This paper examines the Comparative Assessment of Financial Assets and Equity on Bank Lending rate among Deposit money Banks in Nigeria. The research uses the qualitative approach to the study wherein secondary data sources like annual reports, financial statements, and related literature were used. The results indicate that adequate financial analysis can help credit risk management, and minimize the number of non-performing loans as well as to improve the loan evaluation of deposit money bank which will result in the better financial output. A set of key financial ratios, credit evaluation ratios, and lending results reveal that strategic applications of financial analysis provide the Deposit Money Bank, Nigeria with strength in its lending decisions and general profitability. For effective bank lending, this paper proposes the constant upgrading of modern financial analysis equipment and employees and equip them with capacity building. The paper would be beneficial to the literature as it seeks to shed light on the contribution of financial analysis as an important asset of risk prevention and successful lending in Nigerian banks.

In the branch banking system, branches with surplus funds cannot be profitable without an internal fund transfer pricing (FTP) system. Therefore, a dynamic FTP model is critical to enhance a bank’s sustainability. This article has designed a market-oriented multiple FTP model by factoring in liquidity risk, market interest rate, credit demand, and portfolio diversification. The FTP rates are estimated using the 151 branch-level daily data of a bank in India. We reduced the endogeneity issue related to variable selection with the 2SLS system equation. The findings suggest that dual-functioning branches are profitable if they reduce their fund borrowings from the corporate head office (HO). Corporate treasury provides liquidity support to banks, but their profit gets impacted by the increase in the policy and HO-transfer rate. The study showed that corporate spread is significantly affected by increased liquidity cost and market borrowing rate. It is also empirically established that internal FTP pricing may hamper branches’ earnings when branch managers mobilize funds beyond the cost of lending as per FTP rates. The dynamic FTP model is linked to the yield curve, making it market oriented and enabling managers to price products effectively. JEL Codes: G21, D02

This paper examines how discretionary U.S. fiscal policy episodes since 1975 influence macroeconomic outcomes and financial conditions, with an application to forecasting the short-term effects of a comprehensive package, such as One Big Beautiful Bill. An episode-based quarterly fiscal shock series is constructed from observable policy outlays scaled by nominal GDP, and dynamic responses are estimated using a local projection framework across multiple horizons. The results show a front-loaded pattern: output responds strongly to impact, remains positive in the next quarter, and then reverses as one-time transfers dissipate and payback dynamics emerge. When the target variable is replaced with financial indicators, the results reveal that while consumption growth rises immediately and then tapers off rapidly, the federal funds rate and bank lending rates decline in the aftermath of large transfer episodesconsistent with easing financial conditions during stimulus periods. Overall, the results suggest that OBBBA-like programs are most effective for quick stabilization, but to keep the benefits functioning, persistence mechanisms should be incorporated within.

ABSTRACT This study examines the effectiveness of two macroprudential policies—stress DSR and upward adjustment of risk weights—in curbing the growth of housing mortgage loans in Korea. Using panel data from major Korean banks, the analysis shows that stress DSR significantly reduces mortgage loan supply by tightening borrowers’ lending limit s, while the upward adjustment of risk weights does not have a statistically significant effect on mortgage lending. Additionally, implementing stress DSR is associated with higher lending rates and an increase in net interest margin (NIM), indicating enhanced bank profitability. Overall, the findings suggest that stress DSR is an effective measure to contain mortgage loan growth, but may lead to higher borrowing costs for consumers.

Abstract The study investigates the determinants of bank non-performing loans (NPL) in European and African countries, focusing on 32 European and African countries from 2010 to 2021. The results based on the two-stage least squares regression methodology show that the number of commercial bank branch, bank liquid reserves to bank assets ratio, inflation rate, exchange rate, real interest rate and the lending rate are significant determinants of bank NPL in the full sample. Size of domestic private credit, bank capital to asset ratio, bank liquid reserve to bank asset ratio, unemployment rate, inflation rate, exchange rate, real interest rate and lending rate are significant determinants of bank NPL in European countries. Bank capital to asset ratio, bank liquid reserve to bank asset ratio and inflation rate in Africa are significant determinants of bank NPL in African countries. The implication of the results is that the determinants of bank NPL in European countries are not necessarily the drivers of bank NPL in African countries.

