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Financial deregulation in Malysian banking

Financial deregulation in Malysian banking
Financial deregulation in Malysian banking
The purpose of this paper is to evaluate the extent and impact of deregulation in the Malaysian Banking System. In particular, the focus is on the extent to which the deregulation process has contributed to competition, stability and financial fragility, and the reallocation of portfolios and liquidity in the banking system. The results indicate that: first, an increase in the degree of competition and a reduction in liquidity and a better reallocation and bank's portfolios. Second, financial fragility and poor assets quality, together with bad management have forced the Central Bank to take further steps to maintain public confidence and slowed recovery. Third, interest rates are expected to be able to interact closely with economic activity and inflation.
0393-4551
457-472
Ismail, A.G.
9f0de874-d4c4-4a4f-8e6a-f59d1b10aa44
Smith, P.
7085f0ad-c538-4208-80f4-e9b3fd36b365
Ismail, A.G.
9f0de874-d4c4-4a4f-8e6a-f59d1b10aa44
Smith, P.
7085f0ad-c538-4208-80f4-e9b3fd36b365

Ismail, A.G. and Smith, P. (1994) Financial deregulation in Malysian banking. Savings and Development, 18 (4), 457-472.

Record type: Article

Abstract

The purpose of this paper is to evaluate the extent and impact of deregulation in the Malaysian Banking System. In particular, the focus is on the extent to which the deregulation process has contributed to competition, stability and financial fragility, and the reallocation of portfolios and liquidity in the banking system. The results indicate that: first, an increase in the degree of competition and a reduction in liquidity and a better reallocation and bank's portfolios. Second, financial fragility and poor assets quality, together with bad management have forced the Central Bank to take further steps to maintain public confidence and slowed recovery. Third, interest rates are expected to be able to interact closely with economic activity and inflation.

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More information

Published date: 1994

Identifiers

Local EPrints ID: 33026
URI: http://eprints.soton.ac.uk/id/eprint/33026
ISSN: 0393-4551
PURE UUID: ec5df109-725c-40fd-9146-928235061c45

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Date deposited: 09 Jan 2008
Last modified: 11 Dec 2021 15:18

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Contributors

Author: A.G. Ismail
Author: P. Smith

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