UNIVERSITI TEKNOLOGI MARA

KAMPUS BANDARAYA MELAKA

FACULTY OF BUSINESS AND MANAGEMENT

FINANCIAL MARKET AND BANKING SERVICES

(FIN435)

GROUP ASSIGNMENT 1 :
EVALUATION AND ANALYSIS OF FINANCIAL INSTITUTIONS
AND NON-BANK FINANCIAL INSTITUTIONS

PREPARED FOR:
MADAM ZUNAIDAH BINTI ABU HASAN

PREPARED BY :

NAME MATRICS ID

NADHIRA IRDINA BINTI RASHA AZWADI 2022452852

KHAIREEN SOFEA BINTI KHAIRUL NIZAM 2022622966

NURKAMALIA WAFIQAH BINTI MOHD GHAZALI 2022868012

AFIQAH ANEESYA BINTI ZAINOL 2022455372

GROUP :
BA242 2A

DATE OF SUBMISSION :
7 JULY 2023
TABLE OF CONTENT
1.0 OVERVIEW 3
2.0 PROFITABILITY RATIO 4
2.1 RETURN ON ASSETS 5
2.3 SPREAD 9
2.4 NET INTEREST MARGIN 10
3.0 LIQUIDITY RATIO 12
3.1 LOANS TO TOTAL ASSETS RATIO 12
4.0 ASSET QUALITY 18
4.1 NON-PERFORMING LOAN 18
4.2 LOAN TO DEPOSIT 20
4.3 DEPOSIT TO SHAREHOLDER FUND 22
5.0 CAPITAL ADEQUACY 23
5.1 RISK WEIGHTED CAPITAL RATIO 23
5.2 CORE CAPITAL RATIO 25
6.0 MANAGEMENT SOUNDNESS 26
7.0 SUGGESTIONS AND RECOMMENDATIONS 28
7.1 PROFITABILITY RATIO 28
7.2 LIQUIDITY RATIO 28
7.3 ASSET QUALITY 28
7.4 CAPITAL ADEQUACY 28
7.5 MANAGEMENT SOUNDNESS 28
8.0 CONCLUSION 29
9.0 REFERENCES 30
1.0 OVERVIEW

Bank Rakyat is a Malaysian cooperative bank founded in 1954. It is Malaysia's largest

cooperative bank, with over 14 million members and 1,100 locations nationwide. The goal of the
bank is to "empower Malaysians through financial inclusion and sustainable development." Bank
Rakyat provides its members with a comprehensive range of financial goods and services,
including as savings accounts, current accounts, loans, mortgages, insurance, and investment
products. Members can also take advantage of a variety of financial literacy and education
programmes offered by the bank.

Bank Rakyat is committed to assisting Malaysia's economic development, particularly in

the fields of entrepreneurship and small and medium companies (SMEs). The bank helps SMEs
with a range of programmes, including the Micro Enterprise Fund (MEF) and the Business
Financing-i initiative. In addition to financial services, Bank Rakyat is involved in the community.
The Bank Rakyat Foundation, which grants scholarships and other aid to impoverished
Malaysians, is one of the many humanitarian and environmental programmes supported by the
bank.

Bank Rakyat is a progressive Islamic cooperative bank dedicated to offering the greatest
financial services to its members. The bank is also dedicated to promoting the growth of the
Malaysian economy and community.

