Bank Deposits Research Articles

Impact of Financial Intermediation and Regulatory Frameworks on Financial Deepening and Economic Growth: Insights from Lesotho

Purpose: The purpose of this study is to analyse the impact of financial intermediation and regulatory frameworks on financial deepening and economic growth in Lesotho, utilizing data from 2003 to 2022. The objective is to explore the relationships between selected financial and economic indicators and assessing their influence on financial deepening. Methodology: This study utilized secondary time series data, which poses challenges regarding authenticity and reliability since it was collected by external parties. However, these concerns were addressed by using data from reputable global agencies like the IMF, World Bank, and the Central Bank of Lesotho’s annual report from 2003 to 2022. The analysis was conducted using the Ordinary Least Squares (OLS) regression method. Findings: The findings highlight the complex role of financial intermediation and regulatory frameworks in shaping financial deepening and economic growth. Higher cash reserve ratios and treasury bill rates negatively affect financial deepening by reducing liquidity and increasing credit costs. However, increased commercial bank deposits with the central bank positively contribute to financial stability and deepening. Moderate inflation also fosters financial deepening by raising the nominal value of financial assets. While ATMs per capita enhance financial access and growth, an increase in bank branches per capita shows inefficiencies, underscoring the need for effective infrastructure and service delivery. Unique Contribution to Theory, Policy and Practice: The study suggests that policymakers should adjust cash reserve requirements, monitor credit expansion to avoid over-lending, and improve banking infrastructure. It highlights the need for careful interest rate management and promoting financial innovation to enhance market depth.

A Comparative Analysis of Board Qualities and Performance of Listed Deposit Money Banks in Nigeria and Ghana

Disclosure of board information is crucial for good governance, risk management, and stakeholder relations in the banking sector. The board of directors’ quality is crucial in setting strategic direction and ensuring effective governance. This study comparatively examined the qualities of the board of directors of listed deposit banks in Nigeria and Ghana and assessed the effects of the board qualities on the financial performance of banks in the two countries. The study used an ex post facto research design, involving 19 deposit money banks listed on the Nigerian Exchange Limited and Ghanaian Stock Exchange. Data was collected from audited annual reports and analyzed using descriptive and inferential statistics. The descriptive analysis includes mean, median mode, minimum, and maximum among others while the inferential analysis includes independent t-tests and panel regression. The study reveals that the board of listed deposit money banks in the Nigerian exchange group meets more frequently and is more independent than those in the Ghanaian stock exchange, and their board size is larger than in Ghana. Board female gender diversity of listed deposit money banks on the Nigerian exchange group is not significantly lower than the board female gender diversity of firms listed on the Ghanaian stock exchange. The study reveals that board gender diversity doesn’t significantly impact the financial performance of listed deposit money banks in Nigeria and Ghana. However, board independence has a negative effect in Nigeria, while board meetings negatively affect performance in Nigeria. Board size also has a positive effect in Nigeria. The study recommends that directors of listed banks in Nigeria should reduce the number of their meetings or expenses of the meeting because it is reducing the profitability of the companies. The study also recommends that the banks in Ghana should provide regular training for independent directors to enhance their understanding of the industry.

Moral Hazard and the deposit insurance cap: a case study of Northern Rock and Silicon Valley Bank

ABSTRACT The main contention of this article is that government insurance for bank deposits should be unlimited. In spite of claims made in the literature concerning the moral hazard dangers of deposit insurance schemes, I argue that these claims are unconvincing; indeed, the empirical record - discussed here in relation to Northern Rock and SVB - demonstrates that uninsured depositors exhibit similar behaviour to their insured counterparts, undermining the claim that limiting insurance induces risk-monitoring. In contrast, there is strong evidence that in developed jurisdictions with established, mature regulatory institutions, deposit insurance does not result in excessive risk-taking on the part of banks. The significant financial stability benefits accruing to insuring bank deposits include the elimination of depositor runs, a reduction in the incentives for unregulated bank-like financial intermediation (shadow banking), and heightened competition. Activity restrictions and other measures can reduce any heightened risk-taking which emerges as a result of wider insurance coverage.

