Factors determining bank deposit growth in Turkey: an empirical analysis

Abstract

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.

The Impact of Interest and Inflation Rates on Deposits Behavior of Banks: The Case of Egypt

“…Another stream of literature has investigated the impact of inflation rates (CPI) on the deposits' behavior of banking, (e.g. Touny, 2008;Harald & Heiko, 2009;Gemedu, 2012;Khaskheli et al, 2013;Islam et al, 2019;Yakubu & Abokor, 2020); The empirical findings of these studies are not conclusive, as they show mixed evidence regarding their impact on deposits' behavior of banks. For instance, (Hadiyanto & Haryanto, 2013), concluded that there is no causal relationship between the inflation rate and time deposits.…”

“…Several studies reveal the effect of inflation rates on the mobilization of savings and on the deposits' behavior of banking, (e.g. Touny, 2008;Harald & Heiko, 2009;Abduh & Sukmana, 2011;Gemedu, 2012;Ngula, 2012;Khaskheli et al, 2013;Rama & Kassim, 2013;Abdul Karim et al, 2014;Abou El-Seoud, 2014;Mashamba et al, 2014;Larbi-Siaw & Lawer, 2015;Tareq, 2015;kapounek et al, 2016;Akhtar et al, 2017;Mushtaq & Siddiqui, 2017;Arikewuyo & Akingunola, 2019;Menza, 2019;Tho'in & Prastiwi, 2019;Toriola, 2019;Agwu et al, 2020;Ünvan & Yakubu, 2020;Yakubu & Abokor, 2020). For instance, (Obi & Ezeanyeji, 2019) point out that the inflation rate has an insignificant positive effect on savings mobilization.…”

“…Many studies have identified, forecasted, analyzed, and evaluated fluctuations in macroeconomic variables, financial and monetary variables, in both developed and emerging markets (e.g. Touny, 2008;Harald & Heiko, 2009;Abduh & Sukmana, 2011;Eriemo, 2014;Mashamba et al, 2014;Ene et al, 2015;Hassan, 2016;Arikewuyo & Akingunola, 2019;Menza, 2019;Doktoralina & Nisha, 2020;Odeigah & Mike, 2020;Ünvan & Yakubu, 2020;Yakubu & Abokor, 2020). For instance, (Kasri & Kassim, 2009) reveal that traditional interest rate is important in explaining saving behavior.…”

Analisis Pengaruh Obligasi Ritel Indonesia dan Inflasi terhadap Dana Pihak Ketiga Bank Konvensional

“…(Jokipii & Monnin, 2013). Banks obtain funds from the public through deposits, current accounts, and savings (Yakubu & Abokor, 2020). The table above illustrates that in recent years, the government always experienced a deficit from the state budget (Dirgahayu et al, 2021).…”

Short and Long-term Determinants of Commercial Bank Deposit Growth in an Emerging South Asian Economy: Sri Lanka

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Deposit mobilization is one of the key activities that contribute to the efficiency of banks (Yakubu, 2020) Being in the sixty-first place in the emerging economics market list out of sixty-six countries, deposits are important for Sri Lankan bank operations. Many businesses rely seriously on bank loans as a source of financing.

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