In this assignment, we will be evaluating Bank Kerjasama Rakyat Berhad’s financial

performance by analyzing their latest financial report.
2.0 PROFITABILITY RATIO

Profitability ratios are a type of financial metric that measures a company's capacity to create
earnings in relation to its sales, operational costs, balance sheet assets, or shareholders' equity
over time. They are among the most widely used measures in financial research. Profitability
ratios can provide insight into a company's financial performance and health. Ratios are best
utilized as comparison aids rather than as standalone measurements.
2.1 RETURN ON ASSETS

The return on assets (ROA) ratio is a financial statistic that assesses how effectively a company
utilizes its assets to create profits. It is determined by dividing total assets by net income. ROA
can be used to analyze a company's performance over time, to compare it to other companies
in the same industry, or to compare it to a benchmark such as the industry average. A high ROA
shows that the corporation can make a lot of money from its assets. A low ROA shows that the
company's assets are not being used efficiently. Overall, ROA is a useful metric for assessing a
company's financial performance. It can be used to evaluate a company's current financial
health, follow its success over time, and compare it to other firms' performance.

Ratios BANK RAKYAT

(RM’000)
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 2017 2018 2019 2020 2021
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

Net Profit 3,091,004 3,110,017 3,170,272 3,413,344 3,524,110

Total Assets 105,452,002 106,885,223 109,624,278 111,751,114 115,058,158

Return on 2.93% 2.91% 2.89% 3.05% 3.06%

Assets
Based on the table, the ROA of Bank Rakyat shows that in five years the trend was increasing
from 2.93% in 2017 to 3.06% in 2021. Even though the trend was increasing, the value of the
ratio was inconsistent for the five years within the range of 2.89% to 3.06%. As we see the value
in the table, the ratio is being inconsistent but year by year most of the value keeps increasing.
From 2017 to 2019, the ROA for Bank Rakyat is decreasing from 2.93% to 2.89% but the ratio
will increase again in 2020 to 2021 from 3.05% to 3.06%. The bank should consistently utilize
their assets well in generating profit for the bank.
2.2 RETURN ON EQUITY

Return on equity (ROE) is a financial ratio that assesses how successfully a firm uses its equity
(or the funds of its shareholders) to create profits. Divide net income by shareholders' equity to
get it. ROE can be used to analyze a company's performance over time, to compare it to other
companies in the same industry, or to compare it to a benchmark such as the industry average.
A high ROE suggests that the company can create a significant amount of profit from its equity.
A poor ROE suggests that the company is not making the best use of its capital. Overall, ROE is
a useful metric for assessing a company's financial success. It can be used to evaluate a
company's current financial health, follow its success over time, and compare it to other firms'
performance.

Ratios BANK RAKYAT

(RM’000)
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 2017 2018 2019 2020 2021
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦

Net Profit 3,091,004 3,110,017 3,170,272 3,413,344 3,524,110

Total Equity 16,628,353 17,873,724 19,544,708 20,948,388 21,655,195

Return on 18.59% 17.40% 16.22% 16.29% 16.27%

Equity
Based on the table, the ROE of Bank Rakyat shows that in five years the trend was decreasing.
Even though the trend was decreasing, the value of the ratio is being inconsistent for the five
years within the range of 16.22% to 18.59%. As we see the value in the table, the ratio is being
inconsistent but year by year most of the value keeps decreasing. From 2017 to 2019, the ROE
for Bank Rakyat is decreasing from 18.59% to 16.22% but the ratio will increase again in 2020
from 16.22% to 16.29% However, there will be a decrease in ROE from 16.29% to 16.27% in
year 2021. The bank should consistently utilize their equity in generating profit for the bank.
2.3 SPREAD

The spread is the difference between the interest rate offered by a bank to its depositors and the
interest rate generated on consumer loans. A wider spread allows the broker or dealer to profit
more on each trade, but it also implies that the customer will pay more for the security. It is
critical to understand the elements that can influence the spread so that you can make informed
investment selections.

