THE DETERMINANTS OF COMMERCIAL BANK PROFITABILITY IN MALAYSIA

Abstract

The purpose of this research is to examine the determinants of the profitability of Malaysian commercial banks (ROA), by extracting research data from five major commercial banks from 2010 to 2019. The research uses quantitative research methods and secondary financial data, (SPSS) version 20.0 was used to analyze the data, according to three research factors (Credit risk, Liquidity risk, Inflation),wil use Shapiro-Wilk test ,Pearson's Correlation Analysis, Multiple Regression Analysis, and ANOVA One-way Test. In the research results, all independent variables indicate that they are statistically significant for ROA, credit risk has a negative relationship to the bank’s profit, there is a positive relationship between the liquidity risk and the bank’s profitability, the inflation is found to be negatively affected the bank’s profitability.