Determinants of commercial banks profitability in Malaysia / Ahmad Rasydan Syazwan Rahaman

This research aims to determine determinants of commercial banks profitability in Malaysia by analysing recent data from 2010 to 2020. The research was performed using Return on Assets (ROA) to examine the relationship between capital adequacy, credit risk, management efficiency and liquidity risk. The data collected are return on asset (ROA), capital adequacy, credit risk, management efficiency and liquidity risk, from Bursa Malaysia and company websites. Additionally, secondary data will be used to gather information and provide evidence for this analysis.
Thus, the investigations intend to evaluate whether determinants such as capital adequacy, credit risk, management efficiency and liquidity risk are the determinants of commercial bank profitability in Malaysia. To examine the factual relationship and evaluate the hypotheses, this paper used Multiple Linear Regression. E-views 2012 Software was used to analyses the results.
Keywords: Determinants, commercial banks, profitability, return on asset, capital adequacy, credit risk, management efficiency, liquidity risk.