Ratios BANK RAKYAT

(RM’000)
𝐼𝑛𝑡, 𝑖𝑛𝑐𝑜𝑚𝑒 − 𝐼𝑛𝑡. 𝑃𝑎𝑖𝑑 2017 2018 2019 2020 2021
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

Net Interest 3,091,004 3,110,017 3,170,272 3,413,344 3,524,110

Total Assets 105,452,002 106,885,223 109,624,278 111,751,114 115,058,158

Spread 2.93% 2.91% 2.89% 3.05% 3.06%

Based on the table, the interest spread of Bank Rakyat in five years showed an increasing
trend. The trend of interest spread is decreasing starting from 2.93% to 2.89% in 2017 to 2019.
Based on the table, the interest spread of Bank Rakyat increased from 2.89% in 2019 to 3.06%
in 2021. The bank has a higher ratio as the year passes which is good for their profitability.
2.4 NET INTEREST MARGIN

Net interest margin (NIM) is a measure of the difference between the interest income generated
by a company and the interest expense it pays out. It is calculated as a percentage of the
company's average earning assets. NIM can be used to compare a company's performance
over time, to compare a company's performance to other companies in the same industry, or to
compare a company's performance to a benchmark such as the industry average. A high NIM
indicates that a company is generating a lot of profit from its interest income. A low NIM
indicates that a company is not generating as much profit from its interest income.

Ratios BANK RAKYAT

(RM’000)
𝐼𝑛𝑡. 𝐼𝑛𝑐𝑜𝑚𝑒 − 𝐼𝑛𝑡. 𝐸𝑥𝑝𝑒𝑛𝑠𝑒 2017 2018 2019 2020 2021
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

Net Interest 3,091,004 3,110,017 3,170,272 3,413,344 3,524,110

Total Assets 105,452,002 106,885,223 109,624,278 111,751,114 115,058,158

Net Interest RM 3,091,004 RM 3,110,017 RM 3,170,272 RM 3,413,344 RM 3,524,110

Margin
Based on the table, the Net Interest Margin of Bank Rakyat in five years showed an increasing
trend. The value of Net interest Margin has increased for 5 consecutive years starting 2017 to
2021. Based on the table, the amount of interest margin of Bank Rakyat slowly increased over
the 4 years starting from RM 3,091,004 in 2017 to RM 3,524,110 in 2021. It can be concluded
that the bank is getting more interest on loan than what they should pay for interest on deposits.
3.0 LIQUIDITY RATIO

Liquidity ratios are a sort of financial indicator that is used to evaluate a debtor's ability to pay off
current debt obligations without having to obtain extra funds. To ascertain a company's ability to
pay off debt commitments and its margin of safety, liquidity ratios compute variables like the
loans-to-assets ratio and the liquid assets-to-total assets ratio.

3.1 LOANS TO TOTAL ASSETS RATIO

The loans-to-assets ratio is used to determine the total amount of outstanding loans as a
percentage of all assets.The higher this ratio, the more depleted a bank's loan book is and the
lower its liquidity. The higher the ratio, the more likely a bank will default.

LOANS TO TOTAL ASSETS RATIO (TOTAL LOANS/TOTAL ASSETS)

RATIO 2020 2021 PERFORMANCE

LOANS TO TOTAL 76,083,198 77,296,437 GOOD

ASSETS RATIO 111,751,144 115,058,158
= 68. 08% = 67. 18%

Explanation:

From the above calculation, the ratio for Bank Rakyat in 2021 (67.18%) is lower than 2020
(68.08%). It shows that in 2020, Bank Rakyat faces less risk due to the debt being funded by
the assets.
 RATIO 2019 2020 PERFORMANCE

LOANS TO TOTAL 71,194,796 76,083,198 POOR

ASSETS RATIO 109,804,640 11,751,144
= 64. 84% = 68. 08%

Explanation:
From the above calculation, the ratio for Bank Rakyat in 2020 (68.08%) is higher than 2019
(64.84%). It shows that in 2020, Bank Rakyat faces more risk due to the debt being funded by
the assets. The higher this ratio, it indicates a bank loaned up and its liquidity is low.

