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The Relationship Between Household Credit and Banking Stability in Malaysia: Panel Evidence

Gadjah Mada International Journal of Business (GamaIJB) · Vol. 23 No. 2 (2021) · pp. 155–172

DOI
10.22146/gamaijb.64451
ISSN
2338-7238, 1411-1128
Published
2021-05-20
Publisher
Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
Language
eng
License
creativecommons.org/licenses/by-sa/4.0

Abstract

This study investigates the relationship between household credit and banking stability in Malaysia using a sample of 37 commercial banks spanning the period from 2008 to 2015. In analyzing household credit’s influence on the Malaysian banking sector’s stability, household credit was categorized into two components, namely mortgage and consumer credit. The Banking Stability Index (BSI) for each bank is constructed using 15 bank-specific variables and some macro-economic variables. The determinants of the BSI are estimated using a static panel data technique. The fixed-effects regression results showed a statistically significant negative relationship between both forms of household credit (mortgage credit and consumer credit) upon the banking sector’s stability. The finding signals that understanding the link between household credit and the Bank Stability Index is crucial to the policymakers and the banks’ management in closely monitoring household credit, particularly mortgage and consumer credit.

Keywords

Collaboration network of the authors

6 authors · 8 co-authorship links · 2 across different organisations

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • National University of Malaysia
  • Universiti Teknologi MARA
  • Universiti Malaysia Sarawak
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Bakri bin Abdul KarimUniversiti Malaysia Sarawak1
Mohamed Aseel ShokrNational University of Malaysia1
Mansor JusohNational University of Malaysia1
Mohd Azlan Shah ZaidiNational University of Malaysia1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.ugm.ac.id/gamaijb/oai, first harvested 28 Okt 2026, last seen 28 Okt 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">The Relationship Between Household Credit and Banking Stability in Malaysia: Panel Evidence</dc:title>
	<dc:creator>NIZAR, NURHUDA</dc:creator>
	<dc:creator>Abdul Karim, Zulkefly</dc:creator>
	<dc:subject xml:lang="en-US">Business;Finance</dc:subject>
	<dc:subject xml:lang="en-US">Household credit; household debt to GDP; mortgage credit; consumer credit; banking stability; index</dc:subject>
	<dc:subject xml:lang="en-US">G2, G5</dc:subject>
	<dc:description xml:lang="en-US">This study investigates the relationship between household credit and banking stability in Malaysia using a sample of 37 commercial banks spanning the period from 2008 to 2015. In analyzing household credit’s influence on the Malaysian banking sector’s stability, household credit was categorized into two components, namely mortgage and consumer credit. The Banking Stability Index (BSI) for each bank is constructed using 15 bank-specific variables and some macro-economic variables. The determinants of the BSI are estimated using a static panel data technique. The fixed-effects regression results showed a statistically significant negative relationship between both forms of household credit (mortgage credit and consumer credit) upon the banking sector’s stability. The finding signals that understanding the link between household credit and the Bank Stability Index is crucial to the policymakers and the banks’ management in closely monitoring household credit, particularly mortgage and consumer credit.</dc:description>
	<dc:publisher xml:lang="en-US">Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada</dc:publisher>
	<dc:contributor xml:lang="en-US"></dc:contributor>
	<dc:date>2021-05-20</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
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	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
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	<dc:identifier>https://journal.ugm.ac.id/gamaijb/article/view/64451</dc:identifier>
	<dc:identifier>10.22146/gamaijb.64451</dc:identifier>
	<dc:source xml:lang="en-US">Gadjah Mada International Journal of Business; Vol 23, No 2 (2021): May-August; 155-172</dc:source>
	<dc:source>2338-7238</dc:source>
	<dc:source>1411-1128</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/view/64451/31280</dc:relation>
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	<dc:rights xml:lang="en-US">Copyright (c) 2021 Gadjah Mada International Journal of Business</dc:rights>
	<dc:rights xml:lang="en-US">http://creativecommons.org/licenses/by-sa/4.0</dc:rights>
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