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EFFECTS OF INFLATION ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN SOUTH SUDAN
This research's objective was to assess how inflation affects the financial health of South Sudan's commercial banks. the resource-based theory and the currency conversion theory served as the research's guiding theories. The design adopted was descriptive in nature. The researcher collected information from different banks in South Sudan. Data was based on primary and non-field data. It was a census-based study and all the banks in the region were involved. Analytical models in quantitative data were used in the data analysis. The study found that inflation. The inquiry confirmed the view that inflation is a negative change on banks success and profitability. The regression model and p-values confirmed that banks do not do well in times of inflation. The analysis also reveals that banks lack customers during inflation and there is need for proper planning and management of inflation challenges to manage investment conditions in the banks. It is recommended that top managers within banks find different ways of managing the negative effects of inflation in their operations and promote their output. Without effective measures, the negative value that inflation has on banks will reduce their success and profitability in the long run. It is also imperative that banks invest in times when there is low inflation since there is high consumer purchasing power and high demand on bank services and programs at the time. Importantly, the inquiry suggests the need for firms to adopt effective cash management in their major operations as it is important in enhancing their success in the long run. With effective cash management, it is possible to make investment even in conditions of inflation in the country.
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