Performance and financial ratios of commercial banks in Malaysia / Nur Fatin Fakhira Rahman

Commercial banks performance a vital role in the economic resource allocation of countries. They channel funds from depositors to investors continuously. They can do so, if they generate necessary income to cover their operational cost they incur in the due course. In other words for sustainable intermediation function, banks need to be profitable. Beyond the intermediation function, the financial performance of banks has critical implications for economic growth of countries. On the other hand, poor banking performance can lead to banking failure and crisis which have negative repercussions on the economic growth. This paper aims to investigate the impact of bank-specific factors which include the liquidity, credit, capital, and operating expenses of commercial banks on their performance, which is measured by return on average assets (ROAA) and return on average equity (ROAE). As for this sample of this study, it comprises of 45 observations each for the independent variable and dependent variables on a yearly basis years period from 2011 to 2015. A software package called Stata I l will be used in finding and analyzing the data. The research result is about to found the relationship between bank profitability towards the bank-specific factors. Other than that, looked at different side others countries how they do performance towards their commercial bank. This research has done with nine types of commercial banks which Hong Leong Bank Berhad, Affin bank Berhad, CIMB Bank Berhad, Malayan Banking Berhad, Public Bank Berhad, RHB Bank Berhad, OCBC Bank (Malaysia) Berhad, Bank of America Malaysia Berhad and CitiBank. The data that researcher analyzed from Osiris.