Profitability of Commercial Bank on Interest Rate Deregulation

Tijjani Muhammad, Abatcha Melemi
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Abstract

JEL Classification: G18; G28. This study focuses on impacts of deregulation policy of interest rate on the profitability of commercial bank, which will create competition among conventional financial institution for their traditional activities of banks (Deposits, loans and other financial institutions activities). The demand and supply will increase to encourage fund mobilization based on interest rate. Sanity becomes significant in the financial institution as utilization of fund is been judiciously encouraged and invests it to the most profitable ventures. The study explored the survey questionnaire by selecting five financial institutions and distributes twenty (20) questionnaires for each financial institution to their respective managers (experts) for their input. The simple description analysis and correlation were considered for variables comparison to achieve the research objectives. The research findings indicate that the deregulation significantly contributed to the profitability of commercial financial institution and promote competition among their counterpart. The study also reveals that the deregulation in interest rate leads to an increase in profit maximization. The study recommended the changes in the discount rate will reflect a stipulated range depending on how monetary policy pursued and the relation of a current market economy with interest rate, the sufficient control of the institutions and regulatory bodies to ensure the forces driving the economy as adequately managed and controlled.
利率管制对商业银行盈利能力的影响
JEL分类:G18;G28。本研究的重点是利率放松管制政策对商业银行盈利能力的影响,这将使传统金融机构之间竞争银行的传统活动(存款、贷款和其他金融机构活动)。需求和供给将会增加,从而鼓励以利率为基础的资金调动。理智在金融机构中变得重要,因为资金的使用被明智地鼓励并投资于最有利可图的企业。本研究通过选择五家金融机构,并为每家金融机构分发二十(20)份调查问卷给各自的经理(专家),供其输入,从而对调查问卷进行了探讨。变量比较采用简单描述分析和相关性分析,以达到研究目的。研究发现,放松管制显著提高了商业金融机构的盈利能力,促进了同业之间的竞争。研究还发现,利率放松管制导致利润最大化的增加。该研究建议,贴现率的变动将反映一个规定的范围,这取决于货币政策的推行方式和当前市场经济与利率的关系,以及机构和监管机构的充分控制,以确保推动经济的力量得到充分的管理和控制。
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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