Central Bank Digital Currencies: Experimental Evidence of Deposit Conversion

Abstract In this paper, we provide unique experimental evidence of depositors’ behaviour in presence of a possibility to convert commercial bank deposits into central bank digital currency (CBDC). Theoretically and experimentally we analyse whether such an option incentivises bank runs. We find that the availability of the deposit conversion option does not lead to a significant outflow of deposits. However, when conversion is restricted, depositors are eager to actively use it as a coordination tool. These findings highlight the importance of considering coordination and decision time in determining the choice to convert deposits into CBDC. Our study evidences that policy-makers should balance accessibility and control measures to maintain financial stability, ensuring that CBDC implementation supports the resilience of the banking system.

Knowledge Management and Employee Performance in Nigeria Money Deposit Banks: A Case Study of Lagos State

Employees play a crucial role in advancing an organization's human and social capital, contributing significantly to knowledge creation and management, especially in the banking sector. Acknowledging their importance, the banking industry prioritizes improving its workforce. As a result, organizations, particularly those in Nigerian banking, invest resources in boosting employee performance through training, motivation, and career development. Despite these endeavours, there are still observable shortcomings in the performance of employees within Nigerian deposit money banks. The study adopted a survey research design. The population of the study consists of 4,873 employees of the eight selected deposit money banks in Lagos State, Nigeria. A sample size of 464 was determined, and data was collected using a valid and reliable questionnaire with a Cronbach alpha value ranging from 0.79 to 0.92. The data were analysed using both descriptive and inferential tools. A response rate of 87.2% was recorded. Simple linear regression analysis was used to determine the effect of the variables using Statistical Package for Social Science (SPSS) version 27. The findings revealed knowledge acquisition had a significant effect on employee performance in selected deposit money banks in Lagos State, Nigeria (Adj. R = 0.784; F(1, 404) = 64.762; p < 0.05), also, knowledge sharing had a significant effect on employee performance (Adj. R = 0.702; F(1, 404) = 390.478; p < 0.05), similarly, knowledge application had a significant effect on employee performance (Adj. R = 0.810; F(1, 404) = 769.885; p < 0.05). The study concluded that knowledge acquisition, knowledge sharing, and knowledge application have significant effects on employee performance. Based on these findings, it is recommended that deposit money banks in Nigeria invest in robust knowledge management programs and initiatives. These programs should focus on enhancing employees' abilities to acquire, share, and apply knowledge effectively. Implementing training sessions, workshops, and knowledge-sharing platforms can facilitate a culture of continuous learning and collaboration within the organization.

Determinants of bank deposit in a small economy’s banking sector: a study of Fiji

Purpose Deposits, a liability component of banks’ balance sheet, are an important source of funding for commercial and retail banks. In this study, the authors consider deposits as dependent variable and examine factors (bank-specific, macrofinance and structural) that could plausibly explain deposits. Subsequently, the findings are expected to support analysts, bank managers and regulators, especially in small economies such as Fiji, for asset–liability management. Design/methodology/approach This study uses a balanced panel of six commercial banks and two credit institutions over the period 2000–2022. To control for bank heterogeneity, a fixed-effect regression method is used. Findings Bank-specific variables such as bank size, profitability, loan-to-deposit ratio and bank stability are positively associated with bank deposits, whereas the capital adequacy ratio is negatively associated with bank deposits. Macroeconomic variables such as remittances and gross domestic product per capita are positively associated with bank deposits. Moreover, institutional variables such as control of corruption, political stability and regulatory quality are positively associated with bank deposits. However, tail events such as the global financial crisis of 2007–09 and the COVID-19 pandemic negatively influence bank deposits. Structural breaks for 2007 and 2011 of two banks (Bank of the Baroda and Bank of the South Pacific, respectively) are positively associated with bank deposits. Originality/value Previous studies have considered profitability, competition, nonperforming loans and stability of banks in Fiji. To the best of the authors’ knowledge, this study is the first to consider the determinants of bank deposits, an important source of funds for banks in many small countries including Fiji. In addition, this study examines the impact of structural breaks, tail events such as the recent pandemic (COVID-19) and institutional variables.

