Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062

Conference List

Financial Risk and Management Reviews

March 2019, Volume 5, 1, pp 1-9

Profitability of Commercial Bank on Interest Rate Deregulation

Tijjani Muhammad


Abatcha Melemi

Tijjani Muhammad 1

Abatcha Melemi 2

  1. Department of Islamic Studies, (Islamic Banking and Finance) Federal University, Gashua Yobe State, Nigeria 1

  2. Department of Economic and Development Studies Federal University, Gashua Yobe State, Nigeria 2

Pages: 1-9

DOI: 10.18488/journal.89.2019.51.1.9

Share :

Article History:

Received: 03 December, 2018
Revised: 08 January, 2019
Accepted: 13 February, 2019
Published: 21 March, 2019


This study focuses on impacts of deregulation policy of interest rate on the profitability of commercial bank, which will create competition among conventional financial institution for their traditional activities of banks (Deposits, loans and other financial institutions activities). The demand and supply will increase to encourage fund mobilization based on interest rate. Sanity becomes significant in the financial institution as utilization of fund is been judiciously encouraged and invests it to the most profitable ventures. The study explored the survey questionnaire by selecting five financial institutions and distributes twenty (20) questionnaires for each financial institution to their respective managers (experts) for their input. The simple description analysis and correlation were considered for variables comparison to achieve the research objectives. The research findings indicate that the deregulation significantly contributed to the profitability of commercial financial institution and promote competition among their counterpart. The study also reveals that the deregulation in interest rate leads to an increase in profit maximization. The study recommended the changes in the discount rate will reflect a stipulated range depending on how monetary policy pursued and the relation of a current market economy with interest rate, the sufficient control of the institutions and regulatory bodies to ensure the forces driving the economy as adequately managed and controlled.
Contribution/ Originality
This study contributes to the existing literature on the interest rate deregulation. The study uses a new estimation methodology as a structural survey questionnaire which used correlation and descriptive analyses. The study is one of the very few studies based on deregulation of the interest rate on commercial bank.


Commercial bank, Interest rate, Deregulation, Impact, Profitability, Lending.




Google Scholor ideas Microsoft Academic Search bing Google Scholor


This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.


Both authors contributed equally to the conception and design of the study.

