Financial Performance of Commercial Banks During Financial Crisis

This paper is analyzing the financial performance of selected Commercial Banks in Malaysia during the period of 2004-2008, during the financial crisis. It examines the impact of financial crisis to banks financial performance by employing the financial ratio analysis. The results indicate that that the selected commercial banks does not affected much by the financial crisis, it can be prove by finding results shows a significantly increase in the financial performance of commercial banks in Malaysia occurred during world economic turbulence. The paper is important to analyze the performances of commercial bank in Malaysia because the commercial banks are lending of economic growth in Malaysia. Thus the financial performances of commercial banks are positively reflected by the economic changes for the previous economic downturn but in the case of commercial banks in Malaysia, they are a slightly different. It shows that the financial crisis does not hit much to banking sector. This is proved by the statement issued by The Association of Banks in Malaysia (ABM) said that Malaysia's banking sector remains strong and well capitalized despite the turmoil in the global financial markets.