Banking Performance and Economic Factors in Malaysia

This assignment examines the relationship between economic factors and banking performance in Malaysia. It presents three hypotheses regarding the impact of various economic indicators on bank performance, followed by a regression analysis to test these hypotheses. The analysis considers factors like interest rates, inflation, and economic growth. Additionally, the assignment explores the influence of banking services on specific economic outcomes in Malaysia.

RESEARCH METHODS

Table of Contents
RESEARCH TITLE.........................................................................................................................4
1) INTRODUCTION.......................................................................................................................4
(1.0) Background....................................................................................................................4
(1.1) Problem statement..........................................................................................................5
Study Gap...............................................................................................................................6
(1.2) Research objectives........................................................................................................6
(1.3) Significance of Research...............................................................................................7
Rationale of the research........................................................................................................7
TASK 2 (LITERATURE REVIEW)...............................................................................................8
To determine the significance of economic value in the banking sector..............................8
To ascertain the impact of economic condition on banking sector........................................8
To identify the factor that might affect the working of finance and banking sector..............9
To assess the factors affecting working of finance and banking sector...............................10
Ascertaining the relationship between economic condition and growth..............................11
Influence of inflation and recession on financial and banking sector of Malaysia..............12
Different techniques to measure financial and economic condition of the country.............13
To evaluate relationship between the economic condition and growth of Malayan bank.. .14
TASK 3 (RESEARCH METHODOLOGY).................................................................................14
3.1 Research framework.......................................................................................................14
3.2 Research Hypothesis......................................................................................................14
RESEARCH METHODS..............................................................................................................15
3.3 Research design..............................................................................................................15
(3.3.1) Research philosophy.................................................................................................15
(3.3.2) Research Approach...................................................................................................17
(3.3.3) Research Strategy.....................................................................................................18
(3.3.4) Research choice........................................................................................................20
3.3.5 Type of investigation...................................................................................................20
(3.3.6) Time Horizons..........................................................................................................21
(3.3.7) Data collection..........................................................................................................21
(3.3.7) Data analysis techniques...........................................................................................21

3.4 Research Ethics..............................................................................................................22
3.5 Research plan..................................................................................................................22
TASK 4..........................................................................................................................................22
4.1 Introduction....................................................................................................................22
4.2 Descriptive Statistics......................................................................................................23
4.3 Response rate..................................................................................................................24
4.4 Descriptive Analysis.......................................................................................................27
4.5 Reliability Analysis........................................................................................................28
4.6 Correlation Analysis.......................................................................................................28
4.8 Discussion and findings..................................................................................................33
4.9 Conclusion......................................................................................................................34
TASK 5..........................................................................................................................................34
5.1 Introduction....................................................................................................................34
5.2 Managerial Implications.................................................................................................34
5.3 Limitations of the research.............................................................................................34
5.4 Suggestions for future research......................................................................................35
5.5 Correlation analysis........................................................................................................35
REFERENCE.................................................................................................................................36
APPENDIX 1...................................................................................................................................1
Questionnaire..........................................................................................................................1
APPENDIX 2.................................................................................................................................12

RESEARCH TITLE
“To analyse the impact of economic condition on growth of finance and banking sector of Malaysia: A case study on Malayan Bank.”
1) INTRODUCTION
(1.0) Background
Malayan bank is public sector organisation of Malaysia which provides securities on deposited fund and financial aid through
loan and advances to public globally. It is wide spread, and trust worthy entity in all over the world whose revenue is RM21.24 billion
in 2015. However, there are so many evolutions identified in its banking system that win maximum satisfaction from public and
reliability on its operations. In this regard, there is around 45000 bankers perform job across country as well internationally also
remains able to increasing in financial services through net banking, mobile banking etc. Including this, management system of
Malayan bank is quite easy and understanding that provide effective comfort ability with its facilities as well social welfare. Along
with this, it uses CSR implementations for customer dealing and enhancing market value by setting interest rates on loan facilities in
accordance to people's standard and their social lives. Therefore, in present time, this bank is providing financial services on large
scale to a million customers over the globe. In addition to this, there are very huge importance of the banking sector in the world by
which customer and society can get their financial transaction. Economic condition of the country can directly impact the growth of
finance and banking sector in the Malaysia.
In the present research study, the scholar have major aim is to analyse the impact of economic condition on the growth of
finance and banking sector of Malaysia with respect of the Malayan bank. Economic condition of the country direct affect every
sectors like finance, bank, retail, hospitality etc. If country have effective economic condition then it because easy to grow the
business enterprise. On the other hand, if within the country there is ineffective economic condition then it becomes difficult to
survive the business. In the context of banking and finance sector, economic condition of the country plays a very crucial role in its
growth and progress. If country have well condition of economy then it becomes easy to improve banking performance. On the other
hand if country's economic condition is weak then banking sector directly influence. Thus, in the present research study investigator

have used various methods of the research methodology by which they can obtain an appropriate solution of the research issue. In
addition to this, in this research study, scholar have focused on the literature review under which various themes has prepared related
to the topic. Moreover, several recommendations are justified for effective financial and banking services in wide range. Besides this,
different research methods and variables are introduced for financial development and analysing organisation's role in country's
effectiveness is introduced. The major objective of this research study is to understand the importance of economic value in the
growth and development of banking sector. With help of this study, scholar can bale to understand the various factor which affect the
banking activities ad functions in the country.
Malayan bank is a public-sector organization which is functioning in Malaysia since June 1996. Its main objective is to provide
quality banking services to its customers. Flexible assistance is provided based upon financial needs of the client. Loan assistance and
financial aiding is another core objective of Malayan Bank in Malaysia (Impact of a banking crisis, 2017).
The present research has aim to analyse the impact of economic condition on growth of finance and banking sector of Malaysia
by making a comprehensive assessment of Malayan Bank. There is a significant and direct impact of prevailing economic conditions
of the country on banking and financial sector. Thereby, the research will help in understanding various aspects of economy so that
appropriate solution can be attained to the issue specified in research aim.
(1.1) Problem statement
In the environment, economic factor is one of the component which can change very frequent basis. In this component
includes financial condition of the country, interest rate, inflation, recession etc. The major issue in this present research study is
related to changing economic condition of the country which directly affect the growth and progress of the banking and finance sector.
In addition to this, there are also several issues in the economic condition of Malaysia like regular changes in government policies for
reserving fund as well securities and setting interest rates, Issues in increasing in NPA affects revenue and profitability of Malayan
bank for further operations. Another major issue related to the Cut throat competition and potential to contribute in nation's economic
growth. Thus, it can be said that there are several issue related to the growth and progress of banking sector due to the economic

condition of the country. Due to changes in government policies as rates in CRR, SLR, repo and reverse repo rate affect interest rates
and market structure for providing banking sector. Thus, it can be said that progress and growth of the banking sector is directly
related to the economic condition of the country. Thus, in order to understand the various issue of the banking sector and impact of the
economic condition on the growth of banking, scholar has used various methods of the research methodology. As per the research it
has been founded that in the 2015 the population of the Malaysia is 31.2 and it increased in 2016 by 31.7.The rate of GDP was in 2015
was 298 and it has increased 300 in the 2016.Thus, from this data it can be said that economy of Malaysia is continuously changed
and its directly impact on the banking sector. It fiscal balance and public debt has also increased by 3.1 to 3.5 in the 2016.
Study Gap
In the present study, the major aim is to analyse the impact of economic condition on the growth of finance and banking sector in the
Malaysia. In the previous study, only impact of the economic condition on the banking sector growth has addressed while in the new
terms, scholar have used various methods of the research methodology for obtain an appropriate solution of the research problem. In
the previous study there is not accurate statistical data about the economic condition of the Malaysia. The major reason for conduct
this investigation is to analyse the impact of economic condition of the banking sector in the Malaysia.
(1.2) Research objectives
In the present study, scholar have main aim is to analyse the impact of economic condition on the growth of the finance and
banking sector of Malaysia with respect of Malayan bank. In order to attain this aim, scholar required to attain various objectives
which are as follows-
 To analyse the importance of economy in the banking sector
 To identify the factor which affect the economic condition in the Malaysia
 To evaluate relationship between economic conditions and growth of Malayan Bank

