THE IMPACT OF INTEREST RATE AND EXCHANGE RATE ON BANKS PROFITABILITY

This project examines the intricate relationship between interest rates, exchange rates, and their combined effect on the profitability of financial institutions, with a primary focus on banks. The study employs comprehensive data analysis and regression models to evaluate how fluctuations in interest rates and exchange rates influence the financial performance of banks. It also investigates the strategies and risk management techniques employed by banks to navigate these dynamic economic variables. The findings of this research contribute to a better understanding of the challenges and opportunities banks face in a global financial landscape characterized by changing interest rates and exchange rates, thereby aiding financial institutions in making informed decisions to enhance their profitability