Bank fragility of ASEAN countries in 21st century: Malaysia, Indonesia, Thailand and Philippines / Farah Faez Abu Nor Razy

The purpose of this research is to identify the factors significant in explaining the bank fragility in ASEAN countries in 21st Century. Does the independent variable capital adequacy (Tier l, Total capital ratio and Capital fund to total asset), asset quality (Loan losses to gross loan, Loan loss provision to Net interest revenue), leverage (Equity to total asset, Equity to liabilities and Capital fund to total liabilities), liquidity (Total loan to total assets, Net loans to total deposits and borrowing and liquid assets to total deposits and borrowing) and profitability (Return on asset, Return on equity and Net interest margin) has a significant effect on the banks fragility. This study has categorized the independent factors into financial ratio factors. This study obtained secondary data from Bankscopes and UiTM Online Databases from year 2010 until year 2015. This study concludes the results based on panel data by using logistic regression analysis method. The factors that has a significant effect on the bank fragility are capital adequacy (Tier I and Capital fund to total asset ratio), asset quality (Loan losses to gross loan and Loan loss provision to Net interest revenue), leverage (equity to total asset ,equity to liabilities and capital fund to total liabilities), liquidity (total loan to total assets and net loans to total deposits and borrowing) and profitability (return on asset and return on equity) on the other hand, factors to bring negative effect to bank fragility are capital adequacy (total capital ratio, profitability (net interest margin).