(1.3) Significance of Research
In the present study, the major aim is to analyse the impact of economic condition on the growth of finance and banking sector
in the Malaysia. In order to attain this aim, scholar have to address various objectives such as determine significance of economic
value in baking sector, identify components which affect working of finance and banking sector in the Malaysia and evaluate the
relationship between the economic condition and growth of the Malaysia. However, various issues obtained for finance and banking
services evolving credit risk, market instability, economic slowdown etc (Fiegen, 2010). In addition to this, the report is able to
explain research frame including hypothesis for further operations. In addition to this, tools for conducting research and collecting data
are understood for analysing actual position of banking system and its management critically. Along with this, collected data is
presented and determined by using statistical tools such as reliability and normative tests proceed to prepare strategy for further
operations and enhancing economic position of bank systematically. Thus, it can be said that the present research study provide detail
understanding about the various issue in the banking sector and impact of economic condition on the banking sector. This report
provides effective understanding about the significance of economic value in the banking sector. With help of this study, stakeholder
of the company can also able to identify the beneficial point from the country economy. The decision maker can also beneficial by this
investigation because they able to know that how they should take the decision by analysing the economic condition of the country.
With help of this investigation, decision maker can able to take decision about investment in the company. With help of this study,
researcher can easily analyse the relationship between the banking sector and economic condition. They can understand that how
economic condition affect the banking function and activities.
Rationale of the research
It is important that the research that is going to be conducted by the researcher holds some relevance. Every study must have the
potential to serve some specific purpose. The study aims at analysing the impact of economic condition on growth of finance and
banking sector of Malaysia. The research has helped the scholar to gather knowledge regarding the subject matter. Since, the

researcher does not hold adequate amount of knowledge regarding various economic conditions prevailing in the banking and finance
sector of Malaysia. The research will help in gathering that information.
TASK 2 (LITERATURE REVIEW)
To determine the significance of economic value in the banking sector
As per the view of Gale and et.al., (2013) in the business environment, there are various components consist with it. Each
factor plays a very crucial role in improving and growing the business enterprise. In this manner, economic factor is one of the
component which affect directly and indirectly affect business firm. Economic factor consist with various things like inflation,
recession, interest rate, pricing policies etc. Economic growth is one of the ultimate goal of any economic system. Country's economic
condition plays a very crucial role as by which every sector like hospitality, banking, travel and tourism affected. If country's
economic condition is good and effective then it directly positively affect the progress and growth of the business sector. On the other
hand if country's economic condition is ineffective then it will negatively affect the growth and progress of the business sector. In the
opinion of (Andrews and Hampel, (2015) in the context of bank, economic value plays a very crucial role because while country have
effective economic condition then bank performance can automatically improve. Financial recession and inflation can direct affect the
growth of bank. There is a huge importance of the economy in the banking sector because the growth and development of bank is
largely depends upon the country's economic condition. If the economic condition of the country is good then public can more invest
and involve in the banking services. Economic condition reflects the entire progress, inflation, recession of the country.
To ascertain the impact of economic condition on banking sector
According to Usman and Khan (2012), prevailing economic factors play vital role in growth and development of banking sector.
There is a direct relationship between the two. An increase in economy will also increase and develop banking sector of a country.
There are higher chances of large amount of Non-Performing Assets (NPA) due to deteriorating economic condition of the country. It
shows that there is less amount of cash in the hands of businesses which thereby increases the chances of defaulters from the people
who have taken loan from the bank. Further, it also becomes difficult for the bank to maintain inflow and outflow of cash within the

organization. However, in contrast to this, as per the views of Joshi and et.al. (2013), a bank tends to generate income by lending
money at a higher rate of interest from the one which is provided by it on deposits. A severe and prolonged bad economic condition
leads to high rates in bankruptcy higher NPA results in less profits to the organization. The economic condition of the country exerts
strong pressure on risk and profitability of the bank. The main element of any bank in to operate with different strategies and keep on
adapting the change that is occurring in the economy. Otherwise, the survival of bank becomes difficult in the market. It also reduces
the risk of failure in the market and also helps in increasing the profitability. Failure of bank then reduces credit availability in the
market which leads the market to less profitable then before.
According to Panneerselvam (2014), prevailing economic conditions of the country can upgrade or degrade present banking
sector in the economy. The core functions of the banks can be divided in primary and secondary. Primary functions of the bank
include, accepting deposits and granting loans. However, secondary functions of the banks are, agency and utility functions such as,
fund transfer, periodic collection and payments, collection and deposition of cheques, managing portfolios. Certain facilities are also
provided to the people in the form of locker, underwriting, drafts etc. To serve these functions properly, a bank must be able to
manage its credit and liquidity risk properly. Any change in the economic functions can reduce or increase the loan advancing power
of people in the market. Moreover, change in the power can directly impact paying off capabilities of the people who have taken loan
from the bank. However, in contrast to this, asper the views of Sufian and Habibullah (2012) a healthy economic condition in the
country helps in adequately delivering its functions to the people and attaining the profit objectives as well. It is important for the bank
to measure their risk appropriately so that the harm from the same can be reduced to minimum. Further, dynamic economy can will
not be able to affect the profitability of the bank.
To identify the factor that might affect the working of finance and banking sector
According to the view of Speight and et.al., (2016) inflation rate is one of the factor which affect the bank working and its
performance. This affect the value of currency and this can huge affect the banking sector. In addition to this, liquidity structure and
processes inflation causes instability in currencies. On the contradicting view O'Leary, (2013) stated that exchange rate across the

world also largely affect the banks all over the globe. While the rate of exchange for the currencies decrease then banking sector may
face the major problem in its working. In the opinion of Ricciardi and et,al,, (2015) stated that income of the country and its economic
level can also affect the banking sector. Income flow in a country affect banks in terms of the amount of capital. In the opinion of
Huang and et.al., (2013) laws and regulation of the country can also affect the working and performance of the bank. In every country
there are various rules, regulation, code of conduct, legislation which follow the bank in order to process its activities and functions. In
order to survive the banking function, bank have to follow all legislation, regulation and code of conduct. While government change
any policies, practices, code of conduct and legislation then it directly affects the banking process. Thus, it can be said that
governmental rules, regulation, legislation is one of the major factor which affect the working of finance and banking sector. The
income of the country and its economic level always affect the banking sector. Income flows in a country affect banks in terms of the
amount of capital they can access and customer that are ready to bank with them. In addition to this, economic policies,
macroeconomic policies can have far reaching influence on the banking sector. While in the country there may develop unfavourable
policies then the banking sector is bound to lose on the other hand while in the country there may effective macroeconomic policies
then country's bank can able to grow. Thus, from the entire discussion it can be said that there are various kinds of the components
which can affect the growth and development of banking sector. These factor includes inflation rate, economic policies, exchange
rates, law and regulation. Income of the country etc.
To assess the factors affecting working of finance and banking sector
According to Sufian and Shah Habibullah (2013), there are various internal and external factors that can directly impact working
of finance and banking sector. Some of the internal factors include, earnings and reserve of the bank that has been gathered by the
bank or any other financial institution. It helps in coping up with the working capital requirement of the entity which further assist in
its smooth functioning. Other internal factor that has direct impact is the interest rates that has been decided by the bank so as to
extend loan to the customers. However, the important external factors that affect the functioning of financial institutions and banks are
as follows;

 Income of the country and it economic level: Fluctuating income level of the country can have direct impact on the
functioning of banking sector and financial institutions. It is considered as one of the most important sector of the economy
and hence a regulation on it from the side of government is important for smooth functioning.
 Inflation rates: A high rate of inflation is the duration when the banks suffer the most. The reason is that it has significant
impact on the value of currency of the country and hence affect banking sector. Instability in the currency causes liquidity
issues. The confidence of client is affected specially the foreign investors who are liable to assess the requirement of
particular currency.
 Economic policies: There are certain economic policies that can affect the environment of the bank. Further, it also has
significant impact on growth of the bank as well. However, there are certain policies that can also promote growth in the
banks as well.
 Exchange rates in the world: Prevailing interest rates in the world can also affect the functioning of the banks. Effect of
some strong currencies such as, US Dollar, Japanese Yen, European Euro, British Pound and Canadian Dollar, have direct
impact on the currency exchange rate of all around the world which certainly affect banks functioning. A drop in these
currency increases the problems for banking sector.
 Laws and regulatory framework: Each country designs its own regulations and policies for banks and financial institutions
in order to guide, supervise and monitor their roles. It plays an important role in taking key decisions such as, interest rates,
banking services, rules for loans and even the small aspects of working hours of banking sector. A change in regulatory
framework of the country can also affect profits of bank.
However, in contrast to this, as per the views of Husna and Rahman (2012), it is important for the companies to have risk
assessment and management plan so that as and when the risks arise in the market, plan of action can be implemented on the banks
and financial institutions.

