Authors :
Zamzam Hassan Mohamed
Volume/Issue :
Volume 7 - 2022, Issue 1 - January
Google Scholar :
http://bitly.ws/gu88
Scribd :
https://bit.ly/33C5R9s
DOI :
https://doi.org/10.5281/zenodo.5879048
Abstract :
The purpose of this study is to look into the
impact of Somalia's monetary policy on the financial
stability of the country's commercial bank and to
determine the impact of Open Market Operations on the
financial stability of Somalia's commercial banks. This
study's goal is to investigate the impact of Somalia's
central bank interest rate on commercial bank stability,
as well as to analyze the impact of reserve ratio
requirements on Somali commercial banks' financial
stability, and also the impact of internal and
macroeconomic factors on Somali commercial banks'
financial stability. The study concentrated on 18 wellknown Somali banks. Data for the study is gathered from
published financial statements of Somali commercial
banks, monetary policy statements, relevant publications
from the Central Bank of Somalia, and other sources.
Commercial bank book values are obtained for the years
between 2014 and 2020, interest revenue and expense for
each year, the weighted average of the central bank's rate,
the weighted average of its cash reserve ratio, and the
weighted average of its 364 Treasury Bill rates are
collected. SPSS and other descriptive statistical
techniques aided the researcher in characterizing the data
and determining how much of it is used. The T-Bill Rate
is found to have a positive effect on the financial
soundness of Somali commercial banks. As a result, the
researchers concluded that T-Bill rates had a beneficial
but limited impact on the financial health of Somalia's
commercial banks.
Keywords :
Cash Requirement Reserves, Gross Domestic Product, Return On Assets, Statutory Liquidity Requirement.
The purpose of this study is to look into the
impact of Somalia's monetary policy on the financial
stability of the country's commercial bank and to
determine the impact of Open Market Operations on the
financial stability of Somalia's commercial banks. This
study's goal is to investigate the impact of Somalia's
central bank interest rate on commercial bank stability,
as well as to analyze the impact of reserve ratio
requirements on Somali commercial banks' financial
stability, and also the impact of internal and
macroeconomic factors on Somali commercial banks'
financial stability. The study concentrated on 18 wellknown Somali banks. Data for the study is gathered from
published financial statements of Somali commercial
banks, monetary policy statements, relevant publications
from the Central Bank of Somalia, and other sources.
Commercial bank book values are obtained for the years
between 2014 and 2020, interest revenue and expense for
each year, the weighted average of the central bank's rate,
the weighted average of its cash reserve ratio, and the
weighted average of its 364 Treasury Bill rates are
collected. SPSS and other descriptive statistical
techniques aided the researcher in characterizing the data
and determining how much of it is used. The T-Bill Rate
is found to have a positive effect on the financial
soundness of Somali commercial banks. As a result, the
researchers concluded that T-Bill rates had a beneficial
but limited impact on the financial health of Somalia's
commercial banks.
Keywords :
Cash Requirement Reserves, Gross Domestic Product, Return On Assets, Statutory Liquidity Requirement.
