AN EMPIRICAL ANALYSIS OF MACROECONOMIC FACTORS AFFECTING ON THE DEPOSIT MOBILIZATION OF PRIVATE COMMERCIAL BANKS IN MYANMAR
Abstract
Deposit mobilization is a crucial source of working fund of banks. It is also important for the growth of economy. Higher savings contributes to higher investment. This in turn, leads to higher economic growth. Given this background, deposit mobilization plays a vital role for banks as well as economy.
Hence, this paper examines to explore the impact of macroeconomic factors which include real interest rate, real GDP per capita, money supply and average exchange rate on deposits mobilization in the case of private commercial banks in Myanmar.
This study targets 24 private Commercial Banks which include a sample. The relationship between deposit and macroeconomic factors is examined using quarterly data for the period from fiscal year 2013/14 to 2017/18. The required secondary data are obtained from quarterly financial statistics bulletin of Central Bank of Myanmar and Statistical Year Book published by CSO, Myanmar.
Data is analyzed with inferential such as correlation analysis and multiple regression analysis, and descriptive analysis using Statistical Package for Social Sciences software (version 23).
The study finds that real interest rate, real GDP per capita and exchange rate have a positive and significant effect on the deposit mobilization while money supply has a negative and insignificant impact on deposit of private banks. Hence, the study recommends that the policy makers should ensure adopting appropriate macroeconomic policies because macroeconomic factors such as real interest rate and real GDP per capita affect the increase of deposit mobilization.
Keywords:
Macroeconomic Factors, Deposit Mobilization, Private Commercial BanksDownloads
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