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Performance of Malaysian local banks: Before & after merger


Lum, Chuen Aun (2009) Performance of Malaysian local banks: Before & after merger. Discussion Paper. Universiti Utara Malaysia. (Unpublished)

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Abstract

Malaysia is experiencing another round of crisis brought about by the global credit crunch. With the impending weaker economy, the resiliency of Malaysian banking sector would again be tested. This paper will gain insights into the performance of Malaysian local banks after the consolidation of banking sector in year 2000 which was expedited by the Asian Financial crisis.The objective of this paper is to find out whether the local banks have achieved performance efficiency during the post merger period namely in the areas of profitability, cost savings and shareholders’ wealth.Comparison and analysis of ratios are used to compare the performance of local banks during the pre-merger period (1999-2000) and post-merger period (2006-2007).Banks’ mergers in Malaysia do not necessary improve their profitability as measured by return on asset (ROA). Cost savings as measured by expenses to revenue ratio indicated mixed result whereas almost all the banks had shown improvement in expenses to asset ratio. Most of the banks had improved in shareholders wealth.

Item Type: Monograph (Discussion Paper)
Additional Information: Master of Science (Banking) - (WBB 6013: Seminar in Banking)
Uncontrolled Keywords: Banks; Mergers & Acquisitions; Performance
Subjects: H Social Sciences > HG Finance
Divisions: School of Economics, Finance & Banking
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 22 Feb 2011 02:01
Last Modified: 25 Apr 2016 07:23
URI: http://repo.uum.edu.my/id/eprint/2460

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