The Effect of Interest Rate Spread on the Profitability of Nepalese Commercial Bank

Abstract

This study examines the impact of the interest rate spread on the profitability of Nepalese commercial banks by using the data from mid-July 2011/12 to 2020/21.This study employs a quantitative approach to examine the effect on twenty-six commercial banks. The results show that interest rate spread positively affects firm performance. One percentage increase in interest rate spread increases return on assets by 0.137%, return on equity by 1.37%, and earnings per share by 8.11%.