Abstract

This study examines the impact of the interest rate spread on the profitability of Nepalese commercial banks by using the data from mid-July 2011/12 to 2020/21.This study employs a quantitative approach to examine the effect on twenty-six commercial banks. The results show that interest rate spread positively affects firm performance. One percentage increase in interest rate spread increases return on assets by 0.137%, return on equity by 1.37%, and earnings per share by 8.11%.

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