Quantified Impact Of Market Interest Rates On Commercial Banks’ Business Mix

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04274644%3A_____%2F19%3A%230000482" target="_blank" >RIV/04274644:_____/19:#0000482 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/68407700:21630/19:00333101

Výsledek na webu

<a href="https://www.jois.eu/?en_vol.-12-no-2-2019,57" target="_blank" >https://www.jois.eu/?en_vol.-12-no-2-2019,57</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.14254/2071-8330.2019/12-2/16" target="_blank" >10.14254/2071-8330.2019/12-2/16</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Quantified Impact Of Market Interest Rates On Commercial Banks’ Business Mix

Popis výsledku v původním jazyce

The main aim of this paper is to measure the influence of market interest rate on commercial banks’ business mix. The global character of banking business and the conditions of the world economy have caused extremely low interest rates at the loan and mortgage market in Czech Republic. Low interest rates generate cheaper money and make loans and mortgages easily available since 2014 where the mortgage interest rate dropped below the level of 2.5%. The first aim of this research is to evaluate the effect from different types of interest rates on two types of loan products in this five-year period (2014–2018). The second aim of this research is to analyse the effect from the selected interest rates in Czech Republic on profitability of the selected commercial banks. Lastly, profitability behaviour of the banking sector in Czech Republic and its relation with the selected interest rates and bank-specific determinants has been examined. Our final results state that the consumption interest rate, mortgage interest rate, deposit interest rate, PRIBOR 2w-repo, inflation rate, disposable income, unemployment, GDP and the real effective exchange rate (REER) have significant influence on the volume of mortgage loans and consumer loans too. The authors find that banks´ ROE is affected by profit margin and liquidity, but it is negatively related to financial leverage and the number of provided loans. Lastly, the consumer loan volume has a negative influence on the return on equity. The results show the positive relationship between ROE and mortgage loan volume but negative effect of consumer loan volume on the return on equity.

Název v anglickém jazyce

Quantified Impact Of Market Interest Rates On Commercial Banks’ Business Mix

Popis výsledku anglicky

The main aim of this paper is to measure the influence of market interest rate on commercial banks’ business mix. The global character of banking business and the conditions of the world economy have caused extremely low interest rates at the loan and mortgage market in Czech Republic. Low interest rates generate cheaper money and make loans and mortgages easily available since 2014 where the mortgage interest rate dropped below the level of 2.5%. The first aim of this research is to evaluate the effect from different types of interest rates on two types of loan products in this five-year period (2014–2018). The second aim of this research is to analyse the effect from the selected interest rates in Czech Republic on profitability of the selected commercial banks. Lastly, profitability behaviour of the banking sector in Czech Republic and its relation with the selected interest rates and bank-specific determinants has been examined. Our final results state that the consumption interest rate, mortgage interest rate, deposit interest rate, PRIBOR 2w-repo, inflation rate, disposable income, unemployment, GDP and the real effective exchange rate (REER) have significant influence on the volume of mortgage loans and consumer loans too. The authors find that banks´ ROE is affected by profit margin and liquidity, but it is negatively related to financial leverage and the number of provided loans. Lastly, the consumer loan volume has a negative influence on the return on equity. The results show the positive relationship between ROE and mortgage loan volume but negative effect of consumer loan volume on the return on equity.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50200 - Economics and Business

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2019

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Journal of International Studies

ISSN

2071-8330

e-ISSN

2306-3483

Svazek periodika

12

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

PL - Polská republika

Počet stran výsledku

12

Strana od-do

258-269

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85069862563