Quick Access


Bu Dergi DOI ve Crosscheck üyesidir


Abstract


THE EFFECT OF CENTRAL BANK’s INTEREST RATE DECISIONS ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS1

Central Bank rate decisions affect the financial performance of commercial banks. It is known that fundamental problems such as stable growth and external balance are particularly affected by the volatility in exchange rates. Central Bank intervenes againts exchange rate volatility with interest rate decisions and aims to provide stability. When the current account deficit of countries with current account deficit problems increases more, it is expected that employment will increase and unemployment rates will decrease. Thus, as I have briefly mentioned in the findings section of the article, there is an economic fluctuation. Therefore, since the change in interest rates directly concerns the economy of the country, developing countries are also reducing interest rates by applying tight monetary policies. Although it has been decided to reduce the auction interest rate many times in the policy steps taken in 2020, suggestions for weekly repo still continue. There are restrictions on funding in this period. Banks should proceed with precaution when providing funding. It is not easy to achieve price stabillity with short term inflation targeting. Since the increasing unemployment rates in recent years bring along the employment problem, the government needs to produce more work opportunities in order to increase the employment rates. Short-term inflation targeting also creates negative effects on the current account balance. In this study, the power of The Central Bank's interest rate decisions to explain the financial performance of commercial banks was investigated. The data set used in the study is included the period between 2009-2019. For this determination, the model was prepared using regression analysis. Correlation matrix was calculated via Microsoft Excel. After that, the normal distribution test was applied to the variables separately. The model was not statistically significant.



Keywords
Interest corridor, CDS, ROM



References

Advanced Search


Announcements


Address :Russian Science Academy Mahaçkala / Russian Federation
Telephone :+90 539 673 66 66 & +90 543 373 80 81 Whatsapp Fax :
Email :ssssjournal@gmail.com

Web Yazılım & Programlama Han Yazılım Bilişim Hizmetleri