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Key risk determinant of listed deposit-taking institutions in Malaysia

Ahmad, Nor Hayati and Arif, Mohamed (2004) Key risk determinant of listed deposit-taking institutions in Malaysia. Malaysian Management Journal, 8 (1). pp. 69-81. ISSN 0128-6226

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Risk management is a critical function in banking operations in the wake of several banking crises. However; we find few studies on risk management and a lack of empirical investigation on factors affecting the risk of Malaysian banks. These gaps have motivated us to identify the main factors associated with the risk of locally listed deposit-taking institutions. The findings show that three factors were signlficantly associated with unsystematic risk, while the systematic risk and the total risk of these deposit-taking institutions were significantly affected by four main factors. These four factors namely non-performing loans, cost of funds, loan to deposit ratio and inter-bank offered rate however; were found to have a more profound effect on the total risk than on the systematic risk or the unsystematic risk of Malaysian deposit-taking institutions.

Item Type: Article
Uncontrolled Keywords: bank risk, problem loans, deposit-taking institutions
Subjects: H Social Sciences > HG Finance
Divisions: College of Business
Depositing User: Prof. Dr. Nor Hayati Ahmad
Date Deposited: 19 Jul 2010 08:15
Last Modified: 25 Jun 2015 07:04

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