Deposit Interest Rates Research Articles

The Retreat from BIST: Insights into Foreign Portfolio Investment Movements

The need for rapid growth and development in developing countries increases the demand for capital. As a result, foreign portfolio investments are of great importance, especially in emerging markets, as they help meet capital needs. However, their ability to move quickly also introduces high volatility to financial markets. This study examines changes in the share of foreign portfolio investors in Borsa Istanbul from 2004 to 2023, aiming to provide long-term insights to market participants. Initially, changes in the foreign portfolio investor ratio over time are graphically analyzed alongside the BIST 100 index and the average interest rate of deposits with a maturity of up to 3 months. These changes are evaluated in the context of both global and local developments. The study then investigates the causal relationship between the foreign portfolio investor ratio and the BIST 100 index using a cointegration test and a causality test based on the VECM model. The findings show a one-way causality from the BIST 100 index to the foreign portfolio investor ratio, indicating that foreign investors' market movements are largely influenced by the performance of the BIST 100, and local market dynamics significantly affect foreign capital inflows.

Performance evaluation of housing price index prediction model using DNN and SVR

This study used the base interest rate, mortgage interest rate, deposit interest rate, consumer price index, exchange rate, and composite stock price index as variables to predict the housing price index. The variables were normalized using the min-max normalization method. Machine learning methods, Deep Neural Networks (DNN) and Support Vector Regression (SVR), were employed to construct a prediction model, and the fit of the model was evaluated using the Root Mean Square Error (RMSE). The analysis results of the DNN model indicated that when applying the softplus activation function, the RMSE was 0.1298, resulting in the smallest prediction error, and the correlation coefficient between the predicted and actual values was highest at 0.9342. The analysis results of the SVR model using the Gaussian RBF kernel showed that the RMSE was smallest at 0.2781 when the parameters were set to C=100 and Gamma=0.1. Therefore, the DNN model was found to be more fit for predicting the housing price index. Additionally, it was confirmed that the consumer price index had a non-linear effect with a positive relationship, and the base interest rate had a linear effect with a negative relationship.

A bank-level analysis of interest rate pass-through in South Africa

We study the pass-through of policy rate hikes and cuts to household and corporate lending and deposit interest rates in South Africa over the period January 2009 to December 2020. We show that rate hikes are typically passed through to mortgage interest rates completely while rate cuts are not. This asymmetry is more prevalent for household than corporate mortgages. Pass-through to household and corporate call deposit interest rates is typically complete, but cheque account interest rates are highly sticky and experience weak pass-through. Our results indicate that banks’ pass-through decisions often impose greater costs on households than firms, and may blunt the stimulatory effect of rate cuts by weakening their impact on debt servicing costs and the remuneration of deposit balances.

RESEARCH ON THE INFLUENCE OF INDUSTRIAL HERITAGE TOURISM INTERACTION BEHAVIOR ON VALUE CO-CREATION

This article is dedicated to an in-depth analysis of how interest rate adjustments in the financial sector reflect subtle changes in macroeconomic policies and reveal the complex motivations behind the behavior of market participants. With qualitative research methods, we carefully examined the launch of China's inter-bank lending market in 1996, the removal of the deposit interest rate ceiling in 2015, and the comprehensive reform of the loan market interest rate quotation mechanism in 2019. This study examined the intrinsic connections between interactive behavior, experiential value, and value co-creation in the field of industrial heritage tourism, specifically focusing on the moderating role of cultural identity. The study used research methods like structural equation modeling to confirm that interactive behavior has a significant positive effect on value co-creation. It also found that cultural identity positively moderates the relationship between experiential value and value co-creation. These findings not only enrich relevant theories but also provide practical guidance for the development of industrial heritage tourism. The results indicate that industrial heritage tourism destinations should prioritize interactive experiences for visitors, design interactive activities that cater to diverse experiential needs, and enhance visitors' sense of identity with industrial heritage culture to facilitate value co-creation and promote sustainable development in industrial heritage tourism.

