Η νομισματική πολιτική και η κερδοφορία των τραπεζών
Market interest rates and bank performance
KeywordsΝομισματική πολιτική ; Κερδοφορία τραπεζών ; Δεδομένα πάνελ ; Unit root test ; Granger causality test ; GMM
The aim of this paper is to examine the relationship and influence of the intervention rates set by central banks on the profitability of other banks. In particular, this relationship between interest rates and banks’ profitability of US and UK banks during the period 2013-2017 is being investigated. The above economies are two of the world's most powerful economies and have a significant impact on the evolution of the economy of the rest of the world. The impact of monetary policy on banks' profitability has sparked the interest of many researchers as it plays an important role in the development of the financial system and hence in economic growth. The analysis was performed using panel data and the methodology used was the Generalized Method of Moments. The question posed in this paper is whether there is a link between the profitability of banks and monetary policy expressed through intervention rates, and if there is a link to find out what kind of relationship it is, a positive or a negative one. Based on the following empirical analysis, we found that there is a negative relationship between the long-term and short-term interest rate and profitability of the Banks.