Commercial Banks In Malaysia Research Articles

The Mediating Role of Self-Efficacy in the Relationship Between Salespersons’ Personal Factors and Sales Performance

A skilled salesperson can build strong relationships with clients, which fosters loyalty and repeat business. They provide valuable insights into customer preferences and competitive landscapes as well as creating value for their customers, manage customer relationships, and gather information for their firms. Hence, this paper explores how self-efficacy functions as a mediator in the correlation between improvisational behaviour, adaptive selling, and sales performance of salespersons. This study investigates the direct and indirect relationship of self-efficacy with sales performance. This study used a survey research approach using clustered random sampling. Data are collected from 315 salespersons employed by Malaysian commercial banks in Klang Valley via survey questionnaires. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyse the data. The findings indicate that self-efficacy serves as a partial mediator in the relationship between improvisational behaviour and adaptive selling with sales performance. Additionally, the results also showed that improvisational behaviour and adaptive selling are positively related to sales performance. The study concluded that personal factors of salespersons are important in determining their sales performance. Hence, for managers to have a competitive advantage in the banking sector, they need to adopt a more comprehensive understanding of what makes a good customer service provider.

Analisis Rasio 3 - Bank Komersial dengan Uji - Rls: Implikasi dan Bukti Kinerja Keuangan Bank Indonesia dan Malaysia

Abstracts This research aims to analyze the interaction between commercial banks in Indonesia and commercial banks in Malaysia on bank financial performance reports seen from the ratio aspect of bank financial reports. The method used in this research is a quantitative descriptive method by knowing the existence of the Dependent variable value on the variable (Independent) or more without making relationships and comparisons with other variables. In terms of bank value using the 3 - RLS implementation route, namely, the bank's Profitability Ratio is calculated by looking for Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), and Operating Expenses / Operating Income (BOPO). The Liquidity Ratio is calculated by finding the Quick Ratio (QR), Loan to Deposit Ratio (LDR), and Loan to Assets Ratio (LAR). The Solvency Ratio is calculated by looking for the Capital Adequacy Ratio (CAR) and Debt to Equity Ratio (DER). The results of this research evaluate and see the feasibility of 3 commercial banks in Indonesia and Malaysia against the Central Bank using the Triple - RLS method concept. As for commercial banks, there is policy integration with central bank criteria. Therefore, there needs to be discipline and commitment in improving financial performance in financial reports between Indonesian and Malaysian commercial banks.

Antecedents of Sales Performance in the Malaysian Commercial Banking Industry

Sales performance is important to every salesperson as a key performance indicator for their yearly performance. However, nearly half of them are still unable to fulfill it. Hence, this study aims to investigate the personal factors that influence the sales performance of salespersons in the banking industry. The study examines the direct relationship between improvisational behavior, adaptive selling, and self-efficacy in relation to sales performance among salespersons working in various local commercial banks in Malaysia. In these banks, despite the increasing importance of sales performance, almost half of the salespeople still fail to meet their annual performance target. A survey design with clustered random samples was utilised for this study. Questionnaires were used to collect data from salespersons in Malaysian commercial banks in the Klang Valley. The data was then analyzed using Structural Equation Modelling (SEM) with SmartPLS 4.0. In this study, three hypotheses were developed and tested through a two-stage evaluation. The results show that improvisational behavior is the most significant predictor of sales performance, followed by adaptive selling and self-efficacy. The results of the study provide managers with novel concepts to understand the factors that influence a salesperson's sales performance in the Malaysian banking sector.

A Comparative Study of Corporate Real Estate Strategies for Selected Local and Foreign Commercial Banks in Malaysia (Document Review)

Identify organizational objectives in relation to corporate property and organizational objectives in relation to the business strategy of the local and foreign commercial banks in Malaysia. The paper applies a qualitative research approach with document reviews as the main source of data collection techniques. Annual reports of around 12 documents of both local and foreign commercial banks have been reviewed Rigorous data analysis using qualitative data analysis software was employed. Findings from the related documents review revealed that most of the foreign commercial banks have a diversification strategy which is to increase the number of branches. This seeks to increase profitability through greater sales volume obtained from new products and new markets globally. While on the other hand local commercial banks have restructuring and acquisition strategies and this acquisition overcome costly barriers to entry which may make “start-ups” economically unattractive. This paper generates new knowledge about corporate strategies in relation to corporate property strategy and business strategies.

