Multidisciplinary Subjects
CAPITAL MARKET OPERATIONS AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN CAMEROON
1 DEPARTMENT OF BANKING AND FINANCE, COLLEGE OF BUSINESS AND MANAGEMENT STUDIES, IGBINEDION UNIVERSITY, EDO STATE, NIGERIA
Abstract
This paper examines the crucial connection between Cameroonian commercial banks' financial performance from 2014 to 2023 and capital market operations. The analysis shows a dualistic influence using data from all 13 commercial banks and a longitudinal panel design with fixed effects regression. The financial intermediation theory is supported by the fact that fee-based revenue from capital market services greatly increases bank profitability. The "lazy banking" theory is empirically supported in the Cameroonian context; nevertheless, since a high reliance on securities investment exhibits a negative correlation with Return on Assets (ROA). The study also demonstrates that while bank size and market dominance are important success factors, monetary policy is a potent moderating factor that dramatically changes the influence of trade and investment operations. The results show that the advantages of participating in the capital market are not always present and depend on the macroeconomic policy environment and strategic focus. In order to offer more varied and easily accessible investment alternatives, the report advises regulators to strengthen capital market operations, while banks should strategically increase fee-based services and implement dynamic treasury management.
Keywords: Capital Market Operations, Financial Performance, Commercial Banks, Lazy Banking, Monetary Policy.
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