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Examining Risk-Weighted Assets (RWA) Performance after Recent Financial Crisis in Malaysian Banking System

Author

Listed:
  • Siti Nor Amira Mohamad
  • Mohamad Yazis Ali Basah
  • Muhammad Ridhwan Ab Aziz

Abstract

Until recently, there has been only muted debate on the stability of RWA and after the recent financial crisis, the new regulatory framework was introduced that will enrich the quality and level of capital ratios for the banking system. However these capital ratios required to be based on specific risk measurement that permits for appropriate comparison as these gives new prominence to the stability of the underlying RWA. The aim of this paper is to examine the RWA performance after recent global financial crisis in Malaysian banking system. The study uses quantitative approach to examine in detail the RWA performance from year 2012 to 2016 using secondary analysis of bank¡¯s annual report.

Suggested Citation

  • Siti Nor Amira Mohamad & Mohamad Yazis Ali Basah & Muhammad Ridhwan Ab Aziz, 2018. "Examining Risk-Weighted Assets (RWA) Performance after Recent Financial Crisis in Malaysian Banking System," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(5), pages 129-134, May.
    • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:5:p:129-134
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    References listed on IDEAS

    as
    1. Salma Louati & Ilhem Gargouri Abida & Younes Boujelbene, 2015. "Capital adequacy implications on Islamic and non-Islamic bank's behavior: Does market power matter?," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 15(3), pages 192-204, September.
    2. Sonali Das & Mr. Amadou N Sy, 2012. "How Risky Are Banks' Risk Weighted Assets? Evidence From the Financial Crisis," IMF Working Papers 2012/036, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Risk-Weighted Assets (RWA); risk management; global financial crisis; banking system;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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