Ascertaining the relationship between economic condition and growth
According to Ariffin (2012), economic growth refers to outward shift in Production Possibility Curve (PPC) which is considered
as an alternative way to define the output being gathered from the country in the form of Gross Domestic Product (GDP). It also helps
in increasing the production of the country as well. Higher the GDP of the country, higher will be the growth. It has direct impact on
different sectors of the country as well such as, financial aspects, foreign direct investment etc. A major turn is taken by financial
institutions and banks. The relationship between the two terms, that is, economic development and economic growth is positive.
However, economic growth is a narrow concept in comparison to that of economic development. It helps in increasing the real level
output of the country by offering quality resources to the citizens of the nation. The common method of measuring the growth is with
the help of GDP. In case of economic growth, it is a inflation adjusted market value of goods and services being offered to the market.
However, in contrast to this, as per the views of Usman and Khan (2012), Banks have direct impact of economic growth and
development of the country. A significant amount of increase of decrease in demand of loan has been noticed which reduces the
profitability of the banks. Further, decrease in purchasing power of the people in Malaysia can also reduce the affect growth of
banking sector in the economy.
According to Kyzy, Thim and Choong (2012), the principal objectives of banks and financial institution functioning in Malaysia
is to promote financial and monetary stability in the market so that Malaysian economy can experience sustainable growth. A
significant role is played by banks to instigate progress and growth in financial sector of the nation. It helps in preserving core
foundation of the country and has immediate contribution towards growth and development. Inclusive and sustainable growth in this
sector can be initiated only if the policies of this sector are constantly changes as per the changing economic conditions of the world.
The performance of the bank is important to be improved otherwise it can have direct impact on the overall growth of the economy.
However, in contrast to this, as per the views of Cooray (2012), an ineffective economy can have negative influences on the outcome
of the country and its sectors. The majorly affected sector in this case is finance and it is important to have adequate amount of
policies with this regard in the bank and from the side of government as well.

Influence of inflation and recession on financial and banking sector of Malaysia
According to Laeven and Valencia (2013), a sustained increase in the price levels of goods and services which consequently
decrease the purchasing power of the customers. The attempt of central bank is to limit inflation so that the economy can be run
smoothly. Some of the common impact of inflation which directly affects banking and financial sector of the country are as follows:
 Decreases purchasing power: The first and foremost impact of inflation is that it decreases the purchasing power of
currency. It results in rise in the prices in the economy. It is important for the banks to effectively divide their resources at
this duration. However, there is an inverse relationship. A rise in inflation results have reduced impact on lending activities
of the bank.
 Causes more inflation: People find this time to decline their investment and spending which causes more inflation in the
market. People tend to hold their money for future. It leads to depreciation in the currency. In other words, the supply of
money exceeds the demand in the market for cash. It leads to falling of purchasing power of currency at faster pace than
usual.
 Rise in cost of borrowing: The cost of borrowing gets increased as the interest rates are elevated by the central bank with the
aim to control inflation in the financial market. An inflation rate is chosen and policies are framed to maintain that target. To
serve this purpose, central bank keeps increasing or decreasing the interest rate so as to reduce the level of money in the
market.
However, in contrast to this, as per the views of Joshi and et.al. (2013), banks are one of the major institution that can help in
reduction of inflation and recession at the market place. Deciding interest rates can help in controlling inflation or recession
position in the market. Assessment and control of money supply is the major influencing factor of level of money at the market
place.

Different techniques to measure financial and economic condition of the country
According to Allen, Bali and Tang (2012), it is important for the country to measure its financial and economic growth time to
time. It helps in making appropriate policies for the company which can further help the nation to grow. The economists use several
methods to track economic growth. The most common metric that is used to perform this function in Gross Domestic Product (GDP)
of the country. It helps in measuring the growth with the help of monetary expenditure. GDP in the combination of outputs from all
the industries and based on which total production is received. Higher the GDP of the country, higher will be the growth as well. In
other words, economic growth is required to measure the relationship between total input of resources and total economic output. Per
capita income is another factor that is used by the economists of the country where average income earned per person is calculated.
Higher the income better it will be for the economy and its growth. However, in contrast to this, as per the views of Dembiermont,
Drehmann and Muksakunratana (2013), Interest rates offered by the banks on loan and deposit is another important factor to measure
the financial and economic condition of the country. It helps in assessing the condition of inflation and recession as well. This measure
also helps in identifying the risk and involve in decision making at a very initial phase of risk. Moreover, it is important to make an
assessment of personal disposable income of people in the country. It helps in ascertaining that how much income is present in the
hands of people to spend which ultimately determines the type of lifestyle being led by people in the country.
To evaluate relationship between the economic condition and growth of Malayan bank
In the opinion of Landt and Melville, (2013) while the economic condition strong in the country then it directly positivity
affect the performance and working of the bank. In the economic condition, various terms are included such as recession, inflation,
interest rate etc. while inflation is high then bank tends to suffer. While economic condition of the country is well and effective then
automatically bank performance can improve. There is a direct relationship between the economic condition and growth of the bank.
If country's economic condition is good then bank will positively influence. On the other hand if economic condition is ineffective
then banking functions and activities will negatively influence.

TASK 3 (RESEARCH METHODOLOGY)
3.1 Research framework
Dependent variables: Growth of the finance and baking sector
Independent variable: Economic condition
3.2 Research Hypothesis
 Null Hypothesis
 Alternative Hypothesis
Two types of hypothesis will be used, that are, Null and Alternative. Hence, both will be framed inn conducting the present
research (Panneerselvam, 2014).
RESEARCH METHODS
3.3 Research design
For conducting research and framing structure, several designs are used like; descriptive, experimental and correlation.
However, all these designs and structures can express as:
Descriptive design: In this approach, both positive and negative factors are involved in data collection that generates varieties of ideas
for further business operations and enhancing its efficiency
Experimental design: This research design is appropriate for fact findings and research on searched things. In this regard, with help
of this method, analyse the impact of economic condition on the growth of banking sector can easily address.
Correction: In this research approach, relation between two or more variables is created through which further strategies are prepared.
For instance, in order to identify the relationship between economic condition and growth of the banking sector (Flick, 2011). Hence,
research is created for determining facts and approval over experimental things for further operations.