RATIO 2018 2019 PERFORMANCE

LOANS TO TOTAL 69,003,855 71,194,796 POOR

ASSETS RATIO 106,885,223 109,804,640
= 64. 56% = 64. 84%

Explanation:
According to the calculations above, Bank Rakyat’s ratio in 2019 (64.84%) is greater than in
2018. (64.56%). As a result of the debt being backed by assets, Bank Rakyat faces a greater
risk in 2019. The higher this ratio is, the more a bank has borrowed and the less liquid it is.
 RATIO 2017 2018 PERFORMANCE

LOANS TO TOTAL 69,189,090 69,003,855 GOOD

ASSETS RATIO 105,452,002 106,885,223
= 65. 61% = 64. 56%

Explanation:
According to the calculations above, Bank Rakyat’s ratio in 2018 (64.56%) is lower than in 2017
(65.61%). As a result of the debt being covered by assets, Bank Rakyat will have its reduced
risk in 2018.
3.2 LIQUID ASSETS TO TOTAL ASSETS RATIO

The liquid assets to total assets ratio is a financial metric that measures a company's liquidity.
Liquidity refers to the ability of a company to quickly convert its assets into cash. The ratio is
calculated by dividing the company's liquid assets by its total assets. A higher ratio indicates
that the company has more liquid assets available to meet its short-term obligations.

LIQUID ASSETS TO TOTAL ASSETS RATIO (TOTAL LIQUID ASSETS/TOTAL

ASSETS)

RATIO 2020 2021 PERFORMANCE

LIQUID ASSETS TO 32,075,390 34,294,645 GOOD

TOTAL ASSETS 111,751,144 115,058,158
RATIO
= 28. 70% = 29. 81%

Explanation:
From the above calculation, the ratio for Bank Rakyat in 2021 (29.81%) is higher than 2020
(28.70%). It shows that in 2021, Bank Rakyat faces less risk due to the liquid assets increasing
from year to year.

RATIO 2019 2020 PERFORMANCE

LIQUID ASSETS TO 34,932,910 32,075,390 POOR

TOTAL ASSETS 109,804,640 111,751,144
RATIO
= 31. 81% = 28. 70%

Explanation:
From the above calculation, the ratio for Bank Rakyat in 2020 (28.70%) is lower than 2019
(31.81%). It shows that by 2020, Bank Rakyat faces more risk due to less of the liquid assets in
the company financial statement. The lower this ratio indicates the liquidity is low, which is the
assets are hard to convert to cash.
 RATIO 2018 2019 PERFORMANCE

LIQUID ASSETS TO 34,480,290 34,932,910 POOR

TOTAL ASSETS 106,885,223 109,804,640
RATIO
= 32. 26% = 31. 81%

Explanation:
According to the calculations above, the Bank Rakyat ratio in 2019 (31.81%) will be lower than
in 2018 (32.26%). It reveals that Bank Rakyat will be at greater risk in 2019 due to a decrease in
liquid assets from year to year.

RATIO 2017 2018 PERFORMANCE

LIQUID ASSETS TO 33,283,210 34,480,290 GOOD

TOTAL ASSETS 105,452,002 106,885,223
RATIO
= 31. 56% = 32. 26%

Explanation:

According to the calculations above, the Bank Rakyat ratio in 2018 (32.26%) is higher than in
2017 (31.56%). It appears that in 2017, Bank Rakyat will not be at risk due to an increase in
liquid assets in the company's financial statement. The higher this ratio is, the more liquid the
assets are, and the easier they are to convert to cash.
4.0 ASSET QUALITY
Asset quality is a crucial component of financial analysis since it offers insights into a company's
risk profile and balance sheet stability. Asset quality can measure the performance of a bank by
depending on the default loans that are non-performing loans. The two most crucial variables
affecting total asset quality are the quality of the loan portfolio and the efficiency of the credit
management approach.

