The effect of credit risk and exchange rate on weighted interest rate margin (Case study: Private Banking Sector in Syria)

The objective of this study was to determine the factors affecting the weighted interest rate margin in the traditional commercial banking sector within the Syrian banking industry. To achieve this, the researcher collected the necessary data on the commercial banks listed in Damascus Securities exchange for the period 2008-2014 and analyzed them statistically. The behavior of a depended variable that reflect the weighted average of interest rate margin to deposits and credit facilities (loans, overdraft) was examined. Also the independent variables that reflect credit risk, financing risk and some economic factors were examined. The independent variables are the net exposures to direct credit risk, the credit default rate, ratio of financial leverage and the exchange rate of the Syrian Pound against the US Dollar. The multiple linear regression models of the studied variables were used.

Determinants of Bank Interest Rate Margins (Empirical study on the some commercial Bank in Syria)

This paper aimed to identify the determinants of bank net interest rate margins within the context of the Syrian banking industry. To achieve the objectives of the study the data has been collected from those commercial banks listed on the Damascus exchange stock (DES) during 2006-2010. The sample used in this study consists of a panel data set for sixe commercial banks. The empirical specification focuses on the reported net interest rate margin that is assumed to be a function of operation cost, owner's equity, loans-to-asset proxy, size factor, market share, growth rate, inflation factor, exchange rate. For testing purposes, panel data analysis is used by employing three alternative models to estimate the parameters of the model, the Pooled simple regression, the Fixed Effect Model and the Random Effect Model.