The impact of monetary policy on profitability of four major banks in South Africa

This study examines the effect of monetary policy on the profitability of the four major banks in South Africa, namely; Standard Bank, Ned bank, ABSA and FNB. The annual data used is for the period of 1999 to 2015, the study use Pooled OLS effects and Fixed effects to investigate the impact of Monetary Policy on Bank Profitability using Return on Assets as profitability measure. Empirical results indicate that monetary policy proxies by repo rate and lending rates were found to have no significant impact on bank profitability in the four major South African banks