Performance and Financial Ratios of Commercial Banks in Malaysia and China
Posted: 24 Aug 2010
Date Written: August 23, 2010
This study aims to investigate the impact of bank-specific factors which include the liquidity, credit, capital, operating expenses and the size of commercial banks on their performance, which is measured by return on average assets (ROAA) and return on average equity (ROAE). The results imply that ratios employed in this study have different effects on the performance of banks in both countries, except credit and capital ratios. Operating ratios influence performance of banks in China, but this influence is not true for Malaysian banks regardless of the measure of performance.
Keywords: bank performance, bank reform, financial ratios
JEL Classification: G21
Suggested Citation: Suggested Citation