, 8 (2). pp. 72-82. ISSN 2356-3818 http://journal.ui.ac.id/index.php/icmr/article/view/5712/pdf |
| spellingShingle | H1-99 Social sciences (General) LC5800-5808 Distance education. Sahul Hamid, Fazelina Hooi , Hooi Lean Is ASEAN Ready for Banking Integration? Evidence from Interest Rate Convergence |
| title | Is ASEAN Ready for Banking Integration? Evidence from Interest Rate Convergence |
| title_full | Is ASEAN Ready for Banking Integration? Evidence from Interest Rate Convergence |
| title_fullStr | Is ASEAN Ready for Banking Integration? Evidence from Interest Rate Convergence |
| title_full_unstemmed | Is ASEAN Ready for Banking Integration? Evidence from Interest Rate Convergence |
| title_short | Is ASEAN Ready for Banking Integration? Evidence from Interest Rate Convergence |
| title_sort | is asean ready for banking integration? evidence from interest rate convergence |
| topic | H1-99 Social sciences (General) LC5800-5808 Distance education. |
| url | http://eprints.usm.my/37080/ http://eprints.usm.my/37080/ http://eprints.usm.my/37080/1/%28Is_ASEAN_Ready_for_Banking%29_5712-12577-1-PB.pdf |