The Determinants of Commercial Banks Profitability in Zimbabwe (2009-2014)

Abstract

The aim of the research is to identify the determinants of bank profitability. The researcher identified that internal factors are the major determinants of bank profitability. A sample of 5 commercial banks out of a population of 18 was used. The researcher recommended that macroeconomic policies are of great important. Inflation reduces credit expansion by contributing to higher net interest margins. Thus, policies aimed at controlling inflation should be given priority in fostering financial intermediation. Since the output cycle matters for bank profits, fiscal and monetary police that are designed to promote output stability and sustainable growth are good for financial intermediation. Also fees and commission should be monitored and managed so that a customer is not deceived.