Antecedents and Consequences of Interest Rate Spread: Case of Pakistan
Journal: Pakistan Journal of Humanities and Social Sciences (Vol.10, No. 1)Publication Date: 2022-03-31
Authors : Javed Iqbal; Anam Batool; Asad Ali;
Page : 315-323
Keywords : ;
Abstract
Interest rate spread plays a crucial role in the monetary policies of the government and has a substantial impact on the economy. This article examines the bank-specific determinants of interest rate spread which include capital adequacy ratio, non-performing loans, and overhead expenses. To analyze the impact of Interest Rate Spread (IRS) on the economy, specifically, change in GDP growth rate, change in the inflation rate, change in industrial growth rate, change in foreign exchange reserves, and change in the stock market index, while ROA, ROE, and NIM are used as profitability measures of the banking sector. Data from 2011-2020 is collected and analyzed through a linear regression model, which gives significant results as twenty-two out of twenty-four hypotheses are accepted. These results will help policymakers to better formulate monetary policies and will provide the basis for new insight into IRS.
Other Latest Articles
- Exploring the Challenges of Digital Literacy among Students with Visual Impairment Studying at Higher Education Level
- Discovering the Socio-Economic, and Environmental factors of Health Expenditure: Case Study of Regions
- Sociological Analysis of Women Participation in Agricultural Activities in District Rajanpur Punjab, Pakistan
- A Correlation of Socio-economic Determinants and Food Security Status in Pakistan
- An Analysis of Students’ Academic Self-Concept in English as Predictor of Their Academic Performance
Last modified: 2022-06-13 22:30:23