Related Article

( 1 ) The Effect of Selected Financial Ratios on Profitability: An Empirical Analysis of Listed Firms of Cement Sector in Saudi Arabia
( 2 ) Market Share and Profitability Relationship: A Study of the Banking Sector in Nigeria
( 3 ) The Profitability of Momentum Strategies: Empirical Evidence from Damascus Securities Exchange (DSE)
( 4 ) The Effect of Internal and External Factors of Companies on Profitability and its Implications on Stock Price Index of State-Owned Banks
( 5 ) Profitability of Commercial Bank on Interest Rate Deregulation
( 6 ) Factors that Influence Profitability of General Insurance Issuers in Indonesia
( 7 ) Determinants of Banks Profitability & Liquidity and the Role of BASEL III in Islamic & Conventional Banking Sector of Pakistan: A Case Study of NBP
( 8 ) Profitability Behavior of Plastic Industries in Indonesia
( 9 ) Analysis of Effect of Profitability, Capital, Risk Financing, the Sharia Supervisory Board and Capabilities Zakat in Islamic Perspective with Circular Approach Causastion on Islamic Banks in Indonesia
( 10 ) Does Capital Structure Affect the Profitability of Listed Family and Non-Family Firms? Evidence from Bangladesh
( 11 ) Determinants of Profitability and its Implications on Corporate Values (Studies at Ceramic, Porcelain and Glass Sub Sector Listed in Indonesia Stock Exchange, 2009 - 2018)
( 12 ) Testing the Validity of Gibrats Law in the Context of Profitability and Leverage
( 13 ) Micro-Credits and Poverty Reduction in Dar-Es-Salaam, Tanzania: A Case Study of Dar-Es-Salaam Commercial Bank
( 14 ) Acquisition of Personal Assets Through Loan Bank and Commercial Credit: What’s the Best Option?
( 15 ) Relevance of Stakeholders Theory, Organizational Identity Theory and Social Exchange Theory to Corporate Social Responsibility and Employees Performance in the Commercial Banks in Nigeria
( 17 ) Financial Inclusion and Poverty Alleviation: The Contribution of Commercial Banks in West Africa
( 18 ) The Role of Bank Loans in Monetary Policy Transmission in Malaysia
( 19 ) Attributes Influencing Strategic Alignment in the Service Sector: An Indonesian Banking Sector Case Study
( 21 ) Profit And Loss Sharing As an Offshoot for Bank Stability: A Comparative Analysis
( 22 ) The Total Factor Productivity of Libyan Banks, 2004 – 2010
( 23 ) The Effects of Changes in Accounting Standards on Value Relevance of Financial Statement Information of Malaysia and Nigeria Banks
( 24 ) The Mediating Effect of Market Orientation on the Relationship between Entrepreneurial Orientation Dimensions and Organizational Performance: A Study on Banks in Libya
( 25 ) Measuring the Quality of Islamic Banks Services and Its Impact on Customers Satisfaction A Survey Study on the Islamic Banks Customers in Lattakia-Syria
( 26 ) Investigating the Demand of Small Hotel and Restaurant Businesses for Bank Financing: The Case of Turkey
( 27 ) Measuring Efficiency in Banks: A Brief Survey on Non – Parametric Technique (Data Envelopment Analysis)
( 28 ) Appointment of Directors and Performance of Deposit Money Banks in Sub Saharan Africa: Do We Need More Executive or Non-Executive Directors?
( 31 ) The Effect of Personal Factors on the Customer Rating of the Quality of Services of the Islamic Banks Operating in the Syrian Coast
( 33 ) Financial Tables Reports Gaps in Jordanian Islamic Banks
( 34 ) Effects of Corporate Social Responsibility on Banks Financial Performance in Nigeria: A Study of United Bank of Africa
( 35 ) What Drives Banking Stability? Empirical Evidence from ECOWAS Countries
( 36 ) Electronic Banking Innovations and Selected Banks Performance in Nigeria
( 38 ) Depositors Confidence and Mergers and Acquisitions: The Nigerian Banking Sector Experience
( 39 ) Sectoral Credit Allocation of Deposit Money Banks and Poverty Reduction in Nigeria
( 43 ) Analyzing the Financial Soundness of Kuwaiti Banks Using CAMELS Framework
( 44 ) Consumers’ Behavioural Intention to Adopt Mobile Banking in Rural Sub-Saharan Africa Using an Extension of Technology Acceptance Model: Lessons from Zimbabwe
( 45 ) What are the Contextual Influences of Bank Criminality in Osun East Senatorial District?
( 46 ) Determinants of Financial Performance and its Impact on the Growth of Islamic Bank Assets on Indonesia
( 48 ) Financial Deepening, Interest Rate Spread and Economic Growth: New Evidence from Sub-Sahara Africa
( 50 ) The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest
( 51 ) Importance of Corporate Governance Quality and Voluntary Disclosures of Corporate Governance Information in Listed Malaysian Family Controlled Businesses
( 52 ) Strategic Evaluation of Distributed Power Generation Technology: A Sustainable Approach
( 53 ) The Effects of Exchange Rate Liberalization in Kenya on French Beans Exports
( 54 ) Exchange Rate Movements, Import And Economic Growth in Nigeria (1986-2010)
( 55 ) Impact of Food Beverage Price Index and Exchange Rate Volatility on Economic Growth
( 56 ) Rate of Return Would Not Increase To the Extent of Annuity Saving Discount
( 57 ) The Association Between Corporate Risk Disclosure and Firm Performance in Emerging Country – The Case of Egypt
( 58 ) A Model of Strategic Thinking: Islamic and Iranian Perspective
( 59 ) Promoting Local Acceptability of International Oil Companies (IOCS) Through Corporate Social Responsibility (CSR): The Case of Tullow Oil in Ghana
( 60 ) Challenges and Survival Strategies for Women in Small Scale Catering Business: A Case Study of Siyaso Magaba, Mbare
( 62 ) Role of Foreign Investment and External Debt in Determination of Exchange Rate
( 63 ) The Role of Strategic Planning on the Management of Organizational Change
( 64 ) Development, Preference Change, and Inequality in an Integrated Walrasian-General-Equilibrium and Neoclassical-Growth Theory
( 65 ) Managerial Judgement Versus Financial Techniques in Strategic Investment Decisions: An Empirical Study on the Syrian Coastal Region Firms
( 66 ) Corporate Funding and Sustainability of Non- Governmental Organizations in Africa
( 67 ) The Effect of Exchange Rate Changes on Consumer Prices in Nigeria: Evidence from VECM Model
( 68 ) Dynamics of Inflation, Economic Growth, Money Supply and Exchange Rate in India: Evidence from Multivariate Analysis
( 69 ) Implications of Crude Oil Price Volatility and Parallel Exchange Rate Fluctuation on the Cost of Living in Nigeria
( 71 ) Implications of Accountants Unethical Behavior and Corporate Failures
( 74 ) The Effects of Exchange Rate Variability on Trade Flows in Nigeria: A Cointegration Analysis
( 76 ) The Moderating Effect of Governance Mechanisms on the Relationship Between Innovation Strategy and the Performance
( 77 ) Public-Private Partnership as a Strategy for E-Governance Funding in Africa: The Gains and the Pains
( 78 ) Does Gold Price Lead or Lags Islamic Stock Market and Strategy Commodity Price? A Study from Malaysia
( 79 ) Exchange Rate and Foreign Reserves Interface: Empirical Evidence from Nigeria