Measuring Interest Rate Risk Considering Key Factors Affecting the Net Interest Margin (NIM) Ratio of Commercial Banks in Bangladesh

This study analyzes factors affecting net interest margin of joint-stock commercial banks in Vietnam. The paper uses the secondary data of 26 banks with 182 observations for the period of 2008–2014 and applies the panel data regression method. The empirical results indicate that lending scale, credit risk, capitalization, and in-terest rate have positive impacts on net interest margin. In contrast, managerial efficiency has a negative effect on net interest margin. However, bank size and loan to deposit ratio are statistically insig-nificant to net interest margin.

Download Full-text

The Effect of Risks on Banking Safety: Applied Study on Jordanian Traditional Banks (2005-2016)

International Journal of Economics and Finance ◽

10.5539/ijef.v9n9p102 ◽

2017 ◽

Vol 9 (9) ◽

pp. 102

Author(s):

Mohammad Abdel Mohsen Al-Afeef ◽

Atallah Hassan Al-Ta'ani

Keyword(s):

Interest Rate ◽

Credit Risk ◽

Commercial Banks ◽

Banking Sector ◽

Liquidity Risk ◽

Interest Rate Risk ◽

Bank Credit ◽

Applied Study ◽

Rate Risk ◽

The Impact

Banking sector is one of the most important sectors that support the sustainable economic development in Jordan, therefore this study aimed to test the impact of risks; (Liquidity risk, bank credit risk and interest rate risk) on the safety in the banking sector in the Jordanian commercial banks during the period 2005-2016.The results of the study showed that there is a statistically significant impact for each of liquidity risk and interest rate risk on the safety in the banking sector, and there isn't statistically significant impact for credit risk on the safety in the banking sector during the period of this study, and also find that the explanatory of model was 60.5%, which means that 39.5% due to other factors.

Download Full-text

Derivatives and Interest Rate Risk Management by Commercial Banks

SSRN Electronic Journal ◽

10.2139/ssrn.2644681 ◽

2015 ◽

Cited By ~ 4

Author(s):

Guillaume Vuillemey

Keyword(s):

Risk Management ◽

Interest Rate ◽

Commercial Banks ◽

Interest Rate Risk ◽

Rate Risk ◽

Interest Rate Risk Management

Download Full-text

Basel I to Basel III: Impact of Credit Risk and Interest Rate Risk of Banks in India

Journal of Emerging Market Finance ◽

10.1177/0972652717751541 ◽

2018 ◽

Vol 17 (1_suppl) ◽

pp. S83-S111 ◽

Cited By ~ 3

Author(s):

Noor Ulain Rizvi ◽

Smita Kashiramka ◽

Shveta Singh

Keyword(s):

Interest Rate ◽

Credit Risk ◽

Interest Rates ◽

Banking System ◽

Interest Rate Risk ◽

Theoretical Background ◽

Capital Adequacy ◽

Basel Iii ◽

Rate Risk ◽

Net Interest Margin

The study explores the theoretical background of Basel III and investigates the drivers of interest rate risk and credit risk of banks in various parlances, namely, pre and post the financial crisis, phases of implementation and ownership on a sample of 36 listed banks in India. The findings indicate that the high capital adequacy requirement (CAR) exhibits a positive relation with gross non-performing assets (GNPAs) and net interest margin (NIM). This is perhaps one of the major drawbacks of Basel implementation, which may become a cause of lower GDP in the future as explained in the findings of the literature. Originality/value: This article is perhaps the first attempt of its kind to empirically examine the bank-specific, macroeconomic variables and link it with the Basel implementation in the Indian banking system for the time period 2002–2015. This study endeavours to enhance the existing empirical research in the field and give insights into the role of various factors on GNPAs and interest rates (with regards to Indian banks).

Download Full-text