000			03114nam a22002777a 4500
003			KOHA_MİRAKIL
005			20221226090059.0
008			201008b cy ||||| |||| 00| 0 eng d
040			_aCY-NiCIU _beng _cCY-NiCIU _erda
041			_ceng
090			_aYL 1767 _bO94 2020
100	1		_aOWENAZE, Grace Abıbatu
245	1	0	_aEFFECT OF NEGATIVE INTEREST RATE OF BANKS' MARGIN AND PROFIT/ _cGrace Abıbatu OWENAZE; Supervısor: Danbala Danju
300			_aVIII, 51 sheets; _bfigures, tables, _c30.5 cm _eCD.
336			_2rdacontent _atext _btxt
337			_2rdamedia _aunmediated _bn
338			_2rdacarrier _avolume _bnc
502			_aThesis (MSc) - CYPRUS INYERNATIONAL UNIVERSITY INSTITUTION OF GRADUATE STUDIES AND RESEARCH Internatıonal Bankıng and Fınance
504			_aIncludes bibliography sheets 43-48
520			_aABSTRACT Conventional macroeconomist are of the view that interest rate cannot be set below zero as no one will be willing to give out a dollar today if they expect less than a dollar in the future, however, studies have shown that several countries have implemented NIRP in recent times, for example, Switzerland set interest rate at -0.75% which happen to be the lowest so far. Therefore, this study examined how banks net interest rate margin (NIM) and return on asset (ROA) are influenced by the introduction of NIRP. This study focused on Organization for Economic Co-operation and Development (OECD) countries; this is to capture countries with a similar economic environment which is a requirement when applying the difference in difference model carried out in this study. The sample collect is from 29 OECD countries and the treated group includes Euro Area, Hungary, Sweden, and Switzerland. The sample size covers 6979 financial institutions and the period cover is from 2012-2016. The difference in difference method is used in this study; this method was chosen because it is widely used particularly in pieces of literature that deals with policy evaluation. Data were collected from the World Bank data series to evaluate the macroeconomic variables and to get balance sheet data for the evaluation of banks' performance within the period of analysis Orbis bank focus was sourced. The study discovered that NIRP effect's coefficient is negative, big and statistically significant at 0.01% for both ROA and NIMs, this suggest that countries that implemented NIRP witnessed a decrease in banks' return on assets and net interest rate margin of approximately 1.55% and 0.44% respectively, in comparison to countries that did not implement the net negative interest rate. Therefore, the study recommended that monetary policy makers should critically consider additional measures and put policies in place to cater for the increased level of fragility faced by the financial sector when NIRP is introduced. Keywords: NIRP, net interest rate margin, return on asset, OECD.
650	0	0	_aBanks and banking
650	0	0	_aInterest rates
700	1		_aSupervısor: Danju, Danbala _91770
942			_2ddc _cTS
999			_c141059 _d141059