2024, Vol. 5, Issue 2, Part G
Bank regulation and profitability of commercial banks in Nepal
Author(s): Madan Kandel, Dhundi Raj Bhattarai and Jagat Timilsina
Abstract: Purpose of this study is to measure the impact of banking regulations: bank capital, loan loss reserve, weighted average spread rate, base rate, and broad money supply on net profit after tax of commercial banks in Nepal. Descriptive, correlational, and casual comparative research design used in this study. This study used secondary sources of data. Data were collected from annual audit reports. Twenty-six and nineteen commercial banks before and after merger from fiscal year 2012/13 to 2022/23 data used in this study. Out of total commercial banks, Rastriya Baanijya Bank is 100 percent government owned bank excluded in this study. Descriptive statistical tools: mean, minimum value, maximum value, standard deviation, and coefficient of variation used in this study. Correlation analysis and multiple regression analysis inferential statistical tools used in this study. This study showed that highest scattered data is: loan loss reserve, bank capital, net profit after tax, broad money supply, base rate, and weighted average spread rate respectively. There is direct relationship of Nepal Rastra Bank’s regulations factors: bank capital, broad money supply, and loan loss reserve with net profit after tax of commercial banks in Nepal. There is positive impact of bank capital and broad money supply on net profit after tax of commercial banks in Nepal but there is negative impact of base rate on net profit after tax of commercial banks in Nepal.
DOI: 10.22271/27084515.2024.v5.i2g.401
Pages: 577-580 | Views: 86 | Downloads: 31
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How to cite this article:
Madan Kandel, Dhundi Raj Bhattarai, Jagat Timilsina. Bank regulation and profitability of commercial banks in Nepal. Asian J Manage Commerce 2024;5(2):577-580. DOI: 10.22271/27084515.2024.v5.i2g.401
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