The Impact of the monetary policy on the performance of deposit money banks in MENA Region

Abstract

To support the bank to act as a buffer if the situation is adverse, ownership funds would amount to capital. Moreover, higher bank balances reduce the likelihood of trouble. Campaign capital adequacy is the degree to which banks need to deal with uncertainties such as credit, market and operational risk to withstand potential losses and safe debtors. Banks, credit rates, cash balance, and legal proportions were the monetary factors, each of which individually regressed to the performance of deposit money. The loan rates have been found to have a significant, positive effect on banks' profitability, which shows a drop in lending rates which reduces the banks' profitability. Bank rates, cash balance ratios, and regulatory ratios have also been detected negatively impacting bank profitability. They also found that the connection of bank profitability to monetary policy tools in the Private Sector was united in credit, bank rates, cash balance ratios and statutory ratios.  The research stated a direct relationship between monetary policies and financial performance.