IMPACT OF COMMERCIAL BANK’S CREDIT ON MANUFACTURING SECTOR OUTPUT IN NIGERIA

<p>This study examines the impact of commercial banks' credit (CBC) on manufacturing sector output (MSO) in Nigeria from 1992 to 2021 using Ex-Post Factor Research Design Approach. The study’s findings indicate that commercial banks credit (CBC) has a beneficial and substantial impact on manufacturing sector output (MSO). The long-term value of CBC has a positive and substantial impact on MSO. A 1% rise in Credit to Small and Medium Businesses (CSM) led to a 0.1866% increase in MSO. Conversely, a unit increase in deposit interest rate (DINR) resulted in a 0.0081% fall in MSO. In the long run, a unit increase in Government Capital Expenditure (GOV) caused a 0.1482% increase in MSO. Therefore, the study recommends that using its monetary policies, federal government can make an efficient policy that allows the manufacturing sector and small and medium enterprises to access bank credit at low interest rates.</p>

Analyzing the dynamics of monetary policy and economic growth in Ethiopia: an autoregressive distributed lag (ARDL) approach

Numerous studies conducted by various scholars have aimed to ascertain the impact of monetary policy on economic growth. However, these empirical investigations have not reached a unanimous consensus. Therefore, this study analyzes the effect of monetary policy. To address this objective, this study employed ARDL and error correction model (ECM) based on annual data from 1993 to 2022. Granger causality test was also employed to check the direction of causal effects of one variable on the other variable. All required pre and post estimation tests were performed and verified that the model was statistically viable. The study revealed that, in the short run, deposit interest rate, reserve required amount, and open market operation have positive and statistically significant effects on real GDP growth of Ethiopia; however, money supply has negative and statistically significant effects on real GDP growth of Ethiopia. In the long run, money supply has positive and statistically significant effects on real GDP growth of Ethiopia; however, deposit interest rate and reserve required have negative and statistically significant effects on real GDP growth of Ethiopia. To sum up, in the short run, contractionary monetary policy was promising, and in the long run, expansionary monetary policy was favorable for economic growth. The Granger causality test result shows that there is bidirectional causality between monetary policy and economic growth; except there was a unidirectional relationship between deposit interest rate and economic growth. Ultimately, this research suggests the following policy recommendation: for short-term economic enhancement, it is advisable for the government to opt for a contractionary monetary policy rather than an expansionary one. On the other hand, for long-term economic improvement, an expansionary monetary policy is more favorable than a contractionary one.

A Difference Equation of Banking Loan with Nonlinear Deposit Interest Rate

This paper considers a banking loan model using a difference equation with a nonlinear deposit interest rate. The construction of the model is based on a simple bank balance sheet composition and a gradient adjustment process. The model produces two unstable loan equilibriums and one stable equilibrium when the parameter corresponding to the deposit interest rate is situated between its transcritical and flip bifurcations. Some numerical simulations are presented to align with the analytical findings, such as the bifurcation diagram, Lyapunov exponent, cobweb diagram, and contour plot sensitivity. The significance of our result is that the banking regulator may consider the lower and upper bounds for setting the nonlinear interest rate regulation and provide a control regulation for other banking factors to maintain loan stability.

Supply and demand behaviors in the Chinese emission allowances pledge credit market under different value type: An evolutionary game analysis

Chinese Emission Allowances (CEAs) pledge credit provides a new way for banks to reduce green credit risks and for low-carbon enterprises to improve the credit availability. However, insufficient supply and demand is the main dilemma of CEAs pledge credit in China. One of the reasons for this dilemma may be the neglect of the forward value of CEAs in value assessment. This research explores the decision-making behavior of the supply and demand subjects in the CEAs pledge credit market under different value types of CEAs. First, the improved B–S options pricing model with consideration of transaction costs is used in the construction of the payoff matrix to measure the option value of CEAs. The new matrix aims to place both the option value (corresponding to forward value) and the market value (corresponding to spot value) in the CEAs pledge value evaluation framework. Then, based on the new matrix, an evolutionary game model between key emission enterprises (KEEs) and commercial banks (CBs) is built to dynamically analyze the equilibrium state of supply and demand as well as the strategic interaction of participants in CEAs pledge credit market. Finally, numerical simulations demonstrate the driving factors of supply and demand for CEAs pledge credit. The research results show that compared to market value, the option value of CEAs is more conducive to stimulating the supply and demand of CEA pledge credit; and the shorter the remaining valid period of CEAs, the higher the participation enthusiasm of supply and demand parties. Furthermore, reducing low-carbon technology risks and increasing the carbon emissions trading prices at the end of pledge period can significantly improve the supply and demand of CEAs pledge credit, but the loan and deposit interest rates of CEAs pledge credit are ineffective.