Bank Opacity and Deposit Rates

This empirical study investigates the determinants of lending interest rates in Nepalese commercial banks, utilizing panel data spanning fiscal years 2073/74 to 2080/81. Employing multiple linear regression and correlation analyses, the research examines the influence of key financial variables—namely, interest rate on deposits, impairment charge rate, operating expenses, and non-operating expenses—alongside macroeconomic indicators such as inflation and economic growth. The findings reveal that the interest rate on deposits exerts a statistically significant positive effect on lending rates, indicating its central role in banks’ pricing strategies. Inflation also demonstrates an important moderating influence, suggesting that lending rates are responsive to macroeconomic price dynamics. Conversely, impairment charges, operating and non-operating expenses, and economic growth did not exhibit significant linear associations. The financial model accounted for 92.6% of the variance in lending rates, reflecting high explanatory power. These results offer valuable insights into the cost-driven nature of interest rate formation and the sensitivity of lending behavior to inflation, with implications for monetary policy and financial regulation in emerging economies.

The planned discontinuation of the Jakarta Interbank Offered Rate (JIBOR) publication by Bank Indonesia, effective January 1, 2026, has significant implications for the financial industry, particularly for life insurance contracts that reference JIBOR. Therefore, a credible and economically equivalent Alternative Reference Rate is needed. This paper addresses the discontinuity from two perspectives, forecasting methods for accurately predicting JIBOR post-discontinuation and analyzing the transition to four Alternative Reference Rates: Indonesia Overnight Index Average (IndONIA), BI Rate, LPS Rate, and the average deposit rate of state-owned banks (Bank Himbara). The methodology involves historical data analysis over the past five years, following the National Working Group on Benchmark Reform (NWGBR) recommendations. Findings show that for forecasting, the Autoregressive Model with Box-Cox transformation has the smallest error compared to actual JIBOR. Among Alternative Reference Rates, IndONIA has the smallest error compared to actual JIBOR. This paper is expected to provide insights for financial industry stakeholders affected by the JIBOR discontinuity, including insurance products using JIBOR as a Reference Rate in cash value calculations

This study examines how changes in India’s policy repo rate affect the macroeconomy and various business sectors up to December 2025. The analysis uses recent data from RBI, government sources, IMF, and research reports. We review India’s monetary policy cycle – sharp rate hikes in 2022-23 followed by significant easing in 2025 – and assess transmission through interest rates, credit, and asset markets. Our sectoral analysis covers MSMEs, real estate/construction, banking and NBFCs, consumer goods and consumption, and manufacturing. We find that by late 2025, inflation had fallen well below RBI’s target band (≈2% vs 4% target), allowing cumulative repo cuts of 125 basis points since Feb 2025. These cuts lowered borrowing costs, expanded credit (MSMEs +12% YoY), and supported demand in housing and consumer durables. However, transmission remains incomplete due to factors like sticky deposit rates and fiscal impulses, prompting policy actions (e.g. linking MSME loans to external benchmarks. We present comparative tables of policy decisions and macro indicators, and charts illustrating inflation and growth trends. Our findings show that while policy easing in 2025 helped sustain high GDP growth (7–8% YoY), sectoral impacts vary: housing demand and rural consumption benefited strongly, manufacturing saw modest gains, and banks/NBFCs faced margin pressure despite robust loan growth. The paper concludes that continued monitoring of transmission channels is vital, especially as India pursues balanced growth and price stability.

This paper assesses how macroeconomic conditions shape Indonesia’s oil and gas (O&G) import dependency over 2000–2024. Using an explanatory, single-country, annual time-series design, we estimate a linear log-level model via Maximum Likelihood, relating oil and gas import value to real GDP growth, the rupiah time-deposit interest rate, and CPI inflation. To retain parsimony, the baseline omits controls, results are interpreted as conditional associations. Findings show growth is positive and significant (β=0.052, p=0.003), the deposit rate is negative and significant (β=−0.050, p<0.001), while inflation is small and not significant (β=−0.004, p=0.608), model fit is R²=0.620. Semi-elasticities imply that a 1-pp increase in growth is associated with ≈5.2% higher import values, whereas a 1-pp rise in the deposit rate is associated with ≈5.0% lower values. These results indicate an income channel under short-run supply inelasticity and a dominant aggregate-demand/financing-cost channel that outweighs appreciation-induced cheap-import effects. Policy implications for a blue–green economy include coordinated monetary–trade–energy governance, disciplined procurement and hedging, and structural measures energy efficiency, transport electrification, and fuel-mix diversification so expansions do not mechanically raise fossil import dependence. Limitations include the absence of key controls (exchange rate, oil prices, domestic production).

