Global Uncertainty: The Influence of Monetary Policies Order and Inflation Volatility on Bank Profitability African Bank and Middle East Bank

Bayu Firmansyah, Aldi Fajar Fardiansyah, Benny Dhevyanto
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Abstract

The objective of this paper is to examine the factors that influence the resilience and adaptability of banks to economic disruption. The aim is to encourage a collaborative and cooperative approach to these challenges. This study analyses the impact of monetary policies, inflation trends, and bank-specific determinants on bank profitability in the African and Middle Eastern regions. A quantitative research approach was used to assess macro and micro factors affecting bank profitability, using secondary data. The macro variables were obtained from the International Monetary Fund (IMF), and the micro variables were extracted from the banks' annual accounts. The research findings indicate that monetary policy and inflation have significant impacts on banks' profitability. Additionally, the System Generalized Method of Moments (GMM) model revealed that the annual interest rate (IR), inflation (INF), capital adequacy ratio (CAR), and previous financial performance (Lagged ROA/ROE) have positive and significant effects on both ROA and ROE. In addition, the loan-to-deposit ratio (LDR) had a significant positive effect on ROE, while the non-performing loan ratio (NPLr) had a significant negative effect. The validity and suitability of the GMM regression model used in this study were confirmed by the AR(2) and Sargan Test results. These findings provide valuable insights for decision-makers in the banking sector to respond to changes in monetary policy and manage risks associated with inflation fluctuations. The study emphasizes the importance of capital management and credit risk management in sustaining bank profitability amidst economic uncertainty.
全球不确定性:货币政策秩序和通胀波动对银行盈利能力的影响 非洲银行和中东银行
本文旨在研究影响银行抵御和适应经济混乱的因素。目的是鼓励以协作和合作的方式应对这些挑战。本研究分析了非洲和中东地区货币政策、通货膨胀趋势和银行特有决定因素对银行盈利能力的影响。本研究采用定量研究方法,利用二手数据评估影响银行盈利能力的宏观和微观因素。宏观变量来自国际货币基金组织(IMF),微观变量来自银行年度账目。研究结果表明,货币政策和通货膨胀对银行盈利能力有重大影响。此外,系统广义矩法(GMM)模型显示,年利率(IR)、通货膨胀率(INF)、资本充足率(CAR)和以往财务业绩(滞后 ROA/ROE)对 ROA 和 ROE 均有正向显著影响。此外,贷存比(LDR)对 ROE 有显著的正向影响,而不良贷款率(NPLr)则有显著的负向影响。AR(2) 和 Sargan 检验结果证实了本研究中使用的 GMM 回归模型的有效性和适用性。这些研究结果为银行业决策者应对货币政策变化和管理与通胀波动相关的风险提供了有价值的见解。本研究强调了资本管理和信贷风险管理在经济不确定情况下维持银行盈利能力的重要性。
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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