Journal Article Published 2024

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

Indexed 1 year ago • 1338 Views

Assoc. Prof. Andrew Lipunga

Co-author

Accountancy and Finance

14 total publications

Andrew Munthopa Lipunga is an Academic in the Department of Accountancy and Finance of the School of Business and Economic Sciences. Has been a faculty member since 2007. He is a Fellow of the Association of Chartered Certified Accountants (ACCA) and...

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Primary Author Denis Kalua

Co-Authors Assoc. Prof. Andrew Lipunga, Mr. Fredrick M. Banda

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.

Year of Publication 2024

External Digital Object URL Access Publisher / External Source

Journal Name Journal of Accounting and Investment

Volume 25

Issue 3

Page Numbers 857-873