Factors Affecting Non-Performing Loans of Commercial Banks in Malaysia

With the economy’s growth, the banking industry expands, and the competitiveness intensifies with the increased number of banks. Nevertheless, its non-payment also leads to huge losses for banks and the country. One of the critical determinants of the banking sector's performance is the loans advanced to get the profit. Therefore, the loans and their repayments are used as the comparison. Specifically, banks note their repayments seriously, and those default loans are declared non-performing loans (NPLs). Thus, NPL indicates a country’s banking system’s health. This study investigates the factors influencing Non-Performing Loans (NPLs) in the commercial banking sector of Malaysia from 2012 to 2021. NPLs are considered a crucial indicator of the banking system's health and the overall economic health of a country. The study examines the relationship between bank-specific and macroeconomic factors and their impact on NPLs. The bank-specific factors analyzed are loan-to-deposit ratios, capital adequacy ratios, and bank size. In contrast, macroeconomic factors are unemployment, inflation, and gross domestic product. Data were collected from published annual reports, the World Bank website, and DataStream navigators for ten years from 2012 to 2021, involving 26 commercial banks in Malaysia. Data analysis includes Descriptive Analysis, Correlation, Multicollinearity, and Multiple Regression Analysis using SPSS version 20 software. The result indicates that loan-to-deposit ratio, bank size, unemployment rate, and gross domestic product significantly impact the NPLs in the Malaysian Commercial Banks industry. Meanwhile, the capital adequacy ratio and inflation rate did not affect the NPLs in Malaysia.

Technical Efficiency of Bank Liquidity Creation For Malaysian Commercial Banks From 2011 to 2018

Technical Efficiency of Bank Liquidity Creation For Malaysian Commercial Banks From 2011 to 2018

The Older, the Wiser? Investigating the Effect of CEO Age on the Bank Performance in Malaysia

This paper aims to investigate the impact of CEO age on commercial bank performance in Malaysia. Our sample data consists of 84 observations from commercial banks in Malaysia from 2016 to 2021. Using the Quantile Regression Method, we find that the CEO's Age positively influences the commercial bank's performance. This finding indicates the wisdom of the CEO in making decisions when they are getting older, positively affecting the commercial bank's performance. The result is consistent with the resource-based view; the CEO is the invaluable human capital providing experience in managing the bank's performance. Our findings guide practitioners in hiring a qualified CEO

Unlocking Financial Stability: Exploring Internal Factors in Malaysian Commercial Banks

Unlocking Financial Stability: Exploring Internal Factors in Malaysian Commercial Banks

The profit efficiency analysis of malaysian commercial banks: A Data Envelopment Analysis (DEA)

Purpose: This study aims to measure and compare the profit efficiency of local and international commercial banks in Malaysia before and during the COVID-19 pandemic in accordance with the new Basel Committee III guidelines, which mandate banks to adopt a systematic approach to deal with uncertain economic conditions, including events such as the COVID-19 pandemic. Research methodology: This study uses Data Envelopment Analysis (DEA), a non-parametric method based on linear mathematical programming, to measure the efficiency of local and international commercial banks in Malaysia. Results: The analysis revealed that local international commercial banks were more efficient than local commercial banks before and during the COVID-19 crisis. Limitations: Potential areas for future research involve extending the application of Data Envelopment Analysis (DEA) and examining various dimensions and metrics about different countries, as each country possesses distinct financial contexts. Contribution: This study contributes to the existing body of literature on the profit efficiency of local and international banks. It provides insights that can assist the government in formulating appropriate regulations to enhance banks’ profit efficiency, thereby improving their overall performance.

Explaining Non-Performing Loans of Commercial Banks in Malaysia

This study examines the influence of bank size, capital adequacy, profitability and liquidity on non-performing loans (NPLs). The growing risk of non-performing loans leading to banks’ potential losses motivates this study to be conducted. This study includes commercial banks in the Main Market of Bursa Malaysia from 2010 to 2021. To test the hypotheses, this study employs a Fixed Effect model. The results show that bank size and capital adequacy have a significant and negative relationship with non-performing loans, indicating that banks with larger and higher capital adequacy have lower NPLs. Generally, this study found a limited number of commercial banks listed in the Malaysian market, providing a smaller sample. Nonetheless, the results of this study may benefit commercial banks in the significant factors to prevent the occurrence of non-performing loans.

Analisis Perbandingan Prediksi Financial Distress Pada Bank Umum Syariah di Indonesia dan Malaysia Periode 2017-2021 Menggunakan Metode Altman Z-Score Modifikasi

This study aims to determine the differences in the prediction results of financial distress at Islamic Commercial Banks in Indonesia and Islamic Commercial Banks in Malaysia and to determine the effect of the variable ratios of NPF, CAR and FDR on financial distress. The data analysis method uses the Mann Whitney differential test, the results show that there are differences. besides that the data analysis technique used is panel data regression analysis, simultaneously the ratio of NPF, CAR and FDR affects the value of the Z-Score or financial distress. In Islamic Commercial Banks in Indonesia, partially NPF has no effect on the value of the Z-Score or financial distress. Meanwhile, the CAR and FDR ratios have a positive effect on the Z-Score or financial distress. At Islamic Commercial Banks in Malaysia partially the NPF and CAR ratios have no effect on the Z-Score or financial distress, while the FDR ratio has a negative effect on the Z-Score or financial distress.