There are commonly three types of research design, these are, descriptive, experimental and correlation. In the present research,
where analysis is required to be done on impact of economic condition on the growth of banking sector in the Malaysia, descriptive
research design has been used. It will help in generating varied ideas for operations of the business and enhancement of efficiency
(Smith, 2015).
In the present study, in order to analyse the impact of economic condition on the growth of banking sector in the Malaysia,
descriptive approach can applied by the investigator. In this regard, a systematic structure is to be presented that involves the
economic impact in the banking sector and solution for solving it in an impressive manner.
(3.3.1) Research philosophy
There are different kinds of philosophy used for collecting data as; pragmatism, positivism, realism and interpretivism. All of
these approaches can be described as below:
 In the context of positivism approach, scholar required to design a systematic questionnaire related to the existing condition
and services of the bank and conduct survey for identify the condition and services of Malayan bank. In this manner,
researcher has conducted survey of bank professionals in the Malayan bank
 In pragmatism approach, information are gathered in both manner as qualitative and quantitative. However, mixture of data is
gained which shows Malayan bank financial condition and its effectiveness (McMillan and Schumacher, 2014 ).
 In the context of realistic approach, scholar uses a particular technique for data either qualitative or quantitative. With help of
this technique, existing position and condition of the bank can easily analyse and make the decision for further improvement.
 In the context of interpretivism data collection tool, data are collected for detecting issues and evaluating solutions for
reducing them.

In the present study, scholar has used interpritivism approach for analyse the impact of economic condition of the country on the
growth and performance of Malayan bank. With hep of this research, scholar can able to identify various strategies for overcome the
negative impact of the economy on the organisation and improve economic position of the bank.
There are different types of research philosophy. These are, pragmatism, positivism, realism and interpretivism. Positivism
approach helps in systematic design of questionnaire based upon the current prevailing condition of banks in Malaysia so that
identification of condition of Malayan bank can be made. Pragmatic approach helps in collection of information in both quantitative
and qualitative manner. Interpretivism approach helps in collection of data after detecting issues in it and evaluating solutions so that
the issues can be reduced to minimum (Flick, 2015).
In the present study, interpretivism approach has been used to conduct the research in order to analyse the economic condition
of Malayan Bank. The research philosophy has played vital role in identification of strategies that can help in improving the negative
impact of the economy which thereby will help in improving the economic position of the bank as well.
(3.3.2) Research Approach
Research approach are the plans and procedures for the research, which contains ways by which broad and developed methods
of detailed data collection then investigation and after that interpretation in an organisation (Landt and Melville, 2013). Basically there
are two Inductive and Deductive approaches to the research:-
Inductive Deductive
 Its objective is to generate new theory
from the collected data.
 It is aimed in the testing of the theory.
 It generally contains the research on the
qualitative basis.
 The importance of this is basically with
hypothesis and causalities.
 It is frequently referred in research  The aim is to provide new and

literature, its necessary that report
begins with open mid without having
any preconceived ideas.
innovative ideas, with proper study of
previous researched forms and having
wide range of perspective.
In the present research study, scholar has used inductive approach for conduct survey with bank professional in order to analyse the
impact of economic condition on the growth of Malayan bank in Malaysia.
Research approach is a plan of how the study is doing to be conducted by the researcher. Two types of research approaches are
commonly used in conducting the study. These are inductive and deductive research approach. The main aim of inductive research is
to generate a new theory for the data collected by the researcher, However, in case of deductive approach, already existing theory is
tested through various research tools and techniques (Silverman, 2016).
In the present research of economic condition of Malayan bank, scholar has used inductive approach of research where a new
theory will be developed by collecting first hand data of the research.
(3.3.3) Research Strategy
In the present study, systematic planning procedure is to be followed in related to analyse the impact of economic condition on
the growth of Malayan bank. Thus, research strategy from setting goals to accomplishing tasks can be understood as:
S. NO. Strategy (plan) Activity
1 Introduction and goal setting In the present research study, introduction and
background of the study is to analyse the impact of
economic condition on the growth of Malayan bank in
the Malaysia. The major aim of this investigation is to

analyse the impact of economic condition on the
growth of finance and bank in sector in the Malaysia.
2 Research strategy After designing the goal, it is very important to frame
the strategy. Strategies including planning and steps to
be followed are proceeded for task accomplishment
systematically (Taylor, Bogdan and DeVault, 2015).
3 Research design In this process, a structure is framed used for research
as in descriptive form for bank. It also includes all
team workers' segmented work for Malayan bank.
4 Participants Bank professionals is going to taking participants in
the survey.
5 Sampling procedure In order to analyse the growth and services of the
Malayan bank, scholar has selected bank professional
for survey so as information can collected.
6 Data collection All information is collected for analyse the impact of
economic condition on the growth of bank in the
Malaysia.
7 Data analysis In this stage, scholar analyse the collected data by
survey of various statistical tools as reliability test and

normative test.
8 Validity and reliability In this stage, justification on the collect information
has generated for further operation and growth in the
Malayan bank in the Malaysia (Gay, Mills and
Airasian, 2011).
9 Conclusion and reporting In the last stage, proper outcome has obtained with
help of collected data. In the collected data, various
views, opinion and thoughts are gathered.
(3.3.4) Research choice
In order to collect information, there are major two method that is primary and secondary data collection. These methods are as
follows- Primary data collection- In this method, scholar can collect the information from the survey, interview, questionnaire etc. In
the context of Malayan bank, scholar collect information from bank professionals.
 Secondary data collection- In this method, scholar collect information from the secondary sources such as books, journal,
newspaper, online websites etc.
In the present study, scholar conduct the survey of 50 bank professionals of the Malayan bank for identify the impact of economic
condition on the growth and performance of bank. For this purpose, scholar prepared a systematic questionnaire along with various
questions related to the growth and performance of bank.

3.3.5 Type of investigation
There are basically two types of investigation. The information can be gathered through primary sources and secondary source.
Primary sources of data collection are the first hand where data is gathered for a specific research in order to serve its purpose.
However, secondary data is a type od collection method where already published sources are used to gather the information.
Since, both sources hold certain importance, in the present research, both primary and secondary sources of data collection will
be used to gathered data. Primary data will be collected from bank professionals of Malayan bank and secondary data will be collected
from books, journals, research paper, blogs, online sources etc.
Research questions:
 What is the significance of economic value in the banking sector?
 What are the factors which affect the working of finance and banking sector of Malaysia?
 What is the relationship between the economic condition and growth of Malayan bank?
 Does the inflation and recession can influence on the financial and banking sector in the Malaysia?
 What are the different techniques and criteria by which financial and economic condition of the country can measure?
 What is the different strategies which helps in improving the negative impact about the components in banking sector in the
Malaysia?
(3.3.6) Time Horizons
Overall research project is planned for about 1-2 months including it is all processes and activities. In this regard, it is analysed
that for conducting survey, 2 weeks is to be framed on the basis of which strategies are prepared for further implementations. Further,
all action plans are to convert into implementation that can take 3-4 weeks through segmenting work among bankers to reduce risks
and improving its facilities.

(3.3.7) Data collection
Both primary and secondary sources of data collection have been used to gather information (Mackey and Gass, 2015). The aim
of present research is to analyse the impact of economic condition on growth of finance and banking sector of Malaysia. Therefore,
the data for primary source will be collected from 10 bank professionals of Malayan Bank so that the economic impact can be
identified in well-defined manner. In order to serve this purpose, a systematic questionnaire has been prepared along with different
types of questions which are directly related to performance and growth of the bank.
In order to collect the data about the growth and performance of Malayan bank in the Malaysia, scholar has conducted survey for 10
bank professionals. Thus, sample size is 10 bankers.
(3.3.7) Data analysis techniques
There are commonly two types of data analysis practice. These are qualitative type and quantitative type. Qualitative techniques
help in getting in depth knowledge and information regarding the subject matter. However, quantitative technique uses statistical tool
in order to analyse the data. In the present research, quantitative technique has been used where SPPS tool will be used to get the
results. The two types of test that has been performed are: Reliability test- This statistical test is to evaluate reliability of collected data as well proper justification on research is
determined through this tool (Creswell, 2013).
 Normality test- It is hypothetical data testing remains suitable for computing test on random variable.
3.4 Research Ethics
In this following research, scholar has consider following ethics-
 All data and information should valid and authentic. In this manner, social networking site use should strictly prohibit.
 Scholar should not pressurise or force someone for collecting information.

