A comparison of bank margin and profitability
by Rohit Kishore
International Journal of Education Economics and Development (IJEED), Vol. 3, No. 2, 2012

Abstract: Using various profitability ratios, this paper examines bank profitability in Fiji and compares it with the banks in New Zealand, Australia and USA. The findings suggest that on average, banks in Fiji have a significant higher net interest margin (NIM) relative to their overseas counterparts. From 2005 through 2010, NIMs in Fiji ranged from 5% to 7%, compared with 1% to 2% in New Zealand, Australia and USA. When you add the increasing fees and charges to this high margin, bank profitability in Fiji becomes a serious concern and the question is raised about their crucial role in expanding economic opportunities in Fiji. Further evidence suggest that the international banks in Fiji have been borrowing cheap funds from the Fiji National Provident Fund for many years and lending them back to Fiji's economy, reaping significant profits for their shareholders that are eventually repatriated overseas.

Online publication date: Sat, 23-Aug-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Education Economics and Development (IJEED):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com