Главное о социальном банковском вкладе и социальном банковском счете

On July 22, 2024, Russian President Vladimir Putin signed Federal Law № 202-FZ, which establishes the possibility of opening special banking products, namely a social bank deposit and a social bank account.

Comparative Performance Evaluation of Real Estate Investment Trusts Shares and Money Deposit Bank Shares in Nigeria (2013 – 2022)

This study presented a need to evaluate the investment performance of Real Estate Investment Trust shares and Money Deposit bank shares in Nigeria using dividend yields between 2013 to 2022. The aim of the study was to determine the mean annual dividend yields of both investment media and subsequently compare the relative performance so as to enable investors to make informed decisions about their choice of investment. The objectives of the study were to ascertain the dividend yield of both investment platforms over the last ten years, from 2013 to 2022 and to determine whether or not REIT shares outperformed Money Deposit Bank shares in dividend yield between 2013 to 2022.The methodology of data sample technique used was the purposive sampling technique, quantitative method of data collection was used to gather, assemble and collate data from the annual reports of selected of Real Estate Investment Trust and Money Deposit bank companies as well as through special publications of the Nigerian Stock Exchange (NSE) and Central Bank of Nigeria (CBN). Descriptive statistical techniques (Mean, standard deviation) were employed in analysing the data. The study found out that the performance of REITs shares showed a mean return of 5.275% over the ten years, this was compared to that of the performance of Money Deposit bank shares at 8.632% over the same ten years, showing under-performance. The study also found out that investments in Money Deposit Bank shares are much riskier than investment in REITs between 2013 to 2022. The study recommended that investment appraisal should be carried out before a decision is made towards embarking on such investment. It was also suggested that stakeholders in REIT should create an enabling environment for REIT to thrive in Nigeria.

Human interventions alter meandering channels evolution: Insights from the inner bank scouring and outer bank deposition in the Jingjiang Reach after the operation of the Three Gorges Dam

Geomorphic abnormal responses of consecutive river bends to human activities, such as reservoir constructions and bank protection projects, have not been understood sufficiently. Based on the measured hydrological and topographic data, and remote sensing data, we investigated the morphological adjustments of 17 typical consecutive bends with different curvatures (the ratio of bend width B and bend radius R at the bend apex ranging from 0.22 to 1.96) in the Jingjiang Reach after the Three Gorges Dam (TGD) (2004–2021). The results show that these bends generally experienced inner bank scouring (IBS) and outer bank deposition (OBD). The distance to the dam affects the mechanism of IBS, from being primarily controlled by the water scouring intensity near the dam to the bend curvature and the regime adjustment of the upstream bend. Our results also show that the locations of IBS and OBD in the bends are related to the bend curvature. In sharp bends (B/R > 0.5), IBS occurs in the upper half of the bend, accompanied by OBD near the bend apex. In moderate bends (B/R ≤ 0.5), IBS occurs throughout the whole bend, with OBD near the bend entrance. A higher curvature bend tends to experience greater scouring of the inner bank near the bend apex. Moreover, the effect of upstream bends on downstream bends is revealed. In response to IBS and OBD in the upstream bend, the thalweg at the entrance shifts towards the inner bank, further promoting IBS in the downstream bend. OBD in the downstream bend is intensified by the residual reverse circulation of upstream bend. The results of this study can enhance the understanding of the evolution of meandering rivers in response to human activities, and may serve as a rational reference for managing the meandering rivers downstream of cascade reservoirs.

