Abstract:

Central Bank interest decisions affect the financial performance of commercial banks. It is known that key problems such as stable growth and external balance problems are affected by the playback in currencies. The central bank is interfering with interest decisions against currency currency games and aims to ensure stability. When the currency gap in the countries with an open search problem increases more, employment is expected to increase and unemployment rates are expected to decrease. So there is an economic volatility, as I have stated in the article’s findings. Therefore, as the change in interests directly affects the country’s economy, developing countries are also going to lower interests by implementing strict monetary policies. While the policy steps taken in 2020 have repeatedly decided to lower the tender interest rate, the proposals for a weekly repo are continuing. During this period, there are restrictions on funding. The banks should take action while providing funding. It is not easy to ensure price stability with the short-term inflation target. Since the increasing unemployment rates have brought the problem of employment in recent years, the government needs to create more employment opportunities to increase the employment rates. In the short term, inflation targets also have negative effects on the currency balance. In this study, the power of the Central Bank’s interest decisions to explain the financial performance of commercial banks has been studied. The data set used in the study covers the dates 2009-2019. The model was prepared using the regression analysis for this detection. Correlation matrix is calculated through Excel. Then, a separate normal distribution test was applied to the variables. The model is not statistically meaningful.

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