PROSIDING PERKEM VI, JILID 1 (2011) 546 – 560 ISSN: 2231-962X
Overview of Malaysian Full Banking Market: An Commercial Organizational Perspective Nafisah Mohammed ([email protected] my) Pusat Pengajian Ekonomi Fakulti Ekonomi lalu Pengurusan Universiti Kebangsaan Malaysia Suhaila Abdul Jalil ( [email protected] edu. my) Jabatan Ekonomi Fakulti Ekonomi serta Pengurusan Universiti Putra Malaysia
ABSTRACT The attempt with this paper should be to analyze the Malaysian retail banking marketplace within structure-conductperformance paradigm construction which roots from the industrial organizational field. The Malaysian retail bank market practices dual banking system which usually consists of conventional and Islamic banking organizations. Therefore , the analysis through this paper is going to focus on the structure, conduct and performance of both bank system descriptively. The composition of the price tag banking industry will also aimed at several aspects such as marketplace size and distribution, marketplace competitiveness, marketplace delineation and barriers to entry. While, marketing bills, distribution of the branches and the quality of services will probably be analyzed to judge the banking firms conduct in the market. In the meantime, the functionality of the banking firms will probably be analyzed by two viewpoints namely, percentage analysis and welfare points of views. Overall, the research shows that the two domestic and foreign financial firms enjoy a significant part in the Malaysian retail banking market. Keywords: Banking; Commercial Organization; Structure-conduct-performance;
INTRODUCTION In accordance to Celebridad (1985), equally capital industry and financial market build strong human relationships between consumers and lenders but banking companies have relative advantage out-do capital marketplace. This is due to the superior capability of banks that can provide loans or perhaps debt to the borrowers with inside details. For instance, the financial institution will collect the information of the customers including their profits and expenditure pattern whilst process all their loan application. Furthermore, the theory of asymmetric details, Diamond (1984) show that special part of traditional bank is to lessen the company cost between borrowers and lenders by simply monitoring the borrowers in low cost. Alternatively, the special function of banks is always to transform illiquid assets in liquid liabilities, providing insurance against liquidity risk with private information to agents. Hence, banks occur because of incomplete and asymmetric information in the financial market segments. Banks play very important and active role in the economical development of a rustic via different channel of distribution. For example, banks promote capital formation, investment in new enterprises, promote the introduction of trade and industry, good influence around the country's economic climate and help to promote export. Therefore , an effective and efficient banking system will bring about speedy growth inside the various sectors of the economy. In Malaysia both Islamic and standard banks add towards the growth in the bank system thus, to the financial growth of the country. Banks turn into a major supply of finance along the way of advancement and also regarded as a ‘life-line' of modern control and business. For instance, total loan provided by retail financial system in Malaysia is approximately RM65, 503. 8 mil in 2010. The total loan disbursed by the banking companies is used pertaining to various monetary purposes in order to stimulate usage and expense activities that may continually improve economy development. Base in these factors, banking industry has been one of many selected companies that may help Malaysia to achieve the position of high salary country. Based on the Central Lender of Malaysia report the banking program constitutes about 50 percent from the financial anatomy's assets. The development and the improved productivity of financial program tend to always be the good reason in the growth in Malaysia assistance sector by simply 1 . six percent in the second quarter of 2009.
Persidangan Kebangsaan Ekonomi Malaysia ke VI...
References: Efficiency Productive and allocative productivity Progress Total employment Resource: Neuberger (1998) and Waldman et. ing (1998). FIGURE 1: SCP Framework pertaining to Banking Marketplaces
Nafisah Mohammed, Suhaila Abdul Jalil
TABLE five: Bank Limbs by Declares in Malaysia, 2009NO