Determinants of commercial bank's liquidity in Malaysia : During and post global financial crisis / Umairah Roslan

This paper is to investigate the determinants of commercial bank's liquidity in Malaysia. This study obtained secondary data from 16 Malaysia This paper is to investigate the determinants of commercial bank's liquidity in Malaysia. This study obtained secondary data from 16 Malaysia commercial banks which divided foreign local and into two categorize to make a comparative analysis between local and foreign commercial banks in the year 2008 until 2016 during world financial crisis and post-crisis with panel data regression analysis. The independent factors in this study have classified into bank-specific factor and macroeconomic factor. The internal factors (bank specific) that affect towards liquidity are including Capital adequacy, Profitability, and Non-performing Loan while external factors (macroeconomic) are Gross Domestic Product and Financial Crisis. Hence, Capital adequacy, Gross Domestic Product and Financial Crisis for both banks have a significant relationship on bank liquidity while Non-performing Loan is not significant for overall. Profitability is a significant relationship on bank liquidity for foreign banks but insignificant for local banks.