4.1 NON-PERFORMING LOAN

Loans or advances issued by financial institutions that are in default or at risk of default are
referred to as non-performing loans (NPLs). In other words, these are loans for which borrowers
have fallen behind on timely principal or interest payments. Since they can have a detrimental
impact on financial institutions' profitability, liquidity, and overall financial health, non-performing
loans are a major source of concern. Borrowers who are in default on their loan payments
cause the lender to lose out on expected earnings and may also cause the value of the loan
asset to decline.

Ratios BANK RAKYAT

(RM’000)
𝑁𝑜𝑛−𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑖𝑛𝑔 𝐿𝑜𝑎𝑛 2017 2018 2019 2020 2021
𝑁𝑒𝑡 𝐿𝑜𝑎𝑛

Non-Performing 135,257 93,741 52,060 554,481 965,527

Loan

Net Loan 69,189,090 69,003,855 70,967,646 76,083,198 77,296,437

Non-Performing 0.19% 0.14% 0.07% 0.73% 1.25%

Loan Ratio
Explanation:

According to the calculation above, the non-performing loan ratios are declining from the year
2017 until 2019. However, there is an increment starting from 2019 until 2021. The lowest
non-performing loan ratio occurs during 2019 which is 0.07%. This demonstrates that none of
the current loans put Bank Rakyat at danger. Bank Rakyat was at the lowest risk of facing its
financial loss. The year 2021 had the highest ratio that is 1.25% of total. Since the ratio is high,
some investors might hesitate to keep their money in Bank Rakyat. This high ratio additionally
indicates that the bank's assets are of poor quality, which increases the likelihood that Bank
Rakyat would suffer financial losses in the future.
4.2 LOAN TO DEPOSIT

A financial measure called the loan-to-deposit ratio (LDR) shows how many loans a bank has
compared to all of its deposits. It is employed to evaluate the liquidity and lending capability of a
bank. The total number of outstanding loans is divided by the total amount of bank deposits to
arrive at the LDR. It is expressed as a percentage, and if the ratio is too high, the bank could not
have sufficient funds needed to cover any unforeseen needs for funding.

Ratios BANK RAKYAT

(RM’000)
𝐺𝑟𝑜𝑠𝑠 𝐿𝑜𝑎𝑛 2017 2018 2019 2020 2021
𝑇𝑜𝑡𝑎; 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝐷𝑒𝑝𝑜𝑠𝑖𝑡𝑠

Gross Loan 70,628,858 70,400,864 72,415,980 78,155,883 79,615,464

Total Customer 83,235,496 82,735,900 83,831,405 85,575,431 86,523,884

Deposits

Loan to Deposit 84.85% 85.09% 86.38% 91.33% 92.02%

Ratio
Explanation:

According to the calculation, the loan-to-deposit ratios (LDR) are increasing from the year 2017
(84.85%) until 2021(92.02%). The inclining LDR can mean that the bank has been lending to
borrowers more frequently as the lending activity happens more frequently. This illustrates the
Bank Rakyat’s capacity to absorb both loan losses and withdrawals from customers. Investors
will not hesitate to keep their money since Bank Rakyat is capable of covering any unforeseen
needs for funding since they have sufficient funds.
4.3 DEPOSIT TO SHAREHOLDER FUND

RATIOS BANK RAKYAT

(RM’000)

𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝐷𝑒𝑝𝑜𝑠𝑖𝑡𝑠 2017 2018 2019 2020 2021

𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝐹𝑢𝑛𝑑

Customer Deposits 83,235,496 82,735,900 83,831,405 85,575,431 86,523,884

Shareholder Fund 13,605,883 14,868,590 16,558,818 17,952,381 18,663,280

reserves

Deposit to 6.12 5.56 5.06 4.77 4.64

Shareholder Fund

Explanation:

Based on the calculation, the deposit to shareholder fund ratio is declining from the year 2017
(6.12%) to the year 2021 (4.64%). This indicates that the liquidity is diluted and Bank Rakyat's
financials are more protected.
5.0 CAPITAL ADEQUACY
Any amount of capital that gives a bank the ability to absorb or accommodate losses while also
providing the bank with sufficient funds to maintain and carry on its operations as a going
concern is considered capital adequacy. Capital inadequacy is the main factor of bank failure
and closure. A high capital adequacy ratio indicates a stronger financial position, as the bank
has a larger buffer to absorb potential losses.

