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The central bank raises interest rates consecutively from 2022 to 2023. This thesis uses the paired-sample t test and the Wilcoxon signed-rank test to examine the impact of the central bank's continuous interest rate hikes on the financial performance of the domestic financial industry. The empirical results of this thesis are summarized as follows:
First, the profitability of private financial holding companies is significantly lower during the period of continuous interest rate hikes. Furthermore, the central bank’s continuous interest rate hikes have a significant negative impact on the growth of government-invested and private financial holding companies. Second, the banking industry has better profitability during the period of continuous interest rate hikes, especially the profitability of banks under government-invested and private financial holding companies has improved most significantly. Additionally, the capital adequacy ratios of banks under financial holding companies and non-financial holding banks have a significant downward trend during the period when the central bank continuously raises interest rates. Third, the central bank’s continuous interest rate hikes have a significant negative impact on the profitability of insurance companies under private financial holdings. Furthermore, insurance companies under financial holding companies and non-financial holding insurance companies have significantly lower growth and lower operating capabilities during the period of continuous interest rate hikes. Fourth, securities companies under government-invested and private financial holding companies have significantly lower profitability during the period of continuous interest rate hikes. Furthermore, the securities companies under financial holding companies have significantly lower growth and significantly lower operating capabilities during the period of continuous interest rate hikes.
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