Bank stocks and interest rates

Bc. Recep Said Kocyigit

Bakalářská práce

Anotace:

This study investigates the relationship between the Federal Reserve's overnight interest rates (DFF) and bank stock prices using panel data from 55 banks. This research aims to evaluate the impact of changes in interest rates on the performance of bank stocks. Utilizing pooled OLS and fixed-effects models, the analysis finds a significant positive rela-tionship between interest rate changes and banking stock prices. The results challenge the negative correlation found in previous literature on the performance of general stocks and interest rates.

Abstract:

This study investigates the relationship between the Federal Reserve's overnight interest rates (DFF) and bank stock prices using panel data from 55 banks. This research aims to evaluate the impact of changes in interest rates on the performance of bank stocks. Utilizing pooled OLS and fixed-effects models, the analysis finds a significant positive rela-tionship between interest rate changes and banking stock prices. The results challenge the negative correlation found in previous literature on the performance of general stocks and interest rates.

Keywords

Interest Rates, Stock Prices, Panel Data Analysis, Pooled OLS, Fixed Effects Model, Monetary Policy, Financial Markets

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 25. 4. 2025

Obhajoba závěrečné práce

• Obhajoba proběhla 11. 6. 2025
• Vedoucí: Ph.D. Oleg Deev
• Oponent: prof. Ing. Eva Horvátová, CSc.

Masarykova univerzita

Ekonomicko-správní fakulta

Bakalářský studijní program / obor:
Business Management and Finance / Business Management and Finance