Factors of BPD Deposit Interest Rate, Government Bank Deposit Interest Rate, Inflation Rate, Economic Growth (GDP) and Money Supply to the Rupiah Exchange Rate per US dollar in Indonesia for the Period 2004 - 2021

The study aims to analyze the effect of the BPD Deposit Interest Rate Factor, Government Bank Deposit Interest Rate, Inflation Rate, economic growth, and money supply affecting the exchange rate of the rupiah per US dollar in 2004-2021 partially and simultaneously. The research method uses secondary data in the form of panel data and cross section for 18 years (quarterly data on 26 provinces in Indonesia). Literature survey research from BI, BPD, and BPS Center. Quantitative analysis method using multiple linear regression analysis tools. The results showed that (1) partially, the interest rate factor of Government Bank deposits, the money supply has a positive but insignificant effect on the exchange rate of the rupiah per US dollar. Regional Development Bank deposit interest rates, inflation rates, and economic growth have a negative but significant effect on the exchange rate of the rupiah per US dollar; and (2) simultaneously, the factors of interest rates on deposits of BPD, interest rates on deposits of Government Banks, inflation rates, economic growth, money supply have a significant effect on the exchange rate of rupiah per US dollar. An increase in interest rates on deposits of Government Banks and money supply, a decrease in interest rates on deposits of BPD, inflation rates, and economic growth will increase the exchange rate of rupiah (depreciated).

Determinants of the personal savings rate in the Kingdom of Saudi Arabia using time savings deposits, 2012–2022

Personal saving is an important indicator of future economic prosperity. Despite the growth in gross domestic product per capita (GDPPC) from 2012 to 2022 in the Kingdom of Saudi Arabia (KSA), the personal savings rate remains low. Only a few studies have explored savings in KSA, but no study that used time savings deposits (TSD) to measure personal savings exists. Thus, this study aims to investigate the determinants of personal savings employing TSD. Using data from the Saudi Central Bank from 2012 to 2022, this study empirically examines the determinants of TSD. The autoregressive distributed lag cointegration technique determines the long-run relationship between the study's variables. The study finds that GDPPC, deposit interest rates (DIR), consumer loans (CLs), and real estate loans (RELs) significantly impact personal savings. Only GDPPC and RELs have a significant negative impact on personal savings. The study is among the few to examine savings in KSA but, unlike other studies, used TSD as a measure of personal savings. In conclusion, several implications and recommendations for policymakers and financial institutions were presented.

Analyzing the Impact of Foreign Capital Inflows on Domestic Savings in Pakistan: A Comprehensive Time Series Investigation

This research delves into the ramifications of foreign capital inflows on domestic savings within the context of Pakistan. Utilizing annual time series data spanning from 1972 to 2022, this study employs the Auto Regressive Distributed Lag (ARDL) methodology alongside causality analysis. The findings underscore that factors such as labor force participation rate, gross fixed capital formation, deposit interest rate, foreign direct investment, trade, GDP growth, and foreign remittances exert a favorable influence on gross domestic savings over the long term. Conversely, variables encompassing age dependency, external debt stock, and net official development assistance exhibit a detrimental impact on gross domestic savings. Furthermore, the outcomes derived from the Granger causality test reveal the absence of causal relationships between foreign direct investment, remittances, trade, external debt, and gross domestic savings. Notably, unilateral causality is identified solely between net official development assistance and gross domestic savings.

