Date of Award

1-1-2000

Thesis Type

Masters

Document Type

Thesis

Divisions

Faculty of Business and Economics

Department

-

Institution

Universiti Malaya

Abstract

This research project discusses the causes, recovery measures taken and the effectiveness of the measures to the Malaysian banking crisis in mid 1997. There are combination of factors that contributed to the crisis. Among the factors are excessive credit growth, over-exposure of lending to broad property sector and stock market, weaknesses in the banking system and external shock-currency attack. In addition, tight monetary policy which was designed to rescue the currency attack further aggravated the banking problem. Later in September 1998, Government further response by reverting the above tight monetary policy and gradually easing the monetary policy. Besides that, four other approaches were adopted to strengthen the banking sector and these included the banking merger programme, the setting up Pengurusan Danaharta Nasional Berhad (Danaharta), Danamodal Nasional Berhad (Danamodal) and Corporate Debt Restructuring Committee (CDRC). Government's effort has proved some fruitful results to a certain extent. This was evidence by the downward trend of the non-performing loans of the banking system and the reclassification of some banking institutions to black. In conclusion, some recommendations are made to further strengthen the Malaysian banking system.

Initial

snms

Additional Information

Dissertation (M.A) -- Faculty of Business and Economics, Universiti Malaya, 2000.

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