This paper investigates the causal

This paper investigates the causal relationship between bank lending and economic growth in Malaysia. The findings indicate direct causality running from bank lending to economic growth and an indirect impact from economic growth to bank lending in Malaysia. Thus, it can be logically assumed that the findings do offer support to the notion that a rapidly growing banking sector can play a key role in improving general economic performance. The above finding has implications for development policies in Malaysia. For one, since bank lending has a causal effect on economic growth, there is policy need to direct attention to liberalizing the financial sector. To this extent, it is worth noting that Cole (1995) and Ariff and Khalid (2000) have indicated that the financial reforms in Malaysia have been relatively successful and have resulted in economic growth. Finally, and more importantly, economies such as Malaysia’s, which is highly dependent on the banking sector, as a source of finance, should commence developing their capital markets to position themselves as an alternative source of finance to the private sector. This would reduce the private sector reliance on the banking sector and hence make the private firms and the economy as a whole more resilient to adverse shocks in the banking system.

Results (English) 2:

This paper investigates the causal relationship the between bank Lending and economic growth in Malaysia. The findings indicate direct causality running from the Economic Bank Lending growth and an indirect impact from the Economic Growth Lending to banks in Malaysia. Thì, it can be logically giả sử là findings offer support to the notion due to a rapidly growing banking sector có can play a key role in general Improving Economic performance. The above finding has Implications for development policies in Malaysia. For one, since bank has a causal effect on Lending Economic growth, there is need to direct policy attention to liberalizing the Financial sector. To this extent, it is worth noting có Cole (1995) and Ariff and Khalid (2000) have indicated rằng đã Financial reforms in Malaysia have resulted in Relatively successful and Economic Growth. Finally, and more importantly, Economies như Malaysia's, mà dependent on the banking sector highly, as a source of finance, shouldnt commence có Developing Capital Markets as an alternative to position Themselves source of finance to the private sector. This would Reduce the reliance on the banking sector on the private sector and make the private Hence Firms and the economy as a whole more resilient to adverse shocks in the banking system. Developing Capital Markets commence shouldnt to ask for their position as an alternative source of Themselves to the private finance sector. This would Reduce the reliance on the banking sector on the private sector and make the private Hence Firms and the economy as a whole more resilient to adverse shocks in the banking system. Developing Capital Markets commence shouldnt to ask for their position as an alternative source of Themselves to the private finance sector. This would Reduce the reliance on the banking sector on the private sector and make the private Hence Firms and the economy as a whole more resilient to adverse shocks in the banking system.

Results (English) 3:

This paper investigates causality inference between lending and bank economic growth in Malaysia. The results show that: directly from the bank lending causality run safe indirect impact on economic growth and economic growth lending from the big banks in Malaysia. Thus, it can be assumed that logically, which supports the literature notion and grows rapidly, that a banking sector can play a key role in general economic performance improvement. The findings above have implications for development policy in Malaysia. For a direct consequence of a causal inference, because the bank lending effect on economic growth requires large attention liberalizing financial sector. To this extent, it is noteworthy that Cole (1995) and ariff and Khalid (2000) have indicated, financial reforms in Malaysia has resulted in relatively successful, there is economic growth. Finally, importantly economies and more, such as Malaysia, which is highly dependent on the banking sector, as a source of financial development of the capital market, commence should be used as an alternative source of its position in the private financial sector. This will reduce reliance on banks and the private sector of private sector and thus make the enterprise and the economy as a whole larger resilient adverse shocks in the banking system.