Performance analysis of selected Malaysian banks.

• Main Authors: Goh, Ai Tin., Quek, Ivy., Tan, Joo Sin.
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/51216
• Institution: Nanyang Technological University

This report aims to analyse the performance of tier 2 banks in Malaysia over the past three years (1992 to 1994) and to recommend high performing tier 2 banks to be promoted to tier 1 status. Performance of tier 1 banks had been used as a guide in our recommendation. The two-tier system was implemented by Bank Negara Malaysia in 1994 to create a more liberalised and self-regulatory banking system. The intention is to make the Malaysian banking industry more internationally competitive. The requirements that tier 1 banks are obliged to adhere to are presented in the report. In addition, implications of the two-tier system on tier 2 banks are also shown. The report described in detail the structure, performance and challenges faced by the banking sector. Furthermore, background information relating to the history, recent developments and operations of the sampled Malaysian banks were gathered to better evaluate the individual bank’s performance. The CAMEL framework and an additional indicator - market share, were used in our analysis. A literature review of the CAMELS framework is presented. Last but not least, methods of analysing the data are elaborated. Though the limitations of the research may distort the results, it is hoped that this project will serve as a guideline for future research on Malaysian banks’ performance.