5.1 RISK WEIGHTED CAPITAL RATIO

31 DECEMBER 2017

Risk weighted capital ratio = (Capital Base / Total Risk Weighted Assets) x 100

= (17,007,955 / 76,382,645) x 100

= 22.27%

31 DECEMBER 2018

Risk weighted capital ratio = (Capital Base / Total Risk Weighted Assets) x 100

= (18,114,322 / 77,896,340) x 100

= 23.25%

31 DECEMBER 2019

Risk weighted capital ratio = (Capital Base / Total Risk Weighted Assets) x 100

= (19,552,924 / 80,421,708) x 100

= 24.31%

31 DECEMBER 2020

Risk weighted capital ratio = (Capital Base / Total Risk Weighted Assets) x 100

= (20,904,022 / 84,975,557) x 100

= 24.60%
31 DECEMBER 2021

Risk weighted capital ratio = (Capital Base / Total Risk Weighted Assets) x 100

= (22,768,518 / 86,648,984) x 100

= 26.28%
5.2 CORE CAPITAL RATIO

31 DECEMBER 2017

Core capital ratio = (Tier One Capital / Total Risk Weighted Assets) x 100

= (15,872,259 / 76,382,645) x 100

= 20.78%

31 DECEMBER 2018

Core capital ratio = (Tier One Capital / Total Risk Weighted Assets) x 100

= (17,038,543 / 77,896,340) x 100

= 21.87%

31 DECEMBER 2019

Core capital ratio = (Tier One Capital / Total Risk Weighted Assets) x 100

= (18,374,864 / 80,421,708) x 100

= 22.85%

31 DECEMBER 2020

Core capital ratio = (Tier One Capital / Total Risk Weighted Assets) x 100

= (19,264,875 / 84,975,557) x 100

= 22.67%

31 DECEMBER 2021

Core capital ratio = (Tier One Capital / Total Risk Weighted Assets) x 100

= (20,681,589 / 86,648,984) x 100

= 23.87%
6.0 MANAGEMENT SOUNDNESS

Management soundness refers to the overall effectiveness and competence of the individuals or
teams responsible for making decisions, implementing strategies, and overseeing the
operations of an organization. It encompasses various aspects of management, including
leadership, decision-making, planning, coordination, communication, and execution. Thus,
management soundness is crucial for an organization's success and sustainability. Relevant
factors include how banks limit total expenditure in relation to total income as well as the
proportion of operational expense to total expenditure.

6.1 ADMINISTRATIVE EXPENSES TO TOTAL EXPENDITURE

Ratios Bank Rakyat

(RM’000)

𝐴𝑑𝑚𝑖𝑛 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠 2017 2018 2019 2020 2021

𝑇𝑜𝑡𝑎𝑙 𝐸𝑥𝑝𝑒𝑛𝑑𝑖𝑡𝑢𝑟𝑒

Admin Expenses 1,210,039 1,210,351 1,410,462 1,571,757 1,524,346

Total Expenditure 3,245,264 3,382,670 3,327,879 2,669,129 2,184,440

Administrative expenses to 37.29% 35.78% 42.38% 58.89% 69.78%

total expenditure
 ’

Based on the calculation, the administrative expenses to total expenditure ratio are decreasing
in 2018 (35.78%) from 2017 (37.29%). However, it then increases again from 2019 (42.38%) to
2021 (69.78%). The lowest ratio is in 2018 which is 35.78%. This means that the performance
of Bank Rakyat is great because of the lower admin expenses amount. The highest ratio is in
2021, which amounted to 69.78%. This explains that the performance of Bank Rakyat is bad
due to the rise in admin expenses of the company.
7.0 SUGGESTIONS AND RECOMMENDATIONS

7.1 PROFITABILITY RATIO

Bank Rakyat has a strong profitability ratio, with a net interest margin of RM 3,524110 in
2021. This is well above the industry average. The bank can continue to focus on its
efficiency and profitability by streamlining its operations, reducing its costs, and expanding
its market share.

