Cover Image

Measuring the regulatory performance in Malaysia banking industry: Compliance as a lens to determine the regulatory effectiveness and profitability of a financial institution

Development in the region financial market over the past decade have placed great scrutiny on the effectiveness of regulatory and profitability of Malaysia banking industry. This study will explore on how compliance elements work as a lens in determining the regulatory effectiveness of Malaysia ba...

Full description

Saved in:
Bibliographic Details
Main Author: Thong, Yow Fong
Format: Thesis
Language:English
English
Published: 2015
Subjects:
HG Finance
Online Access:http://etd.uum.edu.my/5555/
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.uum.etd.5555
record_format eprints
spelling my.uum.etd.55552021-03-29T09:51:56Z http://etd.uum.edu.my/5555/ Measuring the regulatory performance in Malaysia banking industry: Compliance as a lens to determine the regulatory effectiveness and profitability of a financial institution Thong, Yow Fong HG Finance Development in the region financial market over the past decade have placed great scrutiny on the effectiveness of regulatory and profitability of Malaysia banking industry. This study will explore on how compliance elements work as a lens in determining the regulatory effectiveness of Malaysia based financial institution. And how the given five key determinants such as the compliance awareness and training; internal audit (CA), Unambiguous regulation; (UR) Compliance Culture(CC), Robust system and process (RS); and Non compliance cost and hefty monetary of penalties ( NCC) in formulating the regulatory effectiveness. This study is targeted at in examining the relationships between the extent of compliance with international best practices concerning of operating as well as governance performance. In my research model, return on equity, return on asset, and net interest margin are defined as proxies of profitability, and while capital adequacy are defined as the proxies of regulatory effectiveness. The research collects data from the selected employees both in government and private sector and formulated five hypotheses which are related to the research question. A series of statistical test are performed in order to test if the relationship exists, while other statistical test is to investigate the relationship stable or not. The study performs an ordinal regression analysis of the data from 2008 to 2014. The findings reveal that all the five key determinants have positive significant effect on the regulatory effectiveness. Further test indicate that the financial soundness indicator, such as return on equity (ROE) and return on asset (ROA) are significantly associated with the capital adequacy ratio (CAR). However, in contrast to theory, my reports evidence of a negative relationship between regulatory performance and net interest margin (NIM) of a financial institution. The result generally supported the hypothesized fact that compliance as the catalyst for operational excellence and poor governance malaise. The study recommend that the regulatory authorities both internal and external be involve in the screening and governance monitoring beyond the current compliance practice in both letter and spirit 2015 Thesis NonPeerReviewed text en /5555/1/s814106_01.pdf text en /5555/2/s814106_02.pdf Thong, Yow Fong (2015) Measuring the regulatory performance in Malaysia banking industry: Compliance as a lens to determine the regulatory effectiveness and profitability of a financial institution. Masters thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
topic HG Finance
spellingShingle HG Finance
Thong, Yow Fong
Measuring the regulatory performance in Malaysia banking industry: Compliance as a lens to determine the regulatory effectiveness and profitability of a financial institution
description Development in the region financial market over the past decade have placed great scrutiny on the effectiveness of regulatory and profitability of Malaysia banking industry. This study will explore on how compliance elements work as a lens in determining the regulatory effectiveness of Malaysia based financial institution. And how the given five key determinants such as the compliance awareness and training; internal audit (CA), Unambiguous regulation; (UR) Compliance Culture(CC), Robust system and process (RS); and Non compliance cost and hefty monetary of penalties ( NCC) in formulating the regulatory effectiveness. This study is targeted at in examining the relationships between the extent of compliance with international best practices concerning of operating as well as governance performance. In my research model, return on equity, return on asset, and net interest margin are defined as proxies of profitability, and while capital adequacy are defined as the proxies of regulatory effectiveness. The research collects data from the selected employees both in government and private sector and formulated five hypotheses which are related to the research question. A series of statistical test are performed in order to test if the relationship exists, while other statistical test is to investigate the relationship stable or not. The study performs an ordinal regression analysis of the data from 2008 to 2014. The findings reveal that all the five key determinants have positive significant effect on the regulatory effectiveness. Further test indicate that the financial soundness indicator, such as return on equity (ROE) and return on asset (ROA) are significantly associated with the capital adequacy ratio (CAR). However, in contrast to theory, my reports evidence of a negative relationship between regulatory performance and net interest margin (NIM) of a financial institution. The result generally supported the hypothesized fact that compliance as the catalyst for operational excellence and poor governance malaise. The study recommend that the regulatory authorities both internal and external be involve in the screening and governance monitoring beyond the current compliance practice in both letter and spirit
format Thesis
author Thong, Yow Fong
author_facet Thong, Yow Fong
author_sort Thong, Yow Fong
title Measuring the regulatory performance in Malaysia banking industry: Compliance as a lens to determine the regulatory effectiveness and profitability of a financial institution
title_short Measuring the regulatory performance in Malaysia banking industry: Compliance as a lens to determine the regulatory effectiveness and profitability of a financial institution
title_full Measuring the regulatory performance in Malaysia banking industry: Compliance as a lens to determine the regulatory effectiveness and profitability of a financial institution
title_fullStr Measuring the regulatory performance in Malaysia banking industry: Compliance as a lens to determine the regulatory effectiveness and profitability of a financial institution
title_full_unstemmed Measuring the regulatory performance in Malaysia banking industry: Compliance as a lens to determine the regulatory effectiveness and profitability of a financial institution
title_sort measuring the regulatory performance in malaysia banking industry: compliance as a lens to determine the regulatory effectiveness and profitability of a financial institution
publishDate 2015
url http://etd.uum.edu.my/5555/
_version_ 1696978291866468352
score 13.211869

Similar Items