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Please use this identifier to cite or link to this item: http://hdl.handle.net/1812/768

Title: A study of how bank managers assess small business borrowers in Malaysia
Authors: Chai, Tze Seng
Keywords: Bank managers
Small business-Borrowers-Malaysia
Small-and-medium size enterprise
Commercial bank lending
Issue Date: Jun-2008
Publisher: University of Malaya
Abstract: The purpose of the study is to develop an understanding of the commercial bank lending practices and also to investigate how bank managers make decisions on lending to small firms, particularly the Small-and-medium size enterprise(SMEs).A mail survey technique was employed, and questionnaires were administered on bank Loan officers of local and foreign commercial bank comprising of credit manager,Head of credit,credit controller and branch Manager.The researcher used the cut-off point of the credit scoring system to determine the factors that are important to the bank lending decision.The finding reveal that 71.2% of the variance associated with the bank lending decision can be explained by credit information,Loan policies,Pricing policy,Past experience,financial soundness,relationship and Loan securities.The finding also reveal that repayment of previous loan,intended purpose of loan, type of business activity,Loan activity at other bank and trading experience were ranked as the top criteria in the credit assessment of small business borrowers.Meanwhile, the Trade creditors,Trade debtors,projected income,government guarantee of loan were given the lowest ranks in term of importance.From the study, the commercial banks in Malaysia seem to be conservative and prudent in the credit risk assessment of the SME borrowers.
Description: Dissertation (MBA) Faculty of Business and Accountancy, University of Malaya, 2008.
URI: http://dspace.fsktm.um.edu.my/handle/1812/768
Appears in Collections:Masters Dissertations : MBA

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