The utilization of CAMEL framework in analyzing the financial soundness of commercial banks in Malaysia: Pre and in the time of Covid 19

The COVID-19 pandemic has impacted many aspects of the economy, including commercial banking. This research aims to analyze the health of Malaysia's commercial banks before and during the COVID-19 pandemic. To accomplish this, the authors employed the CAMEL framework, widely recognized as one of the best tools for evaluating a bank's health. The study aims to comprehend the pandemic's impact on the financial health of banks during the pandemic. Secondary data was gathered from the financial statements of eight local commercial banks from 2017 to 2021. Results from this study suggest that the performance of commercial banks in Malaysia was generally stable and well-capitalized, with low non-performing loans and strong profitability before and during COVID-19. This study offers a new understanding of the effect of the pandemic on banking operations in Malaysia, a country whose financial system depends mainly on banks.

Impact on Bank-Specific and Macroeconomic Factors on Liquidity of Domestic and Foreign Commercial Banks in Malaysia

The objective of this paper is to investigate the impact of bank-specific and macroeconomic factors on the liquidity of commercial banks in Malaysia. The study focuses on a sample of 18 banks, including 10 international banks and 8 local banks, from 2009 to 2020. The research utilizes regression analysis, Diagnostic Checking Test and Pooled Ordinary Least Square, to see how different factors affect liquidity determinants between international and local banks. The results reveal that international banks tend to be more liquid than local banks, and the liquidity determinants differ between the two groups. While certain factors are crucial for local banks, they may not be as significant for foreign banks. For instance, the exchange rate has a significant impact on the liquidity risk of local banks, but not on international banks. However, some determinants, such as bank size, leverage, and financial crisis, are found to be significant for both international and local banks. Interestingly, the study also highlights that the liquidity risk posed by international banks remains unaffected by global financial crises., whereas local banks in Malaysia are negatively impacted. This suggests that local banks are less resilient than international banks during financial crises. The findings of this study have practical implications, as they can assist banks in formulating effective liquidity strategies and providing insights to the government for policy interventions to enhance the chances of bank survival, particularly during financial crises.

An Evaluation Study of User Authentication in the Malaysian FinTech Industry With uAuth Security Analytics Framework

The increased cyberattack frequency and ferocity have alerted the fintech industry in detecting existential security threats and risks. Various authentication mechanisms have been deployed to countermeasure cyberattacks; whether these deployed solutions fulfil the security and technical standards has not been significantly investigated. This article proposed an uAuth security analytics framework to evaluate the deployed user authentication mechanisms. Subsequently, the technical evaluation study covered ten major commercial banks in Malaysia, whereas 120 respondents aged 18 to 25 participated in the user awareness study. The result found that mobile banking enforces more robust user authentication mechanisms than internet banking in Malaysia. As 80% of the Malaysia fintech systems only ranked as Level 3 of the uAuth security analytics framework, the authors urge Malaysia fintech industry to enhance their authentication factor, login and transaction verification methods, password policy, as well as readiness for quantum-safe security technologies.

Estimating reliability of scale development in money mule risk assessment among financial crime compliance officers

The threat of money mule syndicate continues to undermine the stability of financial system. Over the years, money mule syndicate has helped to launder ill-gotten funds by colluding as intermediary. The defense of financial system from ensuing money mule problem lies in the responsibility of financial crime compliance officers. Submission of Suspicious Activity Report (SAR) by these officers helps in combatting money mule phenomenon at the enforcement level. Hence, the building of money mule risk assessment among financial crime compliance officers is unequivocally critical. This paper presents the estimation of reliability of instrument developed to measure the novel money mule risk assessment based on Judgment and Decision Making (JDM) theory. Professional self-awareness, task complexity and AML software astuteness are the constructs influencing financial crime compliance officers’ risk assessment in money mule investigation at bank’s level. An instrument with 118 items was developed and disseminated digitally for pilot test. The distribution of instrument targeted financial crime compliance officers working for financial institutions in Malaysia. A total of 31 respondents from commercial banks in Malaysia participated in the pilot test. The four constructs score Cronbach’s values above 0.80 which show good and satisfactory reliability for the next phase of data collection.

