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The Central Bank implemented four elective credit controls from December 7, 2020 to December 16, 2021. This study uses a paired sample t-test to test whether four elective credit controls have a significant impact on the operating performance of the domestic banking industry. Additionally, this thesis also uses multivariate regression analysis to explore whether the impact of four selective credit controls on the profitability of the banking industry is significant. The empirical results of this study are summarized as follows: The implementation of four selective credit controls did have a detrimental effect on overall bank profitability. Furthermore, during the four periods of selective credit control implemented by the central bank, the non performing loan ratio for residential mortgage loans and the total non performing loan ratio of the overall bank decreased significantly. Moreover, the coverage ratio for residential mortgage loans and total coverage ratio increased significantly. Finally, during the four periods of selective credit control implemented by the central bank, the equity capital ratio of overall bank increased significantly. Multivariate regression results reconfirm that the implementation of four selective credit controls does have an adverse effect on the profitability of the overall banking industry.
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