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Sound credit underwriting: Does it undermine growth?


Raja Ramalingam, Muruga (2009) Sound credit underwriting: Does it undermine growth? Discussion Paper. Universiti Utara Malaysia. (Unpublished)

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Abstract

This paper explores the relationship between credit underwriting standards and loan growth for the Malaysian banking industry and selected banks using correlation and trend analysis. The paper also attempted to identify whether there were any differences between local banks and foreign banks using the Paired-Samples T-Test. It was found that sound credit underwriting practice generally undermines loan growth.However banks employing superior loan technology are able to achieve high loan growth without compromising credit standards with the use of proper loan technology.Although local banks appear to outperform the foreign banks both in terms of loan growth and NPL, further studies involving a larger pool of local and foreign banks are needed before generalisation could be made.

Item Type: Monograph (Discussion Paper)
Additional Information: Master of Science (Banking) - (WBB 6013: Seminar in Banking)
Uncontrolled Keywords: credit underwriting; bank lending; lending standards, loan losses
Subjects: H Social Sciences > HG Finance
Divisions: School of Economics, Finance & Banking
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 22 Feb 2011 01:49
Last Modified: 25 Apr 2016 08:25
URI: http://repo.uum.edu.my/id/eprint/2451

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