TITLE:
Securities Market and Its Stimuli: An Opportunity for the Financial Performance of Banks in the DRC
AUTHORS:
Senga Matabaro, Niyongabo Gilbert, Nsengiyumva Théogène, Mwisha Kasiwa Janvier, Muhindo Uhuru Michael, Denise Kavira Masingo
KEYWORDS:
Securities Market, Financial Performance, Bank Liquidity, Securities Market Stimuli
JOURNAL NAME:
Open Access Library Journal,
Vol.12 No.4,
April
30,
2025
ABSTRACT: This study explores the strategic role of the securities market in improving the financial performance of banks in the Democratic Republic of Congo (DRC). The central issue is to understand to what extent securities market stimuli influence banks’ profitability, liquidity, and solvency in an underdeveloped economic context. The study adopts an econometric approach based on the Ordinary Least Squares (OLS) method applied to panel data from the Central Bank of Congo. The results show that an increase in financial securities temporarily improves banks’ profitability and liquidity in the short term; however, excessive management limits flexibility and harms financial stability in the long run. Macroeconomic conditions, particularly GDP, interest rates, and inflation, also influence bank performance. The study recommends structural reforms and the diversification of financial instruments to maximize the opportunities of the securities market. In conclusion, proactive and balanced management, supported by technological innovations and robust regulation, is essential to fully harness the potential of the securities market in the DRC and strengthen the competitiveness of the banking sector.