Bank branch proximity and deposit rate dynamics

This study analyses strategies to protect asset purchasing power under a low-interest, persistentinflation environment. By using market data of China and establishing finance models, the Fisher equation, CAPM and EPV to calculate the real returns from bank deposits, policy-based bonds and equities (illustrated by Guizhou Moutai). Empirical inputs include a 1.28% forecast inflation rate (2025–2030), current deposit rate and bond yields, and historical equity returns (2017–2021). After inflation adjustment, results indicate that deposits offer near-zero real returns (~0.02%), policy-based bonds provide a modest positive real yield (~0.38%), while equities deliver the highest real return (~8.27%), but with substantial volatility and drawdown risk. The study also highlights limitations of standard models in an inflationary background, especially CAPM’s fixed risk-free assumption and EPV’s static discounting, and recommends methodological enhancements to better capture downside risk such as time-varying discount rates, dynamic risk premiums, and stochastic techniques (Monte Carlo simulations, Value-at-Risk). Practically, investors should minimise idle cash, use bonds for preservation and adopt diversified multi-asset strategies that accept calibrated equity exposure to preserve purchasing power.

ABSTRACT This paper focuses on a series of increases in the mortgage rate in China and investigates its impacts on household consumption. Based on granular diary data, our difference‐in‐differences estimations imply that compared with that of homeowners without mortgage obligations, the average propensity of mortgagors to consume decreases by 2.2 and 2.9 percentage points after the announcement and reset of mortgage rates, respectively. The results are mainly driven by precautionary motives associated with unanticipated shocks in lending rates. Hence, the sudden adjustment of de facto policy‐controlled rates has higher welfare costs than that of market‐driven lending rates.

his study investigated the effect of statutory reserve (SRR) on the interest rates in commercial bank, with focus on setting the deposit and loan interest rates and also the effectiveness of SRR in managing the commercial banks general interest rate. Using a mixed method approach, more than five different commercial banks were engaged in this study. The findings of the study revealed that a continuous increase in the central bank SRR has no significant effect on bank deposit interest rates. (p-value-0.1484, χ²= 13.32, 9 df). However, moderate changes in interest rate had influence on the adjustment of the deposit interest rate. This implies that while banks submit to changes in SRR, the elasticity is limited at some point as they consider other factors such as liquidity and competitor offers rather than the rate of SRR. In the similar way, the statutory reserve ratio was found to have a significant effect on Commercial Banks Loans and Advances. The study found that 60% of the commercial banks increase loan interest rates when SRR increases. Hence the study established a significant positive relationship between Commercial Banks Loan rates and SRR changes (p-value- 1.32e-05, S.d -0.966, R2 0.063). The study revealed that SRR is an effective monetary tool policy only at a certain range of rates for regulating the commercial banks (p-value-0.0032, χ² =24.79 at df = 9). The study therefore concluded that statutory reserve ratio has significant effect on both loan and deposit rates changes but a continuous increase in the ratio tends to become non responsive to both deposit and loan rates due to other considerations such as availability of liquidity and competition in the industry. The study recommended that central bank should know the appropriate SRR corridor that would control banks rates and to increase the trading and banking book, banks should develop strategies to attract private sector deposits, to fill the void created by the implementation of the SRR and also come up with innovative solutions. The study further recommended that the Ministry of Finance and the regulator should consider allowing Commercial Banks involved in revenue collection from other sources apart from traditional banking services.

This study employs the Nonlinear Autoregressive Distributed Lag (NARDL) methodology to examine how asymmetric exchange rate variations influence inflation in Nigeria, covering the period from early 1992Q1 to late 2024Q4. The theoretical framework draws from purchasing power parity (PPP) and the law of one price (LOP) principles. The research aimed to analyze both immediate and extended temporal relationships between inflation and exchange rate movements, alongside other economic indicators. Using bounds testing for co integration, the study established a sustained equilibrium relationship among the examined variables. Results reveal that exchange rate fluctuations both strengthening and weakening demonstrate minimal and statistically insignificant positive effects on inflation across both timeframes, suggesting no asymmetric relationship exists. Additionally, the analysis shows that crude oil prices, monetary supply, and lending rates maintain significant inverse relationships with inflation over extended periods, while GDP exhibits significant negative correlations with price levels. Import levels display an insignificant positive correlation with inflation and demonstrate no substantial impact throughout the observation period. Given these outcomes, the research recommends that Nigerian monetary policymakers adopt an integrated strategy emphasizing exchange rate steadiness, careful monetary supply control, and structural economic transformations to enhance local production capacity. A comprehensive approach combining inflation management and macroeconomic stability measures would facilitate sustainable outcomes