7.2 LIQUIDITY RATIO

Bank Rakyat also has a strong liquidity ratio, with a liquid assets to total assets ratio of
29.8% in 2021. This is above the industry average of 20%. The bank can maintain its strong
liquidity position by managing its cash flow effectively and by having a diversified portfolio of
assets.

7.3 ASSET QUALITY

Bank Rakyat has a good asset quality, with a non-performing loan (NPL) ratio of 1.25% in
2021. This is well below the industry average of 5%. The bank can continue to maintain its
good asset quality by lending to creditworthy borrowers and by monitoring its loan portfolio
closely.

7.4 CAPITAL ADEQUACY

Bank Rakyat has a strong capital adequacy ratio, with a capital to risk-weighted assets ratio
of 26.28% in 2021. This is well above the regulatory requirement of 10%. The bank can
maintain its strong capital adequacy position by raising additional capital or by retaining
more earnings.

7.5 MANAGEMENT SOUNDNESS

Bank Rakyat has a good management team, with a proven track record of success. The
bank can continue to improve its management soundness by investing in training and
development for its employees, by implementing sound risk management practices, and by
having a strong corporate governance structure.
8.0 CONCLUSION
For understanding their performance, stability and overall impact on the economy,
financial institutions and non-bank financial institutions must be evaluated and analyzed. Various
factors, including financial statements, risk management procedures, regulatory compliance,
and market trends are assessed during this process. Stakeholders can decide whether to fund,
work with, or regulate these institutions by performing detailed evaluation and analysis.

Also, the evaluation and analysis of financial institutions and non-bank financial
institutions are critical for identifying potential systemic risks and vulnerabilities in the financial
system. It enables policymakers to implement appropriate regulations and safeguards to
maintain financial stability and protect consumer interests.

In conclusion, the evaluation and analysis of financial institutions and non-bank financial
institutions are essential for assessing their financial performance, stability, risk management
practices, and regulatory compliance. By conducting through evaluations, stakeholders can
make informed decisions, mitigate risks and contribute to the overall stability and growth of the
economy.
9.0 REFERENCES

ANNUAL REPORT 2017. (2019, March 31). Bank Rakyat. Retrieved July 1, 2023, from

https://www.bankrakyat.com.my/d/about/financial_info/57/attach/Annual%20Report%202

017%20ENG.pdf

ANNUAL REPORT 2018. (n.d.). Bank Rakyat. Retrieved July 1, 2023, from

https://www.bankrakyat.com.my/d/about/financial_info/57/attach/Annual%20Report%202

018%20ENG.pdf

ANNUAL REPORT 2019. (2020, June 30). Bank Rakyat. Retrieved July 1, 2023, from

https://www.bankrakyat.com.my/d/about/financial_info/82/attach/Annual%20Report%202

019.pdf

ANNUAL REPORT 2020. (n.d.). Bank Rakyat. Retrieved July 1, 2023, from

https://www.bankrakyat.com.my/d/about/financial_info/57/attach/Annual%20Report%202

020%20ENG.pdf

ANNUAL REPORT 2021. (n.d.). Bank Rakyat. Retrieved July 1, 2023, from

https://www.bankrakyat.com.my/d/about/financial_info/57/attach/Annual%20Report%202

021%20ENG.pdf

Corporate. (n.d.). Bank Rakyat. Retrieved June 26, 2023, from

https://www.bankrakyat.com.my/c/about/corporate/overview-1

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