Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Determinants of deposit of commercial banks in Sudan: an empirical investigation (1970-2012)

Determinants of deposit of commercial banks in Sudan: an empirical investigation (1970-2012) This present study scrutinises the factors determining the magnitude of deposits of commercial banks operating in Sudan during the period from 1970 to 2012. Factors under scrutiny are inflation rate, total credit as a percentage of GDP, interest rate (profit margin), money supply as the GDP percentage and per capita GDP. This study utilises the approach of autoregressive distributed lag (ARDL) to co-integration and the related error correction model (ECM) for the examination of the factors. The main results obtained suggest that within the long-run, inflation and money supply show negative impacts on total deposits. Conversely, credit, interest rate (profit margin) and real per capita GDP have positive impact on total deposits. Within the short-run, using OLS method, although nearly variables demonstrate that they are statistically significant, they are exhibiting the wrong signs. Nevertheless, the coefficient of the lagged residual (ECt−1) within the ECM model has the correct sign and is highly significant which implies that in the long-run equilibrium, the dependent variable has the inclination for adapting to any deviations. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Electronic Finance Inderscience Publishers

Determinants of deposit of commercial banks in Sudan: an empirical investigation (1970-2012)

Loading next page...
 
/lp/inderscience-publishers/determinants-of-deposit-of-commercial-banks-in-sudan-an-empirical-Rh9ro6XsQ1

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd
ISSN
1746-0069
eISSN
1746-0077
DOI
10.1504/IJEF.2019.099066
Publisher site
See Article on Publisher Site

Abstract

This present study scrutinises the factors determining the magnitude of deposits of commercial banks operating in Sudan during the period from 1970 to 2012. Factors under scrutiny are inflation rate, total credit as a percentage of GDP, interest rate (profit margin), money supply as the GDP percentage and per capita GDP. This study utilises the approach of autoregressive distributed lag (ARDL) to co-integration and the related error correction model (ECM) for the examination of the factors. The main results obtained suggest that within the long-run, inflation and money supply show negative impacts on total deposits. Conversely, credit, interest rate (profit margin) and real per capita GDP have positive impact on total deposits. Within the short-run, using OLS method, although nearly variables demonstrate that they are statistically significant, they are exhibiting the wrong signs. Nevertheless, the coefficient of the lagged residual (ECt−1) within the ECM model has the correct sign and is highly significant which implies that in the long-run equilibrium, the dependent variable has the inclination for adapting to any deviations.

Journal

International Journal of Electronic FinanceInderscience Publishers

Published: Jan 1, 2019

There are no references for this article.