E-Business
TOPIC Analyses of Malaysian Bank Companies Branching Branches into International Market; a Case Study of RHB Bank
Case Study Assignment
EBB 6143: Money, Banking and Financial Market
Name
GEORGE ANAK JABU
Corporate Master of Business Administration
Semester 5/ Session 2011-2013
INTRODUCTION
Since financial crisis 1997/1998 there has been a very large expansion in the number of bank branches in Malaysia and into international market and in the number of communes served by branches. These developments are variously a consequence of market pressures, ASEAN’s plan to open up their market for their countries member and Malaysian Bank Firm should answer these challenges and do some action to branching out their bank in ASEAN country. For instance, RHB Bank already open branch in Singapore, Brunei and Thailand. It is somewhat surprising, in a period short when a young establishment banks such as RHB Bank are increasingly adopting modern style of international business of banking system and those the biggest challenge is that such large brick and mortar investments should be occurring. The East Asian financial crisis of 1997 highlighted the link between financial liberalization and instability of the banking sector. All five countries, Malaysia, Thailand, Korea, Indonesia and the Philippines, had deregulated their banking systems some time before the onslaught of that banking debacle. In line with the doctrine advocated by McKinnon (1973) and Shaw (1973), these countries had deregulated their financial system with the objective of creating a more efficient and competitive market driven financial sector. Developing an efficient system is the essence of financial liberalization. There exists studies that have found how financial development can stimulate growth; such as the studies by King and Levine (1993) and Johnston and Pazarbasioglu (1995). On the other hand, of late, numerous studies indicate that there are dangers on the road to liberalization
Case Study Assignment
EBB 6143: Money, Banking and Financial Market
Name
GEORGE ANAK JABU
Corporate Master of Business Administration
Semester 5/ Session 2011-2013
INTRODUCTION
Since financial crisis 1997/1998 there has been a very large expansion in the number of bank branches in Malaysia and into international market and in the number of communes served by branches. These developments are variously a consequence of market pressures, ASEAN’s plan to open up their market for their countries member and Malaysian Bank Firm should answer these challenges and do some action to branching out their bank in ASEAN country. For instance, RHB Bank already open branch in Singapore, Brunei and Thailand. It is somewhat surprising, in a period short when a young establishment banks such as RHB Bank are increasingly adopting modern style of international business of banking system and those the biggest challenge is that such large brick and mortar investments should be occurring. The East Asian financial crisis of 1997 highlighted the link between financial liberalization and instability of the banking sector. All five countries, Malaysia, Thailand, Korea, Indonesia and the Philippines, had deregulated their banking systems some time before the onslaught of that banking debacle. In line with the doctrine advocated by McKinnon (1973) and Shaw (1973), these countries had deregulated their financial system with the objective of creating a more efficient and competitive market driven financial sector. Developing an efficient system is the essence of financial liberalization. There exists studies that have found how financial development can stimulate growth; such as the studies by King and Levine (1993) and Johnston and Pazarbasioglu (1995). On the other hand, of late, numerous studies indicate that there are dangers on the road to liberalization
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