Impact of Banking and Non-Banking Investments on Performance of Nepalese Commercial Banks

Aakash Saraf

Abstract: This study examines the impact of banking and non-banking investments on the performance of Nepalese commercial banks during the period from 2006/07 to 2015/16. Applying the correlation and panel data regression, the study finds that among the multiple independent banking and non-banking investments variables taken for analysis like: investments, loan and advances, cash balance and provision for possible losses. For the study, descriptive and causal analysis along with correlation analysis and panel data analysis is used. Also, step-wise regression is used in the study. All the independent variables had a negative relationship with the dependent variables performance of banks: Tobins q.

Keywords: Banking Investments, Non-Banking Investments, Performance of Nepalese Commercial Banks, Tobins Q