Record Details

Determinants of Net Interest Margins in Emerging Markets:A Generalized Method of Moments Approach

Journal of Quantitative Methods

View Archive Info
 
 
Field Value
 
Title Determinants of Net Interest Margins in Emerging Markets:A Generalized Method of Moments Approach
 
Creator Khalil, Adeela
Farooq, Umar
 
Description The study focuses on checking the effect of Leverage Risk, Credit Risk, Implicit Interest Payment, Non-Interest Bearing Reserve and Management Efficiency on Net Interest Margin of the banks of Pakistan, India and Bangladesh. This study applies Generalized Method of Moment GMM and panel regression model to explore the impact of risk factors on net interest margin which banks face in providing immediacy. A descriptive analysis of data was performed to get sample characteristics. A set of 33, 37 and 18 banks from Pakistan India and Bangladesh respectively was selected as sample. The data were collected from annual reports of selected banks. The results show that net interest margin has negative and significant effect on the credit risk. Implicit interest payment has positive and significant impact on net interest margin. Leverage risk has significant and negative effect on the net interest margin. Management efficiency has positive and significant effect on the net interest margin. Non-interest bearing reserve also positively and significantly affects the net interest margin. These results recommend the financing policy that banks should consider specific ratios which may increase the net interest margin and also reduce the credit risk.
 
Publisher Department of Quantitative Methods, School of Business and Economics, University of Management and Technology, Lahore Pakistan
 
Date 2019-03-13
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://ojs.umt.edu.pk/index.php/jqm/article/view/34
10.29145/2019/jqm/030103
 
Source Journal of Quantitative Methods; Vol 3 No 1 (2019): February; 39-56
2522-2260
2522-2252
10.29145/JQM/31
 
Language eng
 
Relation https://ojs.umt.edu.pk/index.php/jqm/article/view/34/29
 
Rights Copyright (c) 2019 Adeela Khalil, Umar Farooq
http://creativecommons.org/licenses/by/4.0