IDEAS home Printed from https://ideas.repec.org/a/ris/apecjn/021660.html
   My bibliography  Save this article

The Influence of Global Crude Oil Prices on Banking Sector Profitability: Panel Evidence from Selected Economies

Author

Listed:
  • Emmanuel Ezekiel Mwanjilinji

    (Department of Statistics, University of Dar es Salaam, Tanzania School of Finance, Jiangxi University of Finance and Economics, China)

  • Fei-Ming Huang

    (School of Finance, Jiangxi University of Finance and Economics, China)

Abstract

This study investigates the impact of global crude oil prices on banking sector profitability in 16 selected economies from 2000 to 2021. Using panel Autoregressive Distributed Lag (ARDL) analysis, the study explores both long-run and short-run relationships, incorporating GDP growth, inflation, and real interest rates as control variables. The results reveal a weak but positive long-term association between oil prices and bank profitability, while GDP growth significantly enhances profitability, and inflation exerts a negative effect. Real interest rates also show a positive influence. In the short run, none of the macroeconomic variables exhibit statistically significant effects. The findings suggest that macroeconomic stability—particularly sustained growth and inflation control—is essential for long-term banking sector performance. Policymakers and financial institutions should consider structural drivers and adopt strategies that enhance resilience to commodity price volatility.

Suggested Citation

  • Emmanuel Ezekiel Mwanjilinji & Fei-Ming Huang, 2025. "The Influence of Global Crude Oil Prices on Banking Sector Profitability: Panel Evidence from Selected Economies," Asian Journal of Applied Economics/ Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 32(2), pages 164-187, August.
    • Handle: RePEc:ris:apecjn:021660
    as

    Download full text from publisher

    File URL: https://so01.tci-thaijo.org/index.php/AEJ/article/view/278545
    File Function: full text
    Download Restriction: Asian Journal of Applied Economics/ Applied Economics Journal
    File URL: https://so01.tci-thaijo.org/index.php/AEJ/article/view/278545
    Download Restriction: Asian Journal of Applied Economics/ Applied Economics Journal
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:apecjn:021660. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Arannee Tongjankaew (email available below). General contact details of provider: https://edirc.repec.org/data/feckuth.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.