Specialization and other determinants of non-commercial bank financial institutions’ profitability Empirical evidence from Malaysia
1. Specialization and other determinants of non-commercial bank financial institutions’ profitability Empirical evidence from Malaysia Authors : Fadzlan Sufian, Suarddy Parman. Prepared by: Boughezala Hamad Hocine 802042 & Akhmedov Davran 803837 Prepared for: Prof. Shahriza Bt Osman Journal: Studies in Economics and Finance Vol. 26 No.2, 2009 pp. 113-128
2. Contents Data and methodology Introduction Overview of the Malaysia financial system 1 2 3 4 5 Results Empirical Finding 6 Conclusion 04/04/10 UUM 2010
3. Introduction Purpose of the study : to provide empirical evidence on the factors that influence non-commercial bank financial institutions (NCBFIs) profitability in a developing economy, and attempt to investigate the performance of financial institutions in Malaysia are relatively scarce . Keywords: banks, financial institution, profit, Malaysia 04/04/10 UUM 2010
4. Overview of the Malaysian financial system Banking system (the largest component, accounting for approximately 70% of total assets of financial system) Non-bank financial intermediaries Malaysian financial system 04/04/10 UUM 2010
5. Banking system Commercial bank Finance companies Merchant banks They are the largest and most significant providers of funds in the banking system; The second largest group of deposit taking institutions in Malaysia; The third largest , it’s merged in Malaysia banking scene in 1970. Commercial banks Finance companies Merchant banks The banking system can be divided into three main groups 04/04/10 UUM 2010
9. Assets of the Banking system: 1960-2004 04/04/10 UUM 2010
10. M.B F.C C.B RM 42,691 million (0.17% of GDP) RM 68421.1 million (0.27% of GDP) RM 761,254.8 million (3.05% of GDP) F.C+ M.B = 22,8% of the banking system 04/04/10 UUM 2010 Assets of the Banking system: 2004.