Advanced International Journal of Banking, Accounting and Finance
Commercial banks play a pivotal role as a financial intermediary in mobilizing funds among the se... more Commercial banks play a pivotal role as a financial intermediary in mobilizing funds among the sectors such as private households, business firms, and the government. Investment activities, business expansion, and industrial development depend largely on the funds, without which a country’s economy will be stagnant and even worse the economy is going to be in catastrophe. Apparently, lending activity is the core business of commercial banks that contributes the largest income proportion to the banks. Therefore, this paper aims to examine the four specific internal factors influencing the commercial banks’ lending behaviour. Sampling from the year 2009 to 2018, this study evidences that the volume of deposit, level of liquidity and bank size significantly influences the lending behaviour of commercial banks in Malaysia after the 2007/2008 global financial crisis. Specifically, the volume of deposit and non-performing loans negatively influence the banks’ lending behaviour whereas the...
Advanced International Journal of Banking, Accounting and Finance
Previous studies pertaining to the co-movement and causal relationship between Malaysian stock ma... more Previous studies pertaining to the co-movement and causal relationship between Malaysian stock markets and domestic macroeconomic variables are by now quite well documented. Nonetheless, to the best of authors’ knowledge, there is a void in the literature about foreign macroeconomic variables. Therefore, this paper aims to examine co-movement and causal relationship between FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) with foreign macroeconomic variables namely world crude oil price, gold price, and five world major stock market indices; Singapore’s Straits Times Index (STI), Chinese Shanghai A-Share Index (SHAI), the US’s Dow Jones Industrial Average (DJIA), Hong Kong’s Hang Seng Index (HSI) and Japanese Nikkei 225 Index (NIK). We also include domestic macroeconomic variables namely private sector domestic credit, gross international reserves and foreign currency assets, and an exchange rate of Malaysian ringgit (MYR) to the US dollar (USD) in this study. Using 9-year...
Advanced International Journal of Business, Entrepreneurship and SMEs
Gold is one of the world-leading commodities, which is sought after as jewellery as well as an in... more Gold is one of the world-leading commodities, which is sought after as jewellery as well as an investment. Despite gold advantage as a reliable store of value, its price has been as fluctuating as other commodities or assets such as crude oil and stock. Therefore, investors should be aware that gold is not totally resistant to market turmoil and economic crisis. Gold could be as vulnerable as other traditional investment vehicles. Hence, this paper focuses on investigating the macroeconomic variables affecting gold prices in Malaysia using monthly data from 2014 to 2018. This study uses Pearson Correlation and Multiple Linear Regression tests to determine significant relationships and effects between the independent variables, namely interest rates, inflation rates, crude oil price, and exchange rates with the dependent variable, namely gold price. The findings show that the interest rate has a significant negative effect on gold price while inflation rate, crude oil price, and exch...
Advanced International Journal of Banking, Accounting and Finance
Commercial banks play a pivotal role as a financial intermediary in mobilizing funds among the se... more Commercial banks play a pivotal role as a financial intermediary in mobilizing funds among the sectors such as private households, business firms, and the government. Investment activities, business expansion, and industrial development depend largely on the funds, without which a country’s economy will be stagnant and even worse the economy is going to be in catastrophe. Apparently, lending activity is the core business of commercial banks that contributes the largest income proportion to the banks. Therefore, this paper aims to examine the four specific internal factors influencing the commercial banks’ lending behaviour. Sampling from the year 2009 to 2018, this study evidences that the volume of deposit, level of liquidity and bank size significantly influences the lending behaviour of commercial banks in Malaysia after the 2007/2008 global financial crisis. Specifically, the volume of deposit and non-performing loans negatively influence the banks’ lending behaviour whereas the...
Advanced International Journal of Banking, Accounting and Finance
Previous studies pertaining to the co-movement and causal relationship between Malaysian stock ma... more Previous studies pertaining to the co-movement and causal relationship between Malaysian stock markets and domestic macroeconomic variables are by now quite well documented. Nonetheless, to the best of authors’ knowledge, there is a void in the literature about foreign macroeconomic variables. Therefore, this paper aims to examine co-movement and causal relationship between FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) with foreign macroeconomic variables namely world crude oil price, gold price, and five world major stock market indices; Singapore’s Straits Times Index (STI), Chinese Shanghai A-Share Index (SHAI), the US’s Dow Jones Industrial Average (DJIA), Hong Kong’s Hang Seng Index (HSI) and Japanese Nikkei 225 Index (NIK). We also include domestic macroeconomic variables namely private sector domestic credit, gross international reserves and foreign currency assets, and an exchange rate of Malaysian ringgit (MYR) to the US dollar (USD) in this study. Using 9-year...
Advanced International Journal of Business, Entrepreneurship and SMEs
Gold is one of the world-leading commodities, which is sought after as jewellery as well as an in... more Gold is one of the world-leading commodities, which is sought after as jewellery as well as an investment. Despite gold advantage as a reliable store of value, its price has been as fluctuating as other commodities or assets such as crude oil and stock. Therefore, investors should be aware that gold is not totally resistant to market turmoil and economic crisis. Gold could be as vulnerable as other traditional investment vehicles. Hence, this paper focuses on investigating the macroeconomic variables affecting gold prices in Malaysia using monthly data from 2014 to 2018. This study uses Pearson Correlation and Multiple Linear Regression tests to determine significant relationships and effects between the independent variables, namely interest rates, inflation rates, crude oil price, and exchange rates with the dependent variable, namely gold price. The findings show that the interest rate has a significant negative effect on gold price while inflation rate, crude oil price, and exch...
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