3.5 Research plan
TASK 4
4.1 Introduction
The task will help in analysing the data that has been extracted from SPSS software. Descriptive statistics data will be calculated
to ascertain the mean and standard deviation for the provided data. Further, Cron Bach Alpha test will be applied on the data set to
assess the reliability of data. Further, appropriate analysis to the results gathered will also be conducted so as to make an assessment
and reach to a conclusive statement. Moreover, regression test will be applied on the framed hypothesis to assess the satisfaction level
of null hypothesis and alternate hypothesis.
4.2 Descriptive Statistics
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Do you agree that Global
economic environment has
significant impact on your
bank?
50 1 5 1.98 1.116

Is there any direct
relationship between the
economic condition of
country and growth of
banking sector in Malaysia?
50 1 3 1.66 .717
Which sector affected at
most due to economic
instability of Malaysia other
than banking sector?
50 1 4 2.20 1.107
How does bank help to
government in nation's
financial systems?
50 1 3 1.62 .667
What are secondary
functions of bank? 50 1 3 1.72 .730
Does bank play vital role in
stakeholder value creation? 50 1 3 1.64 .663
How is bank's impact on
capital market? 50 1 3 1.62 .697
What is impact on GDP of
the country in contribution of
bank?
50 1 3 1.66 .823
How banking sector get
influence with respect to
economic stability?
50 1 3 1.68 .794
Do you know the meaning
and concept of the economic
value?
50 1 3 1.62 .697
Valid N (listwise) 50

Based upon the discussion that ahs been made in the methodology section, the employees are the one who have been selected
frommedium sized manufacturing enterprises which are located in Selangor. The demographic profile of these respondents have been
discussed below:
Group Statistics
Gender N Mean Std. Deviation Std. Error Mean
1. Which of the following
economic factor can
influence the banking
performance in large manner
in the Malaysia?
Male 28 2.32 .983 .186
Female 22 1.86 1.167 .249
It can be analyzed that the mean is quite similar for both male and females. It shows that there is no difference in th answer
being given by the people on the grounds of gender.
4.3 Response rate
Which sector affected at most due to economic instability of Malaysia other than banking
sector?
Frequency Percent Valid Percent Cumulative
Percent
Valid Business and marketing 18 36.0 36.0 36.0
Production and operation
system 12 24.0 24.0 60.0
Employment 12 24.0 24.0 84.0

Technological 8 16.0 16.0 100.0
Total 50 100.0 100.0
From the above table, it can be assessed that, Business and marketing have strongest influence of economic instability in
Malaysia other than banking sector. Further, the other response that has been adopted by most of the respondents is for 3 rd and 4th
option, that is, production and operations and employment. It can be assessed that these factors will face a downturn due to economic
instability in Malaysia.
How bank is significant for public welfare in terms of financial services?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Saving through deposit 15 30.0 30.0 30.0
Granting loan facilities 13 26.0 26.0 56.0
Credit facilities 12 24.0 24.0 80.0
Advises on financial system 10 20.0 20.0 100.0
Total 50 100.0 100.0
The response rate is higher for savings through deposits. It shows that it is the significant role that is played by the banks in
Malaysia. Further, 13 respondents think that grant loan facilities is the other role played by the bank for welfare in terms of financial
services.
What are primary functions of a bank?
Frequency Percent Valid Percent Cumulative
Percent
Valid Saving public funds 25 50.0 50.0 50.0

Granting loans 23 46.0 46.0 96.0
Both 2 4.0 4.0 100.0
Total 50 100.0 100.0
25 out of 50 people think that the primary function of the bank is to save public funds. However, 46% of the respondents
thinks that granting loan is their primary function. In this scenario, the response rate to first option is higher out of the three that were
made available to the respondents.
. Is bank measures performance of country's economic position?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 24 48.0 48.0 48.0
No 26 52.0 52.0 100.0
Total 50 100.0 100.0
It can be interpreted from the above table, as per the views of 26 respondents, bank is not the only indicator available that can
measure performance of the country’s economic position. In that case, 52% of the bank manager believes that same. However, as per
the views of other 48% respondents, bank is a significant measure that can help in measuring the economic position of the country.
41. How is bank's impact on capital market?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Positive 25 50.0 50.0 50.0
Neutral 19 38.0 38.0 88.0
Negative 6 12.0 12.0 100.0
Total 50 100.0 100.0

Based on the above table, it can be interpreted that, as per the responses of 25 people, there is a positive impact of bank on
capital market. However, 38% of the respondents have neutral opinion regarding this question. In the end, 12% of the people think
that there is a negative impact of bank on capital market.
4.4 Descriptive Analysis
Descriptive statistics helps in understanding the basic feature of the study (Farberg and and et.al, 2017). In the present study of
banking sector, descriptive statistics has helped to calculate the value of mean and standard deviation. Mean is the average value that
has been determined from the responses being given by the respondents. From the first question in the above-mentioned table, “Do
you agree that Global economic environment has economic impact on your bank?”, the mean value determined is 1.98. There were
five options to the question. Mean value indicates that option has been opted by most of the respondents. It means that most people
agree to the statement and believes that there is a significant impact of global economic environment on bank. Similarly, for the
question, ” Which sector affected at most due to economic instability of Malaysia other than banking sector?”, the calculated mean
value is 2.20. It shows maximum respondents have been able to give 2nd the most opted option. It shows that that managers in the bank
thinks that the most impact is assessed by production and operation system rather than any other sector (Wilson, 2017). It is due to
high input required in production system of an organization rather than any other aspect. The standard deviation for the same is 1.107
which is on higher side in comparison to the other factors. In that case, the value of standard deviation is quite far from the mean
value. Hence, the values are spread at higher range.
Descriptive analysis performed on the answer being given by male and female has also been analysed in the second table of
descriptive analysis. The question chosen for analysing the gender decision is “Which of the following economic factor can influence
the banking performance in large manner in the Malaysia?” It helps in analysing that there are 28 males and 22 females. The mean for
males is 2.32 and that of female is 1.86. Further, standard deviation for males is 0.983 and that of female is 1.167. There are higher
chances of standard error mean in case of females that is 0.249 and that of male is 0.186.

4.5 Reliability Analysis
Reliability Statistics
Cronbach's
Alpha
N of Items
.495 50
Cron Bach Alpha is the most common test performed to assess the consistency and reliability of the data set ( Williamson and
Johanson, 2017). The value of actual Cron Bach Alpha is 0.495. It shows that the actual value is slightly higher than the standardized
one. In that case, it indicates, high level of internal inconsistency in the data set.
4.6 Correlation Analysis
Correlations
48. On which of the
following factors,
bank requires
consideration for
effective banking
system?
. Which of the
following influence
is determined in
Malaysia at most
by taking
advantage of
banking services?
What is position
of banking
sector in
Malaysia in
comparison to
previous years?
1. Which of the
following economic
factor can influence
the banking
performance in large
manner in the
Malaysia?
1. Do you
agree that negative
economic condition
can negatively
influence the
growth of finance
and banking sector
of Malaysia?
1. Is there any
direct relationship
between the
economic condition
of country and
growth of banking
sector in Malaysia?
48. On which of the
following factors,
bank requires
consideration for
Pearson
Correlation 1 .146 .058 -.009 -.077 .028
Sig. (2-
tailed)
.311 .689 .949 .594 .846

effective banking N 50 50 50 50 50 50
. Which of the
following influence is
determined in
Malaysia at most by
taking advantage of
banking services?
Pearson
Correlation .146 1 .191 -.107 .102 .063
Sig. (2-
tailed) .311 .183 .458 .483 .662
N 50 50 50 50 50 50
What is position of
banking sector in
Malaysia in
comparison to
previous years?
Pearson
Correlation .058 .191 1 .008 -.139 -.019
Sig. (2-
tailed) .689 .183 .958 .337 .897
N 50 50 50 50 50 50
4.7 Regression Analysis
The hypothesis can be drawn in the following manner:
To achieve first objective
H0 = There is no influence of interest rates and technological development on profitability of banking sector
H1 = There is significant influence of interest rates and technological development on profitability of banking sector
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .194a .038 -.003 .698
ANOVAa

