Is ASEAN Ready for Banking Integration? Evidence from Interest Rate Convergence

Sahul Hamid, Fazelina and Hooi , Hooi Lean (2016) Is ASEAN Ready for Banking Integration? Evidence from Interest Rate Convergence. Indonesian Capital Market Review, 8 (2). pp. 72-82. ISSN 2356-3818

Preview

PDF Download (1MB) | Preview

Abstract

Convergence in prices or returns of assets with similar characteristics indicates that the financial market is integrated with regional markets. This paper is the first that test of the movements of interest rates in ASEAN banking sector for the period 1990 - 2012. The empirical analysis is based on a yearly panel of commercial bank interest rate data from 5 ASEAN countries, namely, Indonesia, Malaysia, Philippines, Singapore and Thailand. We assessed the degree and speed of interest rate convergence using beta and sigma convergence method. The findings show that the difference and the dispersion in the interbank rates have reduced since the Asian financial crisis and this trend has become stronger after the Global financial crisis. The findings of this study confirm that interest rates in the ASEAN banking sector are c

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General) > H1-99 Social sciences (General) L Education > LC Special aspects of education > LC5800-5808 Distance education.
Divisions:	Pusat Pengajian Pendidikan Jarak Jauh (School of Distance Education) > Article Pusat Pengajian Sains Kemasyarakatan (School of Social Sciences) > Article
Depositing User:	Mr Noorazilan Noordin
Date Deposited:	12 Oct 2017 02:18
Last Modified:	12 Oct 2017 02:18
URI:	http://eprints.usm.my/id/eprint/37080

Actions (login required)

View Item