/jurnalpengurusan Sat, 15 Oct 2022 10:34:05 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 /jurnalpengurusan/article/basel-iii-new-liquidity-framework-and-malaysian-commercial-banks-profitability/?utm_source=rss&utm_medium=rss&utm_campaign=basel-iii-new-liquidity-framework-and-malaysian-commercial-banks-profitability Sat, 15 Oct 2022 10:34:05 +0000 /jurnalpengurusan/?post_type=article&p=6382 In the light of the 2007-2008 global financial crisis, Basel Committee on Banking Supervision proposed the Net Stable Funding Ratio (NSFR), a new liquidity framework under Basel III. Its aim is to promote sustainable funding structures of the financial institutions. This current paper attempts to analyse NSFR impact on Malaysian commercial banks profitability. Using panel data of eight domestic Malaysian commercial banks for the period 2005-2011, the results suggest there is a convincing evidence that this new liquidity ratio is an important factor in affecting the sample banks’ profitability. The ability of banks in managing the stability of their funding sources as well as liquidity of its asset is an advantage to them and is translated into higher profitability. In addition, this study also confirms finding of previous studies that relates bank-specific determinants and profitability.

]]> /jurnalpengurusan/article/impak-kecekapan-kos-terhadap-risiko-kecairan-dalam-institusi-perbankan-di-malaysia/?utm_source=rss&utm_medium=rss&utm_campaign=impak-kecekapan-kos-terhadap-risiko-kecairan-dalam-institusi-perbankan-di-malaysia Tue, 11 Oct 2022 07:41:55 +0000 /jurnalpengurusan/?post_type=article&p=5402 This study analyzes the relationship between bank efficiency and liquidity risks of 16 Islamic banks and 27 conventional banks in Malaysia for the period covering year 1994-2014. Bank efficiency is based on cost efficiency, while liquidity risk is measured based on the guidelines of Basel III using Liquidity Coverage Ratio (LCR), which is short term (30 days) and Net Stable Funding Ratio (NSFR), which is long term (one year) in nature. This analysis involves two phases: 1) the cost efficiency scores is estimated using Stochastic Frontier Analysis (SFA) and 2) the relationship between the estimated cost efficiency and liquidity risk is tested using static panel regression method. The results show that cost efficiency of both banking systems have no significant relationship with LCR, but significant negative relationships with NSFR for both Islamic and conventional banks. This means that the higher the cost inefficiency, the lower is the liquidity, and the higher the liquidity risk in long term. In short, cost saving can reduce bank liquidity risk in long-term. Hence, bank cost efficiency must be taken into account by policy-makers in formulating liquidity risk management to ensure sustainability of the banking system in Malaysia.

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