Model Sum of Squares df Mean Square F Sig.
Regression .894 2 .447 .918 .406b
Residual 22.886 47 .487
Total 23.780 49
Dependent Variable in the above hypothesis is profitability of the banking sectors. However, independent variable is interest rates and
technological development. The significance value received from the applied test is 0.406. in this scenario, the alternative hypothesis will be
accepted. It interprets that there is a significant influence of interest rates and technological development on profitability of the bank.
To achieve second objective
H0 = There is a no impact of economic factors on economic condition of Maybank
H1 = There is a significant impact of economic factors on economic condition of Maybank
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .138a .019 -.023 1.324
2 .146b .021 -.042 1.337
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 1.594 2 .797 .455 .637b
Residual 82.406 47 1.753
Total 84.000 49
2 Regression 1.798 3 .599 .335 .800c

Residual 82.202 46 1.787
Total 84.000 49
Dependent variable in the above hypothesis is economic condition of Maybank and independent variable are the economic
factors. Based upon the above table, it can be interpreted that the significance value is 0.637 and 0.800 which is greater than 0.05. In
that scenario, alternative hypothesis will be selected. Hence, it can be interpreted that there is a significant impact of different
economic factors on economic condition of the bank.
To achieve third objective
H0 = There is no relationship between economic conditions and growth of Malayan bank
H1 = There is significant relationship between economic conditions and growth of Malayan bank
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .161a .026 .006 .715
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression .652 1 .652 1.274 .265b
Residual 24.568 48 .512
Total 25.220 49
In the above scenario and hypothesis formulated, dependent variable is growth of Maybank and independent variable is
economic conditions in the country. The significance value received from the same is 0.265 which is more than that of 0.05. In this

scenario, null hypothesis will be rejected and alternative hypothesis will be accepted. Hence, it can be assessed that there is a
significant amount of relationship between economic conditions and growth of Maybank.
4.8 Discussion and findings
The research has been analysed in quantifiable format where various test such as, Cron bach Alpha, regression and correlation
test has been applied on the formed data set. In that scenario, Cron bach alpha helped in assessing that data set chosen for the research
is reliable to an extent and hence, it can be interpreted that it is valid enough to use this data set to reach to a conclusive statement.
Further, the regre4ssion test performed on the data helped in analysing the three-main aim and helped in assessing that inflation and
technological factors to have adequate amount of role in profitability of the bank. Further, it can be interpreted that any change in
these two factors can significantly change in the profits made by the bank as well. Another significant aspect discussed in the report is
analysis of regression analysis. It has been performed through ANOVA test.
Further, it can be analysed that the value of cron bach Alpha helps in analysing the reliability of the dataset. The value received
for the same is 0.397 which states that there is higher reliability on the chosen data set by the researcher. It is an important test to be
performed on any data set which the aim to check its reliability. The aim of the research is to analyse the impact of economic
condition on growth of finance and banking sector of Malaysia. The test applied on the data set have been very well state fulfil the
requirements.
4.9 Conclusion
It can be concluded from the research that, there is significant influence of interest rates and technological development on
profitability of the bank. Significant impact has been assessed of different economic factors on economic condition of the bank. In the
end, significant amount of relationship between economic conditions and growth of Maybank.

TASK 5
5.1 Introduction
The task will help in concluding the whole research where its impact on managerial implication will be discussed. Further, the
task will aim at discussing scope of future research as well. It will help in ascertaining that what kind of research can further be
conducted by other scholar in extension to the same topic. In the end, the correlation will be analysed to get an overall view of the
research.
5.2 Conclusion to the research hypothesis and research objectives:
Descriptive analysis: Further, analysing the data tables of descriptive research, the mean value to the question, “How banking
sector get influence with respect to economic stability?”, is 1.68. It is near to the option 2. Hence, providing financial services proves
to be the best way to get influenced in case of economic stability. In this case, the standard deviation happened to be 0.794 which
shows that mean is close to standard deviation.
Moreover, another question that was asked from the managers of bank is that “What is the secondary function of the bank?”.
The responses received from the same happened to lean towards, 2nd options as the mean value received from the same is 1.72. It
shows that CSR implementation in the environment. It shows that the banks happen to promote efficient utilization of the activities so
that there is adequate amount of money in the market. It also helps in controlling the situation of inflation and deflation. The standard
deviation for the same aspect is 0.730. It comes under the medium range hence the values received are closer to the mean value.
Descriptive analysis performed on the answer being given by male and female has also been analysed in the second table of
descriptive analysis. The question chosen for analysing the gender decision is “Which of the following economic factor can influence
the banking performance in large manner in the Malaysia?” It helps in analysing that there are 28 males and 22 females. The mean for
males is 2.32 and that of female is 1.86. Further, standard deviation for males is 0.983 and that of female is 1.167. There are higher
chances of standard error mean in case of females that is 0.249 and that of male is 0.186.

The value of mean in case of male is 2.32 and in case of female is 1.86. It shows that most of the people whether male or
female opted form second option of the question, which was economic policies. It shows that gender doe not make any difference in
the answer in the case of this question.
Reliability test: The table of Cron Bach Alpha attached in appendix helps in making an assessment of individual Cron Bach
Alpha value of each question being chosen to apply this test (Bernard, 2017). It can be assessed that deletion of the question, “Is other
sector of country get affected due to changes in interest and income tax rates?” can help the researcher to bring the value under the
standardized limit. Moreover, the value can come under specified limit if the question, “What is the impact of previous years' banking
functions of Maybank because of changes in political environmental factors?” can be deleted from the question bank. It will lead to
slight improvement in the value of Cron Bach Alpha being calculated through SPSS.
The three set of hypotheses are framed to analyse the framed objectives. It assessed that:
 There is a significant influence of interest rates and technological development on profitability of the bank.
 There is a significant impact of different economic factors on economic condition of the bank.
There is a significant amount of relationship between economic conditions and growth of Maybank.
The analysis can be framed from the first outcome that interest rate and technological factors can affect the profitability of the
bank. Hence, bank must frame policies so that the impact can be reduced to the minimum. The second outcome reflects that there are
various economic factors that can affect the economic condition of Maybank. The factors can be in the form of inflation, economic
growth, economic stability etc. the third outcome shows that there is a significant and positive relationship between economic
condition s and growth of Maybank. In this scenario, any change in economic condition will affect the growth of Maybank.
5.2 Managerial Implications
The research can have various managerial implication. Some of them are discussed below:
 Better policies can be framed by the management for the Maybank.

 Higher profitability (Johnston, 2017)
 Better financial statements
 Risk assessment in initial phase so that the best practices can be adopted by the managers for the bank.
5.3 Limitations of the research
The main limitations that have been gathered from the research are as follows:
 It is difficult to generalize the results for whole Malaysia based on 50 respondents of Maybank who are working as a bank
manager over there.
 The point of view of the respondents can fluctuate based upon prevailing time in Malaysia. Hence, reliability on the results is
slightly lower.
 Change in the response of any of the respondents in any question can bring major change in the statistics and output that has
been generated for the research. Deviation in mean value, standard deviation and Cron Bach Alpha value can deviate the
overall results (Guetterman and et.al., 2017).
5.4 Suggestions for future research
An extended version for the present research can be conducted by the other researchers, where there can be rigorous discussion
regarding each and every economic factor than can have significant impact on the functioning of the banks. Further, the research can
also be conducted regarding performance measures of Maybank which can help in making an assessment that how the performance of
a bank can be measured. A change in global market has also been noticed which can also have significant impact on bank’s
functioning (Singh, 2017). In that case, a research can be conducted by the researcher where he can find out the variables affecting the
banks at global platform.
5.5 Correlation analysis
Correlations

