The Effect of Interest Rate Spread on the Profitability of Nepalese Commercial Bank

Authors

  • Kabi Raj Acharya Patan Multiple Campus,Tribhuvan University
  • Surendra Kumar Vyas Rajasthan Technical University, Government Engineering College, Bikaner, India

DOI:

https://doi.org/10.3126/ppj.v2i2.52908

Keywords:

Commercial banksEPS, ROE, ROA, Interest rate spread

Abstract

This study examines the impact of the interest rate spread on the profitability of Nepalese commercial banks by using the data from mid-July 2011/12 to 2020/21.This study employs a quantitative approach to examine the effect on twenty-six commercial banks. The results show that interest rate spread positively affects firm performance. One percentage increase in interest rate spread increases return on assets by 0.137%, return on equity by 1.37%, and earnings per share by 8.11%.

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Author Biographies

Kabi Raj Acharya, Patan Multiple Campus,Tribhuvan University

Lecturer, 
Ph.D. research scholar Rajasthan Technical University, India

Surendra Kumar Vyas, Rajasthan Technical University, Government Engineering College, Bikaner, India

Professor

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Published

2022-12-31

How to Cite

Acharya, K. R., & Vyas, S. K. (2022). The Effect of Interest Rate Spread on the Profitability of Nepalese Commercial Bank. Patan Prospective Journal, 2(2), 73–83. https://doi.org/10.3126/ppj.v2i2.52908

Issue

Vol. 2 No. 2 (2022)

Section

Articles