Do bank-specific factors drive bank deposits in Ghana?

Ünvan, Yüksel Akay; Yakubu, Ibrahim Nandom

doi:10.1016/j.cam.2020.112827

Cited by 39 publications

(36 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In every economy, financial resources are pertinent for enhancing growth through efficient financial intermediation (Sulaiman and Aluko, 2015). Financial intermediaries particularly banks play a crucial role in a country's overall financial system by embarking on several activities vital for economic growth (Aziakpono, 2005;€ Unvan and Yakubu, 2020). For instance, financial intermediaries serve as a conduit by which financial resources move from surplus to deficit economic units.…”

Section: Introductionmentioning

confidence: 99%

Re-examining the impact of financial intermediation on economic growth: evidence from Turkey

Yakubu

Abokor

Balay

2021

JED

Self Cite

View full text Add to dashboard Cite

PurposeThis study seeks to investigate the impact of financial intermediation on economic growth in Turkey using annual data spanning 1970–2017.Design/methodology/approachBased on the results of the augmented Dickey–Fuller and Phillips–Perron unit root tests for stationarity, the authors employ the Autoregressive Distributed Lag (ARDL) bounds testing to cointegration to establish the long-run impact of financial intermediation alongside other control factors on economic growth. The study also examines the short-run relationship between financial intermediation and economic growth by estimating the Error Correction Model (ECM).FindingsThe authors’ findings indicate that financial intermediation significantly influences economic growth in both short and long run. However, the effect is positive only in the short run, lending support to the supply-leading hypothesis. Regarding the control variables, the authors observe that while financial openness shows a positive significant impact on economic growth in the long run, gross fixed capital formation matters only in the short run. The results further infer that regardless of the time period, inflation impedes economic growth.Originality/valueIn the empirical analysis of the relationship between financial intermediation and economic growth, financial intermediation is always measured using a single variable. The authors argue that such studies could produce bias and misleading results given that a single proxy does not adequately reflect financial intermediation activities. Likewise, such findings may delude policy implementation. To provide a more vivid and robust analysis, the authors employ the Principal Component Analysis (PCA) to construct a composite index for financial intermediation based on three broad measures. The researchers’ are unaware of any study on the financial intermediation–economic growth nexus using a composite index of financial intermediation. Thus, this paper fills this lacuna in the literature.

show abstract

Section: Introductionmentioning

confidence: 99%

Re-examining the impact of financial intermediation on economic growth: evidence from Turkey

Yakubu

Abokor

Balay

2021

JED

Self Cite

View full text Add to dashboard Cite

show abstract

“…Globally, the banking sector has undergone significant transformations for the past decades with banks activities and performance being influenced by both internal and external factors. Banks generally contribute to economic growth through their intermediation functions and the financing of economic activities (Ünvan & Yakubu, 2020). A central aspect of banks which aids in smoothening economic activities is the level of profitability.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Financial Leverage on Profitability: An Empirical Analysis of Recapitalized Banks in Ghana

2021

ijafr

View full text Add to dashboard Cite

In this study, we examine the impact of financial leverage on profitability of recapitalized banks in Ghana over the period [2008][2009][2010][2011][2012][2013][2014][2015][2016][2017]. Based on the random effects and fixed effects estimation strategies, our findings reveal that leverage exerts a significant negative effect on banks' profits regardless of the proxy of profitability. This provides empirical support for the pecking order theory. The results also establish that bank size positively and significantly enhances profitability. In light of our findings, we conclude that financial leverage is detrimental to banks' profit growth in Ghana.

show abstract

“…One of the key activities of banks contributing to their efficiency is deposit mobilization. In emerging markets, deposits are core to bank operations (Ünvan and Yakubu, 2020). Most businesses heavily resort to bank loans as a source of financing, and deposits largely dictate how much funds are available for lending activities.…”

Section: Introductionmentioning

confidence: 99%

Factors determining bank deposit growth in Turkey: an empirical analysis

Yakubu

Abokor

2020

RAMJ

Self Cite

View full text Add to dashboard Cite

Purpose This paper aims to examine the key factors determining bank deposit growth in Turkey for the period 2000Q1–2016Q4. Design/methodology/approach The study employs the autoregressive distributed lag approach to investigate the effect of bank-level and macroeconomic factors on deposit growth. Findings The results reveal that bank stability, banking sector efficiency, broad money supply, economic growth, and inflation are significant determinants of deposit growth in the long run. The findings further show that in the short run, only branch expansion and broad money supply are relevant for bank deposit mobilization. Originality/value This paper departs from the extant empirical studies that focus on the determinants of individual savings behaviour in Turkey. Considering the short- and long-run time dimensions, the authors distinctively examine how bank characteristics influence deposit growth, thus presenting a relatively pioneering attempt in this context.

show abstract

Do bank-specific factors drive bank deposits in Ghana?

Cited by 39 publications

References 11 publications

Re-examining the impact of financial intermediation on economic growth: evidence from Turkey

Re-examining the impact of financial intermediation on economic growth: evidence from Turkey

The Effect of Financial Leverage on Profitability: An Empirical Analysis of Recapitalized Banks in Ghana

Factors determining bank deposit growth in Turkey: an empirical analysis

Contact Info

Product

Resources

About