Analytical procedure for determining the mass of a portfolio of bank deposits, based on the statistical synthesis of historical data at an established time interval

In the framework of this scientific research, an extensive analysis of the statistical and mathematical methods of step-by-step determination of the mass of a portfolio of bank deposits will be carried out, having a wide spectrum of historical data, which describe an evolution over time of the portfolio. This procedure includes several steps such as: obtaining historical data and conditionally extracting deposits from databases using SQL scripts and replacing the selected information in the Microsoft Excel environment to be analyzed later. Based on the data already statistically and graphically processed, mathematical models and algorithms will be used to determine the mass of the deposit portfolio, previously extracted from databases. Certainly, methods of automating the process detailed in this scientific article will also be described.

Cyber Fraud, Causes and Its Effect on Money Deposit Banks

The study examined cyber fraud, causes and its effect on money deposit banks (DMB) in Nigeria: a study of Zenith Bank. The main objective is to examine electronic frauds, causes and its challenges in the banking sector. The study is hinged on two hypotheses; 49 branches; sample of 557 staff. Structured questionnaire was used to capture the response of the bank staff and it was analyzed using statistical package for social science version 27 (SPSS). Descriptive statistics and multiple regression were employed in the data analysis. Among the findings were accounting fraud by bank staff, identity theft, money laundering, phishing, pharming, computer virus, lack of oversight function,lack of standards, financial loss, absence of national central control, lack of credible infrastructure, porous internet, lack of national functional database, and inadequate awareness by bank customers were the challenges militating the effort towards curbing the cyber fraud in the banking system in Nigeria. The findings also revealed that cybercrime reduced productivity; vulnerability of banks Information and Communication Technology (ICT) systems and security audit. The study recommends adequate antivirus and antimalware software technology and the use of multi-factor authentication, use of biometrics, automatic logout are the solutions identified to curb cybercrimes in banks. The study concluded that the place of security in the cyber space of banks in Nigeria cannot be oversemphasied, therefore necessary measures should be put in place towards mitigating cybercrime in Zenith Bank. Equally, Zenith Bank should employ stringent measures to monitor staff activities especially in the confidentiality of customer information, cyber security audit should be done on regular basis, sensitization of bank customers, and Multifactor authentication, biometrics and automatic log out, and strong firewall should be adopted by Zenith Bank.

Evaluation of the Fundamental Differences that Distinguish Participation Banking from Deposit Banks in Turkiye

Participation banking, or, more broadly, participation finance, continues to exist as a sector different from deposit banks in principle, purpose, and practice, developing at national and international levels. Understanding the difference between participation banking and deposit banks also provides accurate observation of the operation, processes, and results reflections. For this reason, this study examines the fundamental differences that separate participation and conventional banks from each other. Firstly, the study includes elements that differentiate participation banking conceptually and based on basic operating principles. The different structures of participation banks in pricing and balance sheets constitute the basis of the operating mechanism. For this reason, fund collection and allocation methods are explained in detail together with this structure. As a result, the participation banking sector, which continues its development as an alternative finance, was born from a different approach and has differentiated itself from deposit banks in many areas. Knowing these differences is essential in supporting the correct reading and analysis of the sector.

THE IMPACT OF INTERNAL FACTORS ON RETURN ON ASSETS RATIO IN DEPOSIT BANKS

This study examines the impact of endogenous factors on the return on assets ratio in publicly owned deposit banks in Turkey. The sample of the study covers 44 quarters of data of publicly owned deposit banks between 2013:1-2023:4 and the data are obtained from the website of the Banks Association of Turkey. In the study, linear regression analysis is applied. In the findings, the null hypotheses regarding the autocorrelation and variance problems and the specification error of the model are rejected since these problems are not present in the model. The results indicate statistically significant and positive association between return on assets ratio and return on equity ratio and fixed assets/total assets. However, there is a statistically insignificant and negative correlation between return on assets ratio and capital adequacy ratio and total loans/total assets.