The Effectiveness of Anti Money Laundering Regulations of Malaysian Commercial Banks

The Effectiveness of Anti Money Laundering Regulations of Malaysian Commercial Banks

Determinants of money laundering: a study among commercial banks in Malaysia

Banks and other financial institutions are required by law to comply with AML requirements to guarantee they do not facilitate money laundering. However, financial institutions are exceptionally susceptible to money laundering activities in Malaysia. With this concern, this project aimed to identify the determinants which contribute to money laundering activities among commercial banks in Malaysia. Since there are only a few studies have analysed various factors that influence money laundering, this study intends to achieve the aim of the study which is to figure out the level of influence that the factors identified as independent variables on the dependent variable, money laundering. In this study, technology, legal framework, income, and ethical behaviour are acknowledged as the independent variables. A total of 102 survey questionnaires were delivered to commercial bank employees via a convenience sample strategy. Descriptive and inferential statistics were compiled by entering the replies of a total of 102 respondents one by one into SPSS. The results revealed that there is a positive relationship and correlation between all four independent variables; technology, legal framework, income and ethical behaviour towards the dependent variable, money laundering. Consequently, the null hypothesis formulated for this research has been disproved, however, the alternative hypotheses have all been accepted and validated by the data analysis conducted. In addition, this research is claimed to be capable of resolving money laundering difficulties and educating commercial banks on how to identify and prevent money laundering in their organisations.

A Mcdm-Based Model of Malaysian Commercial Bank Performance Prior to and During Covid-19

This study aims to propose the integrated Analytic Hierarchy Process (AHP) with Technique for Order of Preference by Similarity to the Ideal Solution (TOPSIS), VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR), and Preference Ranking Organization Method for Enrichment Evaluations II (PROMETHEE II) to calculate the performance of commercial banks in Malaysia before and during covid-19. The information was taken from the financial statements of eight commercial banks in Malaysia for the years 2018 through 2021. Return on Assets (ROA), Return on Equity (ROE), Earnings per Share (EPS), Liquidity, Total Liabilities, and Total Equity are six selected criteria used to evaluate the overall performance of commercial banks. Malayan Banking Berhad (MBB) had the best performance among Malaysian commercial banks, according to the findings of the research. The AHP-VIKOR and AHP-PROMETHEE II methods demonstrated that Malayan Banking Berhad remained number one for four years. Using the TOPSIS methodology, Malayan Banking Berhad is also ranked first for the years 2020 and 2021. In contrast, Alliance Bank had the worst performance among Malaysian commercial banks. Using the AHP-VIKOR and AHP-PROMETHEE II methods, Alliance Bank's ranking has remained unchanged from 2018 to 2021. In addition, the AHP-TOPSIS method only recorded Alliance Bank in last place for 2018 and 2019. The final trend results for the eight commercial banks in AHP-VIKOR and AHP-PROMETHEE II are virtually identical.

Highlighting Differences in Cash Flow from Investing Activities and Capital Adequacy Ratio Relationship between Indonesian and Malaysian Commercial Banks

This study compares the impact of Cash Flow from Investing Activities (CFI) on the Capital Adequacy Ratio (CAR) between Indonesian and Malaysian commercial banks. The study uses time-series data from the countries' big-five banks from 2009 to 2013. This study engages the regression model to measure the CFI's impact on CAR and then applies a Chow test to compare the discrete regression output between the two countries. The statistical tests reveal that the CFI of Indonesian banks correlated negatively with the CAR, while Malaysian banks showed a positive correlation. Consistent with the correlations, the influence of CFI on CAR in both countries is equally significant. By a Chow test, this study concluded that the CFI's impact on CAR significantly differs between the banks in the countries. From the literature perspective, the CFI and CAR relationship of Malaysian banks is closer to the findings of previous detached studies. The figures indicate that nowadays, Malaysian banking harvests cash inflow from their past investments. Otherwise, the Indonesian banks portray the ongoing spending for long-term investment during the recent five years. This preference results in a consistent decrease in CFI when the CAR moves upward. Departing from the existing differences, to optimize the CFI and CAR relationship, this study suggests the CFI and CAR equilibrium formulation for banks to avoid cash shortages and failure to earn interest due to capital buffer retaining to maintain a high ratio of capital adequacy.

Board Characteristic and Shari’a Banks Performance: Evidence from Indonesia and Malaysia 2015-2020

This study aims to examine the effect of board characteristics on the performance of Islamic banks (IBs) in Indonesia and Malaysia in 2016-2020. The sample of this study includes 11 Islamic commercial banks in Indonesia and 7 Islamic commercial banks in Malaysia. The analysis method uses panel data regression which is processed with the help of software Eviews 12. Performance is measured by Return On Assets (ROA), Return On Equity (ROE), and Non-Performing Financing (NPF), Board characteristics are measured by the size of the board of directors, the proportion of directors women, the expertise of the board of directors, the size of the sharia supervisory board (DPS), the proportion of female DPS and the expertise of the DPS. The results of the study show that overall Islamic Corporate Governance and Corporate Governance have a positive effect on the performance of Islamic Banks (IBs).
 Keywords: Kata kunci: Islamic Banks; Islamic Corporate Governance; Corporate Governance; Performance Islamic Bank