Determinants of net interest margin in Nepalese commercial banks

Sabuj Khadka, A. Khadka
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Abstract

This study explored and analyzed the determinants of Net Interest Margin (NIM) of Nepalese commercial banks. The research focuses on three independent variables: Capital Adequacy Ratio (CAR), Credit-Deposit Ratio (CDR), and Non-Performing Loan Ratio (NPLR). Descriptive analysis and regression tests were conducted to analyze the data obtained from a sample of 10 commercial banks with 50 observations. The descriptive statistics reveal the mean and range of the variables, indicating the average and variability of CAR, CDR, NPLR, and NIM in the sample. The regression analysis examines the relationship between the independent variables and NIM. The findings suggest that CDR significantly impacts NIM, indicating that higher utilization of deposits for lending activities contributes to increased interest income and, ultimately, higher NIM. However, CAR and NPLR do not show significant relationships with NIM. The results of this study are consistent with previous research that emphasizes the importance of managing the credit-deposit relationship in optimizing NIM. The findings provide insights for Nepal's policymakers, banking regulators, and commercial banks to enhance profitability and financial stability.
尼泊尔商业银行净息差的决定因素
本研究探讨并分析了尼泊尔商业银行净息差(NIM)的决定因素。研究重点关注三个自变量:资本充足率(CAR)、信用存款比率(CDR)和不良贷款率(NPLR)。采用描述性分析和回归检验对10家商业银行50个观察点的样本数据进行分析。描述性统计揭示了变量的平均值和范围,表明样本中CAR、CDR、NPLR和NIM的平均值和变异性。回归分析检验了自变量与NIM之间的关系。研究结果表明,CDR显著影响NIM,表明贷款活动中存款的更高利用率有助于增加利息收入,并最终提高NIM。然而,CAR和NPLR与NIM的关系不显著。本研究的结果与先前的研究一致,强调管理信用-存款关系在优化NIM中的重要性。研究结果为尼泊尔的政策制定者、银行监管机构和商业银行提高盈利能力和金融稳定性提供了见解。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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