Determinants of banks profitability in Malaysia / Norhani Karmila Mohd Khirol Hisham

The purpose is to determine the factors that influencing the profitability of the selected banks in Malaysia. Profitability is the main factor that can determine the bank's stability to survive in the long run and the research will be done by investigating the internal and external factors that can impact the bank's profitability. Therefore, the objective of this paper is to investigate the profitability of the selected banks in Malaysia. There are four independent variables will be examined to determine their relationship with bank's profitability and the data collected is from year 2009 until 2019. The study intends to carry out the determinants that influence the stability of the banks to enhance the profitability of the banks. Banks always has a problem in determining the main factor that influences their profitability and it has been an argument that profitability is the main factor that determines the survival of the company to survive in a long run. It's also one of the main contributors for a developing country such as Malaysia. Therefore, the study is to evaluate the determinants that influence the bank's profitability and find the relationship between size of the banks, bank's efficiency, liquidity, economic condition as the independent variables and the return on asset as the dependent variable. A quantitative analysis by analysing the data collected from 2009 until 2019 by using Pooled Ordinary Least Square.