Globalization and financial sector's net-interest margins: do specialization and ownership make a difference?

Globalization and financial sector's net-interest margins: do specialization and ownership make a difference?

The impact of globalization on the well-being of the economy has been widely documented in the literature. Noticeably absent is empirical evidence on the impact of globalization on financial sector’s net-interest margins (NIMs). This limitation is somewhat surprising, given the fact that the financi...

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Main Author: Sufian, Fadzlan
Format: Article
Language:English
Published: Taylor & Francis 2012
Subjects:
HG1501 Banking
Online Access:http://irep.iium.edu.my/5198/
http://irep.iium.edu.my/5198/
http://irep.iium.edu.my/5198/
http://irep.iium.edu.my/5198/1/SIJ_2011.pdf
id iium-5198
recordtype eprints
spelling iium-51982014-07-17T03:45:51Z http://irep.iium.edu.my/5198/ Globalization and financial sector's net-interest margins: do specialization and ownership make a difference? Sufian, Fadzlan HG1501 Banking The impact of globalization on the well-being of the economy has been widely documented in the literature. Noticeably absent is empirical evidence on the impact of globalization on financial sector’s net-interest margins (NIMs). This limitation is somewhat surprising, given the fact that the financial sector remains the most important channel for savings and allocations of credit. By using the data on Malaysian financial institutions, this paper attempts to fill this demanding gap. The research has found that greater economic integration via higher trade flows, cultural proximity, and political globalization have a significant and negative influence on Malaysian financial institutions’ NIMs. The impacts of personal contacts and information flows seem to work in favour of Malaysian financial institutions. During the period under study, the researchers found that liberalization (restrictions) of the capital account exerts a negative (positive) influence on Malaysian financial institutions’ NIMs. However, the impacts are not uniform across financial institutions of different specializations and ownership structures. Taylor & Francis 2012 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5198/1/SIJ_2011.pdf Sufian, Fadzlan (2012) Globalization and financial sector's net-interest margins: do specialization and ownership make a difference? The Service Industries Journal, 32 (12). pp. 1-35. ISSN ISSN: 0264-2069 Online ISSN: 1743-9507 (In Press) http://www.tandfonline.com/doi/pdf/10.1080/02642069.2011.594877 10.1080/02642069.2011.594877
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
spellingShingle HG1501 Banking
Sufian, Fadzlan
Globalization and financial sector's net-interest margins: do specialization and ownership make a difference?
description The impact of globalization on the well-being of the economy has been widely documented in the literature. Noticeably absent is empirical evidence on the impact of globalization on financial sector’s net-interest margins (NIMs). This limitation is somewhat surprising, given the fact that the financial sector remains the most important channel for savings and allocations of credit. By using the data on Malaysian financial institutions, this paper attempts to fill this demanding gap. The research has found that greater economic integration via higher trade flows, cultural proximity, and political globalization have a significant and negative influence on Malaysian financial institutions’ NIMs. The impacts of personal contacts and information flows seem to work in favour of Malaysian financial institutions. During the period under study, the researchers found that liberalization (restrictions) of the capital account exerts a negative (positive) influence on Malaysian financial institutions’ NIMs. However, the impacts are not uniform across financial institutions of different specializations and ownership structures.
format Article
author Sufian, Fadzlan
author_facet Sufian, Fadzlan
author_sort Sufian, Fadzlan
title Globalization and financial sector's net-interest margins: do specialization and ownership make a difference?
title_short Globalization and financial sector's net-interest margins: do specialization and ownership make a difference?
title_full Globalization and financial sector's net-interest margins: do specialization and ownership make a difference?
title_fullStr Globalization and financial sector's net-interest margins: do specialization and ownership make a difference?
title_full_unstemmed Globalization and financial sector's net-interest margins: do specialization and ownership make a difference?
title_sort globalization and financial sector's net-interest margins: do specialization and ownership make a difference?
publisher Taylor & Francis
publishDate 2012
url http://irep.iium.edu.my/5198/
http://irep.iium.edu.my/5198/
http://irep.iium.edu.my/5198/
http://irep.iium.edu.my/5198/1/SIJ_2011.pdf
first_indexed 2023-09-18T20:13:41Z
last_indexed 2023-09-18T20:13:41Z
_version_ 1777407645571874816

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