The impact of securities financing arrangements on the allocation of capital

Securities financing arrangements (SFA) allow investors to use short-term credit to leverage their investments in securities. Largely ignored by economists prior to the financial crisis of 2007–2008, research since that time has implicated SFA in creating financial instability. The creditors in the agreements have been compared to bank depositors who can create a liquidity crisis by withdrawing their funds. While not denying the instability problem, the focus of this paper is the effect of SFA on the allocation of capital in the real economy. I provide institutional context by tracing the evolution of SFA over the past four decades and relate the evolution to legislative changes initiated by the financial sector. Next, I outline a model to elucidate the essential features of a system of securitized finance that relies on SFA. With the aid of the model, I analyze the incentives inherent in the system and show how they can lead to a distortion in the allocation of capital. I conclude that SFA have served the interests of the financial community, but that they have not always delivered improvements to the wider economy.

Impact of Oil Price Shocks on Islamic and Conventional Bank Performance: Empirical Evidence from Saudi Arabia

This paper aims to investigate and compare the effect of oil price shocks on the bank performance at the aggregate level as well as the level of conventional and Islamic banks. The Autoregressive Distributed Lag (ARDL) methodology was adopted to analyze a panel of 10 Saudi banks, including 6 conventional and 4 Islamic banks, between 2006 Q1 and 2022 Q4. The results revealed that oil price shocks have a direct impact on banking performance. A rise (fall) in oil prices led to an increase (decrease) in bank performance through the channel of price-induced bank deposits. Additionally, oil price shocks have asymmetric effects, with positive oil shocks having a greater impact on bank performance than negative shocks. The findings highlighted that conventional banks tend to benefit more from oil price shocks, especially during oil price booms, as they experience higher positive impacts. However, during oil price busts, Islamic banks were more adversely impacted by oil shocks.

Aspects of Growth in the District Central Co-Operative Bank in India

The reserves are essential to Co-operative banks since they are involved in so many different aspects of the banking industry. The Credit Co-operative Societies Act, which was subsequently revised in 1912, and the establishment of Co-operative banks with an installation base were both done by the government in 1904. Rather of emphasising rural financing, the main Agriculture Credit Co-operative Society Act concentrates on long-term credit. The article’s objectives are to evaluate the reserve funds and deposits of Indian Co-operative banks and investigate their development factors. Journals, papers, and other publications will be among the sources from which secondary data will be gathered. The data will be interpreted and analysed using statistical methods, and the results will be examined using charts, bar graphs, clustered column graphs, and Pai charts.

UKRAINIANS IN POLAND AND UKRAINE: IS THE WAR CRISIS ABLE TO CHANGE PATTERNS OF FINANCIAL BEHAVIOUR

The russian war against Ukraine caused a large wave of displaced people both inside and outside the country. According to UNHCR as of 2023, more than 1.6 million Ukrainian citizens applied for protection status in Poland and 4.9 million people received internally displaced status in Ukraine. This paper aims to analyse the data from a 2023 survey of internally displaced Ukrainians and those who are considered refugees to identify how their financial patterns have changed and what measures can be applied for adjustment to a new environment. The results show that there are no significant changes in patterns of financial behaviour, however, both groups demonstrate coping strategies: more than 50% in both groups shorten their financial horizon plans. Their expenditures are focused mostly on essential needs. In both countries, Ukrainians invest less because of the decrease in their income. As well, the majority in both groups do not invest at all. Bank deposits remain the most popular investment for Ukrainians (in Ukraine is more than 25%, and in Poland is more than 15%). The real estate objects in Ukraine are less attractive because of security as before 2022. At the same time, Ukrainians are searching for alternative ways of investment. Ukrainians demonstrate a high level of using different digital technologies for different purposes, including personal finance. The fintech solutions are recommended to facilitate better decision-making in personal finance and change the patterns of financial behaviour. Fintech can increase the financial inclusion of IDPs in Ukraine and migrants in Poland and direct money flows for investment for further their pension payments.

