121 research outputs found
The integration of knowledge management in the operations of Malaysian banks
The globalization of financial markets forced bankers to be knowledge-based and be more efficient in managing knowledge in their banking operations. The importance of this function is accentuated further by the call from the Central Bank of Malaysia (Bank Negara Malaysia) to integrate the concepts of knowledge management in banking operations. In this paper, we discuss a research model called: Banking Knowledge Management Model (BKMM),which encompasses knowledge creation, knowledge retention and knowledge sharing and more importantly, how each of these elements can be integrated to enhance the quality of banking operations. The various components of BKMM are explained and we illustrate the application of BKMM in two Malaysian commercial banks. We find that the two banks apply the concept of knowledge management in line with BKMM but differ in their knowledge management approach. Despite different approach, both banks derive many benefits from applying knowledge management in their operations. We expect
a wider application of BKMM by other banks in Malaysia would create a culture that promote and enhance knowledge management in the banking sector
Key risk determinant of listed deposit-taking institutions in Malaysia
Risk management is a critical function in banking operations in the wake of several banking crises.
However; we find few studies on risk management and a lack of empirical investigation on factors affecting the risk of Malaysian banks. These gaps have motivated us to identify the main factors associated with the risk of locally listed deposit-taking institutions. The findings show that three factors were signlficantly associated with unsystematic risk, while the systematic risk and the total risk of these
deposit-taking institutions were significantly affected by four main factors. These four factors namely non-performing loans, cost of funds, loan to deposit ratio and inter-bank offered rate however; were found to have a more profound effect on the total risk than on the systematic risk or the unsystematic risk of Malaysian deposit-taking institutions
Global Financial Crisis: Lessons Learned
A financial crisis appears to occur in a certain pattern; it usually starts with a rally of bank credits against a backdrop of easier monetary policy, ample liquidity, and more relaxed banking regulations. Such financial environment stimulates excess leverage to fund assets in real estates and housing in which consumers take advantage of cheap money and borrow heavily, while bankers zealously lend out in order to achieve high loan growth targets. As with all levered instruments, this practice generates great profits when the asset value rises. In contrast, it produces great losses when the assets fall in value, forcing lenders to ration credits and to compete aggressively for funds to cover the resultant losses. Retrospectively, the Global Financial Crisis exhibits far reaching implications from the excessive leverage, deregulation and from the spiral effects of globalisation, financial speculation, product innovation, moral hazards, and incentives problems. This paper reflects how similar or different the Global Financial Crisis is from the past crises in terms of its causes and manifestations, how Malaysia was impacted, and what key lessons could be learned from it.
Keywords: Financial crisis; risk taking and banking
Global financial crisis: Lessons learned
A financial crisis appears to occur in a certain pattern; it usually starts with a rally of bank credits against a backdrop of easier monetary policy, ample liquidity, and more relaxed banking regulations.Such financial environment stimulates excess leverage to fund assets in real estates and housing in which consumers take advantage of cheap money and borrow heavily, while bankers zealously lend out in order to achieve high loan growth targets. As with all levered instruments, this practice generates great profits when the asset value rises.In contrast, it produces great losses when the assets fall in value, forcing lenders to ration credits and to compete aggressively for funds to cover the resultant losses.Retrospectively, the Global Financial Crisis exhibits far reaching implications from the excessive leverage, deregulation and from the spiral effects of globalisation, financial speculation, product innovation, moral hazards, and incentives problems.This paper reflects how similar or different the Global Financial Crisis is from the past crises in terms of its causes and manifestations, how Malaysia was impacted, and what key lessons could be learned from it
Evaluation of fatty liver in breast cancer patients and its metastatic potential
Background: Non-alcoholic fatty liver disease (NAFLD) has a higher prevalence
among breast cancer patients compared to the normal population and is one of the
risk factors for extrahepatic carcinogenesis. It has also increased the risk of primary
tumour progression, risk of distant metastasis, and tumour recurrent. However, to
date, not many clinical studies were done to evaluate fatty liver and metastatic risk.
Thus, further clinical study is needed. This study aims to evaluate the association of
fatty liver with distant metastasis and metastatic site.
Methods: A cross-sectional study was conducted in Hospital Universiti Sains
Malaysia (HUSM), Kelantan, Malaysia on histopathological confirmed female breast
carcinoma patients from January 2014 till December 2020. The evaluation of fatty
liver done were made on a plain CT abdomen images with reference of contrasted
images. Three regions of interest (ROI) were drawn on the liver and spleen and the
Hounsfield unit (HU) was documented. Liver to splenic ratio (L/S ratio) was
calculated by dividing the average liver HU to splenic ratio. L/S ratio of less than 1.0
was taken as fatty liver. Evaluation of distant metastasis was also done. The
association of fatty liver with distant metastasis and metastatic site were evaluated.
Results: Out of 624 screened subjects, a total of 332 subjects with
histopathologically proven breast carcinoma patients that underwent CT scan stage
including thorax, abdomen, and pelvis scans were included as participants in th is
study. Mean age was 53 years (SD±10.93) ranging from 28 to 82 years old, 45.5% (n—151) had tumour size of > 5 cm, 51.8% (n=l 72) had metastasis at diagnosis. The most common metastasis site was the lung, followed by bone and liver. The
prevalence of fatty liver in the study population was 27.2% (n=91). This current
study showed association of fatty liver with distant metastasis. Association of fatty
liver with lung metastasis were also demonstrated. However, there was no
association between fatty liver and distant metastasis or with the site of metastasis in
tumour size of <5cm.
