The determinants of profitability of commercial banks in Malaysia / Nur Zaliha Mohd Yamin

This paper studied the determinant of profitability of the commercial banks in Malaysia variables bankspecific factors on selected bank profitability in Malaysia during the period 2011-2018. Panel data which consist of 11 selected banks in Malaysia which is local bank and foreign bank been used in...

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Bibliographic Details
Main Author: Mohd Yamin, Nur Zaliha
Format: Student Project
Language:English
Published: 2020
Subjects:
Online Access:http://ir.uitm.edu.my/id/eprint/43401/1/43401.pdf
http://ir.uitm.edu.my/id/eprint/43401/
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Institution: Universiti Teknologi Mara
Language: English
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Summary:This paper studied the determinant of profitability of the commercial banks in Malaysia variables bankspecific factors on selected bank profitability in Malaysia during the period 2011-2018. Panel data which consist of 11 selected banks in Malaysia which is local bank and foreign bank been used in this study. Bank return on assets (ROA) has been used as an instrument to measure bank profitability. Bank specific variable that used in this study included capital adequancy (CA), Bank Size (BS) and Liquidity (LIQ). In order to study about this topic, the researcher obtained secondary data from World Bank, Mendeley and annual report of each bank. Fixed effect model was chosen to examine the effect of bank specific factors toward bank profitability. The researchers found that the independents variables have positive relationship with bank profitability except bank size and capital adequancy..Other than this,liquidity,capital adequancy,bank size is insignificant to affect the bank profitability while this factor are critical components in influencing profitability of the commercial bank in Malaysia.