설명 가능한 인공지능을 활용한 은행대출연체 예측 모델 연구

[Purpose] This study aims to create a loan default prediction model using machine learning, a core concept of AI technology, and explainable AI (XAI) techniques, and to compare and evaluate it against highly interpretable models such as logistic regression. [Methodology] This study utilizes the data of household loan customers of Local Bank A in South Korea from December 2020 to June 2022 to generate and compare the logistic regression model and the XGBoost model. We used SHAP, one of the XAI techniques, to explain the XGBoost model. [Findings] The XGBoost model shows better prediction performance than the logistic regression model. By applying SHAP to the XGBoost model, we identify key predictors： credit rating, average bank deposit balance over the past six months, card loan risk rating, K rating agency’s multiple debt risk index, average core deposit balance over the past six months, and the current interest rate of the loan account. [Implications] The machine learning model (XGBoost) combined with XAI shows better prediction performance than the logistic regression model, and the key predictors identified by the two models are similar. Therefore, the combined model could serve as an alternative to the logistic regression model commonly used in business research.

Systemic bank runs without aggregate risk: How a misallocation of liquidity may trigger a solvency crisis

We develop a general equilibrium model of self-fulfilling bank runs. The key novelty is the way in which the banking system’s assets and liabilities are connected. Banks issue loans to entrepreneurs who sell goods to households, which in turn pay for the goods by redeeming bank deposits. The return on bank assets is thus contingent on households being able to withdraw their deposits. In a run, not all households that wish to consume manage to withdraw, since part of banks’ cash reserves end up in the hands of households without consumption needs. This misallocation of liquidity lowers revenues of entrepreneurs and bank asset returns, thereby rationalising the run. Interventions that restrict redemptions in a run can be self-defeating due to their negative effect on demand in goods markets. We show how runs can sometimes be prevented with combinations of deposit freezes and redemption penalties as well as with the provision of emergency liquidity.

Financial Portfolio Analysis of Single Households: Monthly Saving and Financial Assets

The purpose of this study was to analyze the financial portfolios of single-person households. For the analysis, data from the Korean Labor Panel Survey (2021) was utilized, comprising 2,905 single-person households. The major findings are as follows: First, the proportion of households with monthly savings was 32.0%, while the proportion of households holding financial assets was 72.1%. Second, regarding the composition of monthly savings, single-person households predominantly held savings accounts (93.3%), followed by insurance (4.7%), with cumulative funds at a mere 0.8%. The composition of financial assets showed that the majority were in bank deposits (78.5%), followed by risk management assets (18.0%), and investment assets (2.4%). Third, multivariate analysis results revealed that younger age, higher education level, and better financial factors were associated with a higher probability of having monthly savings. The results for financial assets were largely similar, with females showing a higher likelihood of asset possession compared to males. Fourth, the proportions of both bank savings in total savings and insurance generally had opposing effects. Fifth, age group had the greatest influence on the proportions of safety and insurance assets, followed by income group. Middle-aged households had lower proportions of safety assets but higher proportions of insurance assets compared to young households, while the opposite trend was observed for elderly households. Middle-income households had higher proportions of insurance assets compared to low-income households, whereas high-income households had higher proportions of investment assets. Lastly, cluster analysis categorized single-person households' financial portfolios into five groups: Group 1 (32.2%): "Old-Sustain" characterized by insufficient current income but economically stable retirement. Group 2 (29.4%): "Financially Active" engaging in various financial activities due to relatively high education and employment rates. Group 3 (28.0%): "Financially Inactive" classified as elderly groups with minimal financial activities. Group 4 (9.1%): "Risk Financial Structure" consisting of relatively young individuals focused on risk management assets but facing issues in financial asset management due to high-risk assets and financial loans. Group 5 (1.3%): "Stable-Insurance Oriented" with high financial assets and income concentrated in insurance for both savings and financial assets.