ABSTRACT This paper investigates the overall effect of the European Central Bank's (ECB's) unconventional monetary policies (UMPs) implemented since 2008 on euro area bank retail lending and deposit rates offered to households and nonfinancial corporations. To do so, we use an analytical approach that combines the estimation of the cumulative effects of UMP on key determinants of bank funding costs through daily event study analysis, together with a monthly estimation of the pass‐through to retail rates. In counterfactual simulations, we quantify the full effect of the ECB's UMPs implemented since 2008 on retail lending and deposit rates and systematically explore differences in their effects over time and across euro area countries (France, Germany, Italy and Spain). Our results show that the ECB's UMPs—particularly the measures launched since 2012—significantly lowered retail lending and deposit rates in Germany, France, Spain and in particular in Italy.

The study examines critical factors that may affect peer-to-peer (P2P) lending adoption for Indian micro, small and medium enterprises (MSMEs). To determine the purpose of the study, a conceptual framework is developed by extending the Unified Theory of Acceptance and Use of Technology (UTAUT 2) theory and incorporating an additional construct of "trust". Data for the study were collected from registered Indian MSMEs through closed-ended questionnaires. The responses were analyzed using structural equation modelling (SEM) in AMOS. The study's findings indicate that behavioral intention towards the adoption of P2P lending is strongly influenced by performance expectancy (PE), price value (PV), and trust (TRU). The study suggests that managers of P2P lending platforms should enhance performance expectancy by ensuring financial access to applicants through a higher loan sanction ratio and lower loan denial rates. The price value shall be enhanced for the borrowers by providing economic benefits through cost-effective loans. Moreover, the managers of the platforms shall reach out to the MSMEs through field agents and provide first-hand experience on accessing the platform to build trust in the platforms. In addition, the study also provides valuable insights to regulators and policymakers to improve the adoption rate of P2P lending amongst Indian MSMEs. Overall, the study's results offer a comprehensive insight into the factors affecting the adoption of P2P lending among Indian MSMEs.

Abstract This study examines the asymmetric spillover effects of monetary policy tightening in the United States and China on a small, dual-exposed emerging Vietnam economy. It investigates how changes in the Federal Reserve’s federal funds rate and the People’s Bank of China’s benchmark lending rate transmit through financial and trade channels to shape Vietnam’s macroeconomic outcomes. Using a Bayesian Vector Autoregressive model and quarterly data from 2005 to 2024, we estimate Vietnam’s macroeconomic responses to policy rate shocks originating from the Federal Reserve and the People’s Bank of China. Our results confirm that United States monetary tightening induces immediate but statistically insignificant depreciation of the Vietnamese dong and sharp, reversible portfolio outflows, with muted impacts on GDP and inflation due to effective State Bank of Vietnam interventions. In contrast, Chinese rate hikes generate significant short-term import-price pressures, raising CPI by as much as 1.7 % and prompting a stronger State Bank of Vietnam policy response. Neither source of external tightening yields lasting output effects, suggesting that Vietnam’s domestic policy framework effectively buffers adverse impulses. These findings underscore the imperative for monetary authorities to employ an integrated policy toolkit capable of distinguishing overlapping external shocks. This study contributes a unified empirical framework that disentangles simultaneous spillovers from the world’s two largest monetary powers, offering generalizable guidance for policy design in similarly dual-dependent emerging markets.

This study took the end user customer assessment of the impact of changes in the monetary policy rate on Absa Bank’s financial performance. The study used a quantitative approach with a 100 sample size. The study aimed at establishing if strategic changes in the monetary policy rate indeed affect bank customers decisions on demand for loans, willingness to incur costs that would make banks profitable and deposit volume decisions. Findings were that demand for loans was highly inelastic to changes in interest rates where 80% of customers reported that they would still apply for loans even after interest hike and 46% admitted that they do not consider bank interest rates when applying for loans. For deposits, response to interest rates changes varied with different customer type with retail and individual type of customers being highly responsive to changes in deposits rates (45%) followed by corporate clients (25%). Government agencies and funded groups were found to be non-responsive to deposit interest rate changes. This made interest rate deposit elastic for retail and individual clientele (Pearson chi-square test result χ² = 40. p = 0.000). The bank’s profitability was dependent upon these adjustments (p = 0.001). The study concluded that changes in interest rates were highly inelastic on loans and fairly elastic on deposits, bank profit depends on the net effect of the two rates. The study recommends that to achieve financial stability both the bank and the regulator should set optimum interest rates clearly targeting the right side of the market.

Local Credit Union Competition and Bank Deposit Rates: The Role of Covid-19