Bankss Net Interest Margin and the Level of Interest Rates

Author(s):  
Ramona Busch ◽  
Christoph Memmel
2020 ◽  
Vol 21 (1) ◽  
pp. 51
Author(s):  
Pristin Prima Sari ◽  
Ardian Prima Putra

AbstractsThe study found empirical proof the role of third party funds (DPK) mediate the influence of net interest margin (NIM) on bank credit growth listed in Indonesia Stock Exchange on 2015-2018. The study uses data from the bank�s annual financial statements. The Study covers 22 commercial banks resulting in 88 bank-year observations. Research using Smartpls 3.0 statistical tools to process data and path analysis to compute data. The results obtained are third party funds (DPK) that can positively mediate the influence of net interest margin (NIM) on credit growth. The greater DPK create the profitability of bank interest rates increases bank credit growth. Partially Net interest margin (NIM) and third party funds (DPK) can increase bank credit growth. Net interest margin (NIM) also can increase the amount of third party funds (DPK). This study is useful for bank management to make decisions on determining bank margins, obtaining third party funds (DPK) and credit, for the government for study and mapping materials related to bank lending and the amount of bank interest rates, for further research is for reference material related to factors affecting lending.Keywords : Net Interest Margin, Third Party Fund, Credit, IDX


2016 ◽  
Vol 1 (2) ◽  
pp. 117
Author(s):  
Fidane Spahija

In Kosovo, but in all developing countries, the foreign investment is the locomotive of the country that considered as the most important economic sectors. In general it can be concluded that most of the investment originates from developed countries and that these investments return to these places. Origin of investments in Kosovo mainly comes from countries such as Austria, Germany, Slovenia, Great Britain, Switzerland, Turkey, the Netherlands, Albania, Serbia, USA, France, Macedonia, Croatia, Cyprus, Norway, Italy, Greece etc. The banking sector in Kosovo has been very attractive to the foreign investors. A total of nine commercial banks, seven are foreign owned. Foreign investments are primarily generated as investments in shares of foreign shareholders from different countries of the world. Investments in securities have increased by the banking sector in 2014. With the change of the interest rate it has also changed net interest margin of the banking sector. Interest on loans and deposits has continued to decline. Especially interest rates on deposits in 2014 have fallen to 1. 1%. This linked to the investment bank in securities of our government as the initiator in this area but cannot be denied to the investment of foreign governments. With the decrease of credit interest rate will be the development of sustainable economic growth and boost investment.


2020 ◽  
Vol 12 (1) ◽  
pp. 9
Author(s):  
Paolo Agnese ◽  
Paolo Capuano

This paper investigates the impact of unconventional monetary policy (UMP) on bank profitability in the euro area, over the period 2007-2019.In particular, through multiple regression models, we analyze the relationship between the UMP variables (Longer-term refinancing operations and Securities held for monetary policy purposes) and the main bank profitability variables used in the literature (Return on average equity, Return on average assets and Net interest margin).This work is original compared to recent studies on the subject as it considers the impact of UMP expressed in terms of volumes rather than in terms of interest rates on bank profitability variables.Our results suggest that the UMP adopted by the Eurosystem over the period considered is negatively associated with bank profitability expressed by the Return on average equity and the Return on average asset. By contrast, monetary policy measures do not seem to have had any effect on the Net interest margin. 


Liquidity ◽  
2018 ◽  
Vol 2 (1) ◽  
pp. 13-20
Author(s):  
Amrizal Amrizal

The article focuses to analyze finance ratio consist of Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM) Capital Adequacy Ratio (CAR) except Earnings before Interest Tax (EBIT). The research is conducted to three conventional banking (BNI 46, Mandiri and BRI) and three syariah banking (Bank Muamalat Indonesia, Bank Mega Syaria and Bank Syariah Mandiri) for annual report periods 2007 to 2011. The result shows, the average increase EBIT to conventional banking groups during period 2007 to 2011 are 1.91% while the average EBIT to syariah banking groups are 1.53%. The average of ROA to conventional banking groups are 3.01% while the average ROA to syariah banking groups are 1.99%. The average of ROE to conventional banking groups is 24.19% while the average of ROE to syariah banking groups is 33.31%. The average of NIM to conventional banking groups during period 2007 to 2011 are 7.08% while the average of NIM to syariah banking groups during period 2007 to 2011 are 8.14%. The average of CAR to conventional banking groups is 15.63%, while the average of CAR to syariah banking groups during the period are 12.19%.


2021 ◽  
Vol 1 (1) ◽  
pp. 21-29
Author(s):  
Amalia Amanda Hidayah ◽  
Eti Kurniati ◽  
Farid H. Badruzzaman

Abstract. This study used a sample of 6 companies. The research objective was to determine the effect of Non Performing Loans (NPL), Operational Costs on Operational Income (OCOI), Net Interest Margin (NIM), Loan to Deposits Ratio ( LDR) and Capital Adequacy Ratio (CAR) to profitability (ROA). Problem solving using multiple linear regression analysis techniques. Based on the analysis, it is known that NPL and LDR have a significant negative effect on profitability (ROA), while CAR have a significant positive effect on profitability (ROA). Abstrak. Penelitian ini menggunakan sampel sebanyak 6 perusahaan. Tujuan penelitian untuk mengetahui pengaruh Non Performing Loan (NPL), Biaya Operasional terhadap Pendapatan Operasional (BOPO), Net Interest Margin (NIM), Loan to Deposits Ratio (LDR) dan Capital Adequacy Ratio (CAR) terhadap profitabilitas (ROA). Pemecahan masalah menggunakan teknik analisis regresi linier berganda. Berdasarkan hasil analisis maka diketahui bahwa NPL dan LDR berpengaruh negatif signifikan terhadap profitabilitas (ROA), sedangkan CAR berpengaruh positif signifikan terhadap profitabilitas (ROA).


2018 ◽  
Vol 53 (4) ◽  
pp. 1005-1029 ◽  
Author(s):  
Maria-Eleni K. Agoraki ◽  
Georgios P. Kouretas

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