48. On which of the
following factors,
bank requires
consideration for
effective banking
system?
. Which of the
following influence
is determined in
Malaysia at most
by taking
advantage of
banking services?
What is position
of banking
sector in
Malaysia in
comparison to
previous years?
1. Which of the
following economic
factor can influence
the banking
performance in
large manner in the
Malaysia?
1. Do you
agree that negative
economic condition
can negatively
influence the
growth of finance
and banking sector
of Malaysia?
1. Is there any
direct relationship
between the
economic condition
of country and
growth of banking
sector in Malaysia?
48. On which of the
following factors, bank
requires consideration
for effective banking
system?
Pearson
Correlation 1 .146 .058 -.009 -.077 .028
Sig. (2-
tailed) .311 .689 .949 .594 .846
N 50 50 50 50 50 50
. Which of the
following influence is
determined in
Malaysia at most by
taking advantage of
banking services?
Pearson
Correlation .146 1 .191 -.107 .102 .063
Sig. (2-
tailed) .311 .183 .458 .483 .662
N 50 50 50 50 50 50
What is position of
banking sector in
Malaysia in
comparison to
previous years?
Pearson
Correlation .058 .191 1 .008 -.139 -.019
Sig. (2-
tailed) .689 .183 .958 .337 .897
N 50 50 50 50 50 50
1. Which of the
following economic
factor can influence
the banking
Pearson
Correlation -.009 -.107 .008 1 -.061 -.341*
Sig. (2-
tailed)
.949 .458 .958 .676 .015

performance in large
manner in the
N 50 50 50 50 50 50
1. Do you agree
that negative
economic condition
can negatively
influence the growth
of finance and
banking sector of
Malaysia?
Pearson
Correlation -.077 .102 -.139 -.061 1 .161
Sig. (2-
tailed) .594 .483 .337 .676 .265
N 50 50 50 50 50 50
1. Is there any
direct relationship
between the
economic condition of
country and growth of
banking sector in
Malaysia?
Pearson
Correlation .028 .063 -.019 -.341* .161 1
Sig. (2-
tailed) .846 .662 .897 .015 .265
N 50 50 50 50 50 50
*. Correlation is significant at the 0.05 level (2-tailed).
The value of correlation lies between +1 and -1. A positive value of correlation helps in assessing that there is a positive relation
between the variables (Hinton and McMurray, 2017). However, in case of negative value, it depicts the negative correlation between
the variables. The table of correlation above helps in making an assessment of the data set that there are some factors that are
positively related to each other and other are negatively related. Various questions are selected to analyse the correlation between them
which has helped the researcher to reach to a conclusion. The correlation between each of the selected variable is estimated. The
Pearson correlation value helps in identifying the relationship is a most effective manner. A value above 0.5 shows very high

correlation. The value below -0.5 helps in depicting very low correlation between the variable. The values of correlation lying between
-0.5 to +0.5 helps in understanding the high positive correlations and low negative correlation between the variables.

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Online
Impact of a banking crisis. 2017. [Online]. Available through < https://www.economicshelp.org/blog/16958/economics/impact-of-a-
banking-crisis/>

APPENDIX 1
Questionnaire
Name: _____________
Age: ______________
1. Do you know the meaning and concept of the economic value?
 Yes
 No
 Can’t say
2. Do you know that the interest rate is determined by the central bank?
 Yes
 No
 Can’t say
3. Profitability of bank and interest rates are linked to each other.
 Strongly Agree
 Agree
 Slightly Agree
 Disagree
 Strongly Disagree
4. In past years do you observe that profit growth rate declined sharply in bank?
 Strongly Agree
 Agree
 Slightly Agree
 Disagree
1

 Strongly Disagree
5. Do you agree that Global economic environment has significant impact on your bank?
 Strongly agree
 Agree
 Slightly Agree
 Disagree
 Strongly disagree
6. Do you agree that positive condition of economy can improve the growth of the bank?
 Strongly agree
 Agree
 Slightly Agree
 Disagree
 Strongly disagree
7. Do you agree that negative economic condition can negatively influence the growth of finance
and banking sector of Malaysia?
 Strongly agree
 Agree
 Slightly agree
 Disagree
 Strongly disagree
8. Is there any direct relationship between the economic condition of country and growth of banking
sector in Malaysia?
2

 Yes
 No
 Can’t say
9. Which of the following economic factor can influence the banking performance in large manner
in the Malaysia?
 Inflation rate
 Economic policies
 Law and legislation
 Other
10. How banking sector get influence with respect to economic stability?
 Setting interest rates
 Providing financial services to customers
 Granting and loan facilities.
11. What will be market position, if Maybank increases its interest rate on deposit?
 Increasing savings
 Enhancing public interest towards banking facilities
 Positive influence on making money for banks
 No impact
12. Is other sector of country get affected due to changes in interest and income tax rates?
 Yes
 No
 Sometimes
3

13. Which sector affected at most due to economic instability of Malaysia other than banking sector?
 Business and marketing
 Production and operation system
 Employment
 Technological
14. What are the factors that impact on banking sector due to fluctuations in government policies of
Malaysia?
 Imbalanced management
 Changes in public interest towards saving and loan facilities
15. What is the impact of previous years' banking functions of Maybank because of changes in political
environmental factors?
 Increasing
 Neutral
 Decreasing
16. What is the role of bank in economic stability of the country?
 Interest rates for encouraging public towards deposits
 Granting loans for businesses' expansion
 Credit and finance facilities
17. How does bank help to government in nation's financial systems?
 Advising for management
 Reserve fund
4

 Financial aid
18. What is the bank's advisory role in economic stability of Malaysia?
 Suggestions for market stability
 Determining tools for proper management
 Advises on reducing expenses and increasing revenue.
19. How bank is significant for public welfare in terms of financial services?
 Saving through deposit
 Granting loan facilities
 Credit facilities
 Advises on financial system
20. Does bank play crucial role in minimizing risks for its customers?
 Yes
 No
 Sometimes
21. In which manner bank make money?
 Collecting fund
 Interest on loans
 Other facilities.
22. Which type of loans and granting facilities are provided by bank?
 Loan for businesses and their expansion
 Export and import facilities within countries
5

 Education, vehicle and other loans.
23. What are primary functions of a bank?
 Saving public funds
 Granting loans
 Both
24. What are secondary functions of bank?
 Utility services
 CSR implementation
 Collecting fund
25. What facilities are provided by bank for country's people?
 Savings and loans
 Building up public interest towards financial services
 Establishing coordination among different sectors
 Economic stability of Malaysia.
26. Is bank able to support financially to businesses for expansion?
 Yes
 No
 Sometimes
27. Evaluate relationship between banking sector and economic growth of Malaysia.
 Dependent of each other
 Neutral
6

 No link between them.
28. How banking is effective for creating and maintaining good relationship with other countries of the
world?
 In respect of exchanging currencies
 Loans on export and import of goods and services among countries
29. Is bank measures performance of country's economic position?
 Yes
 No
30. What policies are made by bank for controlling over other commercial and private banks of the
country?
 Providing limits on interest rates
 Analysing their performances
 Financial advices for their implementations and controlling on fund
31. Does bank play vital role in stakeholder value creation?
 Yes
 No
 Sometimes
32. How does bank efficient for opportunities to build competitive advantages?
 Through EVA approach
 CSR implementation
 Economic stability
7

 Financial advises
33. What issues are obtained in bank during performance and functions?
 Loan loss provisions
 Non-recurring assets
 Securities accounting
 Changes in government's policies
34. Does bank play effective role in making deposit policies and interest rates?
 Yes
 No
35. What is position of banking sector in Malaysia in comparison to previous years?
 Developing
 Neutral
 Under developed
36. Which of the following influence is determined in Malaysia at most by taking advantage of banking
services?
 Expansion of businesses
 Positive economic and market position
 Technological development
 Employment sector growth
37. Does bank provide proper securities to public in context to savings?
 Yes
 No
8

