Author

  • Nur Afizah Muhamad Arifin

    • Faculty of Business and Management, Universiti Teknologi MARA, Malaysia
    • Malaysia

  • ‘Ismah Osman

    • Faculty of Business and Management, Universiti Teknologi MARA, Malaysia
    • Malaysia

  • Norhasimah Shaharuddin

    • Faculty of Business and Management, Universiti Teknologi MARA, Malaysia
    • Malaysia

  • Fauzias Mat Nor

    • Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia
    • Malaysia

Abstract

This study employs quantile regression analysis to examine the impact of financial liberalization on the performance of Malaysian banks, focusing on how these effects vary across different performance levels. A liberalized banking sector prompted commercial banks to intensify risk-taking activities, which ultimately could affect the bank’s performance. Using quantile regression analysis, it shows that only the middle quantile indicates all the significant variables for both OLS and quantile analysis. This study found that lowerperforming banks may face adverse effects, including increased risk and deteriorating performance, due to heightened financial liberalization. The findings highlight the differential impact of financial liberalization across the performance spectrum and suggest that while liberalization can drive economic growth targeted regulatory measures are necessary to support less and mitigate potential risks to overall financial stability in Malaysia.

Keywords

References

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How to Cite

Muhamad Arifin, N. A., Osman, ‘Ismah, Shaharuddin, N., & Mat Nor, F. (2024). Analyzing the Impact of Financial Liberalization on Malaysian Bank’s Performance: Quantile Regression Analysis. Information Management and Business Review, 16(3(I)S), 464-474. https://doi.org/10.22610/imbr.v16i3(I)S.4074

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Vol. 16 No. 3(I)S (2024) Supply Chain Sustainability, Smart HRM & Inclusive Education View issue contents

Published

2024-10-07

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