Conclusion: Prevalence of fatty liver in breast carcinoma patients in our study was
27.2%, which corresponds to most of other studies. Considering the existing studies
investigating the relationship between fatty liver and breast cancer, our study results
showed a similar finding of an association of fatty liver with distant metastasis.
Association of fatty liver with distant metastatic site to lung and pleura were also
demonstrated. However, no association between fatty liver and distant metastasis or
metastatic sites in tumour size of <5cm
Determinants of liquidity risk in dual and fully Islamic banking systems: Evidence from Malaysia and Sudan
The objective of this study is to compare the determinants of liquidity risk of Islamic banks in the two environments of full Islamic banking scheme and dual banking system.The researchers used samples of Islamic banks in Sudan and Malaysia to represent the two banking environment. Data sourced from Islamic Banks Information System (IBIS) provided by Islamic Research and Training Institute(IRTI) for three banks in each of the countries from 2004 and 2015 was used for the study.Using Ordinary Least Regression Analysis (OLS) and panel data analysis techniques, the authors conclude that the different environment the Islamic banks operate determines the significance of liquidity risk determinants.There are conflicting effects of bank’s specific(micro) factors including bank’s size, capital adequacy ratio as well as macroeconomic variables like GDP and Money Supply on liquidity of Islamic banks. However, the study concludes that management efficiency proxied by deployment ratio is a common factor in the two settings. The authors recommend future study on comparison of liquidity risk management policies and structures of Islamic banks in the two environments
Recapitalization Effectiveness and Performance of Banks in Malaysia
Recapitalization through capital injection is one of the strategies for banks to strengthen their banking system from the possibility of bank failures. Banks cannot deny that capital is one of the most important components to run their business. In spite of that, few studies have been conducted to assess the effectiveness of such strategy on Asian banks. This paper investigates the effectiveness of capital injection in the Malaysian banking sector which was adversely hit by the financial crisis. Panel data from 1997 to 2014 was used. The financial data is obtained from annual reports published in Bank Scope and The World Bank database. The data were processed using Panel Least Square and Random effect model. The empirical analysis reveals that, GDP, CAR, previous year capital injection and loan write-off (LWO) explain 89.6 percent of the variance in capital injection effectiveness. CAR and LWO/TA are significant at 5 percent confidence level. The evidence from the results shows that recapitalization is vital for long term survival of the banking sector. The study recommends that in order to improve the profitability of banking sector, the banks should write off bad loans and ensure they have adequate capital either through capital injection, or growth to withstand financial risks
Evaluation Of Performance Of Malaysian Banks In Risk Adjusted Return On Capital (Raroc) And Economic Value Added (Eva) Framework
As Malaysian banks step into Basel-III era, a close look at their performance on risk
adjusted basis using RAROC and EVA would throw significant light on their relative
strengths and weaknesses. Post restructuring during 1999–2000, the regulatory
framework of Bank Negara Malaysia (BNM) throughout 2001–2010 was mainly centered
on capitalisation, risk management and governance practices in banks. Financial Sector
Blue Print is viewed as the reference framework for growth of banks in the current
decade. Though numerous studies have evaluated the performances of Malaysian banks
in terms of efficiency and productivity gains before and after the merger and also at
various phases during the last decade, no study has so far been reported to evaluate their
performances using the above framework. This paper intends to fill up this gap. The
period covered is 2001 to 2013. Findings of this paper would be of keen interest to the
policy planners, investors and researchers alike
The efficiency of Islamic banks: empirical evidence from the Asian countries’ Islamic banking sectors
Abstract: The paper investigates the efficiency of the Islamic banking sectors in four Asian countries during the period of 2001–2006. The efficiency estimates of individual banks are evaluated using the non-parametric data envelopment analysis (DEA) method. The results suggest that the Asian Islamic banks have exhibited mean technical efficiency highest of 86.5% at 2004 during study period suggesting mean input waste of 13.5%. This implies that the Islamic banks in the Asian countries could have produced the same amount of outputs by only using 86.5% of the amount of inputs they employed. The empirical findings suggest that during the period of study, pure technical inefficiency outweighs scale inefficiency in Asian countries banking sectors. Overall the results imply that during the period of study, although the Asian Islamic banking sectors have been operating at a relatively optimal scale of operations, they were relatively managerially inefficient in controlling their operating costs and utilising their resources to the fullest.Islamic banks; data envelopment analysis; DEA; Asia
Determinants of Sales Force Performance in Banking Sector: A Case of Malaysia
Globalisation, deregulation, technology, competition and new customers’ needs influence the banks to adopt marketing approach in promoting their product and services to generate income. In this aspect, personal selling which focuses on selling skills of banking employees becomes a very important banking function. This study intends to investigate the relationship between the determinants namely teamwork, learning, leadership, communication and, high performance culture and Key Performance Indicators (KPI). Inspite of the importance of KPI in measuring performance of salesforce, there is a lack of published empirical findings to explain the influence of these predictors on KPI achievement in banking sector.This study reported that the model explains 0.21 percent of the variance in KPI achievement. In which teamwork and high performance culture are found to be positive and significantly related. This new finding appears to imply that bank should cultivate and promote teamwork and high performance culture to ensure KPI highly achievable and enhance banks profitability
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