38. Are rules and regulations made by bank appropriate for economic development of Malaysia?
 Yes
 No
39. In your opinion, does bank follow on securitized banking system?
 Yes
 No
40. How about bank's securitized banking system impact on Malaysia?
 Effective
 Positive
 Neutral
 Negative
41. How is bank's impact on capital market?
 Positive
 Neutral
 Negative
42. Does bank adopt for modern technologies to initiate growth in its financial system?
 Yes
 No
 Sometimes
43. What is the position of bank in comparison to countries' regulatory banks?
 Better
9

 Equal
 Neutral
 Negative
44. Does bank plays effective role in creating financial system safer and more efficient as well?
 Yes
 No
45. What is the role of bank in fund allocation for country?
 Effective
 Neutral
 Ineffective
46. Is bank useful for credit creation and controlling of fund?
 Yes
 No
 Sometimes
47. Rank on banking sector role in economic growth of Malaysia?
 1st order
 2nd order
 3rd order
48. On which of the following factors, bank requires consideration for effective banking system?
 Attractive interest rates
 Considering growth of country's system in all angles.
49. In your opinion, which of the following banking sector is growing in recent time in Malaysia at most?
10

 Retail banking
 Rural banking
 Micro finance
50. What is impact on GDP of the country in contribution of bank?
 Increasing
 Neutral
 Decreasing
11

APPENDIX 2
Response rate
Statistics
In
past
year
s do
you
obse
rve
that
profit
grow
th
rate
decli
ned
shar
ply
in
bank
?
Do
you
agree
that
negati
ve
econo
mic
condit
ion
can
negati
vely
influe
nce
the
growt
h of
financ
e and
banki
ng
sector
of
Malay
sia?
Is
othe
r
sect
or of
coun
try
get
affec
ted
due
to
chan
ges
in
inter
est
and
inco
me
tax
rates
?
Whic
h
secto
r
affect
ed at
most
due
to
econ
omic
insta
bility
of
Mala
ysia
other
than
banki
ng
secto
r?
How
bank
is
signifi
cant
for
public
welfa
re in
terms
of
finan
cial
servic
es?
In
whic
h
man
ner
ban
k
mak
e
mon
ey?
What
are
prim
ary
funct
ions
of a
bank
?
What
are
secon
dary
functi
ons of
bank?
Is
bank
able to
suppor
t
financi
ally to
busine
sses
for
expan
sion?
Is bank
measur
es
perform
ance of
country'
s
econo
mic
position
?
Does
bank
play
vital
role in
stakeh
older
value
creatio
n?
Does
bank
provi
de
prop
er
secur
ities
to
publi
c in
conte
xt to
savin
gs?
Are
rules
and
regulati
ons
made
by
bank
appropr
iate for
econo
mic
develo
pment
of
Malaysi
a?
In
your
opinio
n,
does
bank
follow
on
securi
tized
banki
ng
syste
m?
Ho
w is
ban
k's
imp
act
on
capit
al
mar
ket?
N
Va
lid 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Miss
ing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cron Bach Alpha
Item-Total Statistics
12

Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
1. Do you know the
meaning and concept of the
economic value?
26.36 16.072 .291 . .362
Do you know that the interest
rate is determined by the
central bank?
26.40 16.939 .143 . .396
1. In past years do you
observe that profit growth
rate declined sharply in
bank?
25.84 14.913 .172 . .386
1. Profitability of bank
and interest rates are linked
to each other.
25.86 13.919 .279 . .339
1. Do you agree that
positive condition of
economy can improve the
growth of the bank?
25.98 15.408 .144 . .397
Is other sector of country get
affected due to changes in
interest and income tax
rates?
26.44 18.537 -.138 . .450
In which manner bank make
money? 26.36 16.072 .291 . .362
. Is bank measures
performance of country's
economic position?
26.46 17.804 .029 . .417
How banking is effective for
creating and maintaining
good relationship with other
countries of the world?
26.50 17.724 .048 . .414
What facilities are provided
by bank for country's people? 25.50 15.888 .134 . .398
. Is bank able to support
financially to businesses for
expansion?
26.36 18.194 -.084 . .444
. What are secondary
functions of bank? 26.26 16.849 .134 . .397
13

. Which type of loans and
granting facilities are
provided by bank?
26.36 16.072 .291 . .362
Does bank play crucial role in
minimizing risks for its
customers?
26.40 16.939 .143 . .396
What are the factors that
impact on banking sector due
to fluctuations in government
policies of Malaysia?
26.54 17.151 .188 . .392
What is the impact of
previous years' banking
functions of Maybank
because of changes in
political environmental
factors?
26.08 17.218 .018 . .430
Correlation
Correlations
48. On which
of the
following
factors, bank
requires
consideration
for effective
banking
system?
. Which of
the following
influence is
determined
in Malaysia
at most by
taking
advantage
of banking
services?
What is
position of
banking
sector in
Malaysia in
comparison
to previous
years?
1. Which
of the
following
economic
factor can
influence the
banking
performance
in large
manner in the
Malaysia?
1. Do
you agree
that
negative
economic
condition
can
negatively
influence
the growth
of finance
and
banking
sector of
Malaysia?
1. Is
there any
direct
relationship
between the
economic
condition of
country and
growth of
banking
sector in
Malaysia?
48. On which
of the
following
factors, bank
Pearson
Correlation 1 .146 .058 -.009 -.077 .028
Sig. (2-
tailed)
.311 .689 .949 .594 .846
14

requires
consideration
for effective
N 50 50 50 50 50 50
. Which of the
following
influence is
determined in
Malaysia at
most by taking
advantage of
banking
services?
Pearson
Correlation .146 1 .191 -.107 .102 .063
Sig. (2-
tailed) .311 .183 .458 .483 .662
N 50 50 50 50 50 50
What is
position of
banking sector
in Malaysia in
comparison to
previous
years?
Pearson
Correlation .058 .191 1 .008 -.139 -.019
Sig. (2-
tailed) .689 .183 .958 .337 .897
N 50 50 50 50 50 50
1. Which
of the
following
economic
factor can
influence the
banking
performance
in large
manner in the
Malaysia?
Pearson
Correlation -.009 -.107 .008 1 -.061 -.341*
Sig. (2-
tailed) .949 .458 .958 .676 .015
N 50 50 50 50 50 50
1. Do you
agree that
negative
economic
Pearson
Correlation -.077 .102 -.139 -.061 1 .161
Sig. (2-
tailed)
.594 .483 .337 .676 .265
15

condition can
negatively
influence the
growth of
N 50 50 50 50 50 50
1. Is there
any direct
relationship
between the
economic
condition of
country and
growth of
banking sector
in Malaysia?
Pearson
Correlation .028 .063 -.019 -.341* .161 1
Sig. (2-
tailed) .846 .662 .897 .015 .265
N 50 50 50 50 50 50
*. Correlation is significant at the 0.05 level (2-tailed).
Regression Analysis
First hypothesis
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 1.276 .357 3.574 .001
48. On which of the following
factors, bank requires
consideration for effective
banking system?
.053 .249 .031 .212 .833
. Which of the following
influence is determined in
Malaysia at most by taking
advantage of banking
services?
.118 .091 .187 1.293 .202
16

Second hypothesis
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 2.240 .677 3.307 .002
48. On which of the following
factors, bank requires
consideration for effective
banking system?
-.305 .473 -.094 -.644 .523
. Which of the following
influence is determined in
Malaysia at most by taking
advantage of banking
services?
.137 .173 .115 .790 .434
2
(Constant) 2.381 .801 2.972 .005
48. On which of the following
factors, bank requires
consideration for effective
banking system?
-.304 .478 -.094 -.636 .528
. Which of the following
influence is determined in
Malaysia at most by taking
advantage of banking
services?
.130 .176 .110 .742 .462
1. Which of the following
economic factor can
influence the banking
performance in large manner
in the Malaysia?
-.060 .178 -.050 -.338 .737
Third hypothesis
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
17

B Std. Error Beta
1
(Constant) 1.466 .199 7.356 .000
1. Do you agree that
negative economic condition
can negatively influence the
growth of finance and
banking sector of Malaysia?
.088 .078 .161 1.129 .265
18