Symmetry test of the effect of monetary policy on the performance of commercial banks in the Mena region

Abstract

The banking sector is an important sector in the economy; Because the financial needs of other sectors are met by the banking system. Thus, macroeconomic performance depends on the performance of the banking sector. The purpose of this paper is to test the symmetry of the effect of monetary policy on the performance of commercial banks (profitability with return on assets and net profit margins and efficiency with cost-to-income ratio) as well as GDP, volume of facilities granted by state and non-state banks in countries. (MENA) has been reviewed. For this purpose, the threshold vector autoregression method (TVAR) and quarterly data for 2013-2018 were used. Based on the results, the effects of positive and negative monetary and credit shocks on asset returns, net profit margin, cost-to-income ratio, GDP, volume of facilities granted by state and non-state banks in terms of direction and intensity The effectiveness of these two regimes is different. Therefore, it can be concluded that the effect of monetary policy and inflation on the above variables is asymmetric in both high and low production regimes.

Keywords

• banking performance
• monetary policy
• banking efficiency
• mena region