Journal of Accounting and Investment
Vol. 25 No. 3: September 2024

Investigating the influence of monetary policy on the balance sheet performance of commercial banks

Kalua, Denis (Unknown)
Lipunga, Andrew Munthopa (Unknown)
Banda, Fredrick (Unknown)



Article Info

Publish Date
04 Sep 2024

Abstract

Research aims: The study investigates the influence of monetary policy on the balance sheet performance of commercial banks in Malawi.Design/Methodology/Approach: The study employed an explanatory research design using time series data obtained from financial reports of commercial banks and economic reports published by the Reserve Bank of Malawi from 2012 to 2022. Regression analyses were conducted to establish the influence of monetary policy on balance sheet performance (loan and overdraft growth).Research findings: The results suggest that the monetary policy instruments, namely, the liquidity reserve requirement (LRR), Lombard rate, policy rate, and open market operations, have insignificant influence on the loan and overdraft growth in commercial banks in Malawi.Theoretical contribution/Originality: This implies that these monetary policy tools are not the exterior determinants of the balance sheet performance of commercial banks in Malawi.Research limitation: The study used a single measure of the balance sheet performance of commercial banks.

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Journal Info

Abbrev

ai

Publisher

Subject

Economics, Econometrics & Finance

Description

JAI receives rigorous articles that have not been offered for publication elsewhere. JAI focuses on the issue related to accounting and investments that are relevant for the development of theory and practices of accounting in Indonesia and southeast asia especially. Therefore, JAI accepts the ...