Analyzing the Impact of Foreign Capital Inflows on Domestic Savings in Pakistan: A Comprehensive Time Series Investigation

This research delves into the ramifications of foreign capital inflows on domestic savings within the context of Pakistan. Utilizing annual time series data spanning from 1972 to 2022, this study employs the Auto Regressive Distributed Lag (ARDL) methodology alongside causality analysis. The findings underscore that factors such as labor force participation rate, gross fixed capital formation, deposit interest rate, foreign direct investment, trade, GDP growth, and foreign remittances exert a favorable influence on gross domestic savings over the long term. Conversely, variables encompassing age dependency, external debt stock, and net official development assistance exhibit a detrimental impact on gross domestic savings. Furthermore, the outcomes derived from the Granger causality test reveal the absence of causal relationships between foreign direct investment, remittances, trade, external debt, and gross domestic savings. Notably, unilateral causality is identified solely between net official development assistance and gross domestic savings.

The Influence of Deposit Interest Rates, BI 7 Day Reverse Repo Rate and Inflation on the Composite Stock Price Index in BEI during the 2020 - 2022 Pandemic

The aim of this research is to determine and understand the potential relationship between inflation, BI 7-day reverse repo rate, and deposit interest rates on the JCI movement in 2020 to 2022. The research approach used is a quantitative descriptive variation. This method uses three years of observational secondary data, to be precise from 2020 to 2022. Using Eviews 12 software, statistical tests and multiple regression analysis techniques are used in the data analysis process. The findings of this study show that the BI 7-day reverse repo rate and deposit interest rates both have quite a large and beneficial influence on the JCI movement. These results provide important information regarding stock market dynamics and economic variables that influence fluctuations in the IHSG value during the specified research period.

Empirical Evidence on the Impact of the Banking Sector on the Sierra Leone Economy

The study seeks to assess the impacts of the banking sector on the Sierra Leone economy. The Case study research design was adopted for this study. The Pooled OLS regression Model, Correlation Matrix, and Descriptive Statistics were employed in the study. E-Views was used to analyze the panel data using the Pooled OLS regression data, Descriptive statistics, and the Correlation Matrix. The Pooled OLS econometric result shows that Bank Liquid Reserves to Assets positively correlates with Gross Domestic Product with a coefficient value of 0.8425. It was further revealed that the relationship is highly significant (p-value of 0.0158 and a t-stat of 2.4560. Domestic credit to the Private Sector has a negative relationship with the Gross Domestic Product with a coefficient value of (-0.155367). This relationship was further revealed to be highly insignificant (p-value of 0.7533 and t-stats of -0.3152). The result also shows that Deposit Interest Rates have a positive coefficient value of (2.1040), which is also highly significant (p-value of 0.0013 and t-stats of 3.3050). The study further revealed that the Gross Domestic Product (% of GDP) has a negative relationship with the GDP, with a coefficient value of (-0.2055). It further revealed that the result is highly insignificant (p-value of 0.1383 and t-stats of -1.4944). On the other hand, Interest rate spread has a negative relationship with the Gross Domestic Product with a coefficient value of (- 3.0265). It was further revealed that the relationship is highly significant (pvalue of 0.0000 and t-stats of -4.8611)

The Effect of Percapita Income, Inflation, and 1-Month Time Deposit Interest Rate on the Number of 1-Month Time Deposit at PT. State Savings Bank (BTN) in Indonesia Year 2001-2022

This study aims to investigate the impact of Per Capita Income, Inflation Rate, and 1-Month Time Deposit Interest Rate on the Number of 1-Month Time Deposit at PT. Bank Tabungan Negara (BTN) in Indonesia during the period 2001-2022. The data used in this study is secondary and obtained from published financial statements, including official sources such as the websites of Bank Indonesia, Bank Tabungan Negara, and the Central Statistics Agency. The data collection time span covers the period from 2001 to 2022. This study requires three independent variables, namely Per Capita Income, Inflation Rate, and 1-Month Time Deposit Interest Rate, and also a dependent variable, namely the Number of 1-Month Time Deposit Deposits. The results showed that together, Per Capita Income, Inflation Rate, and 1-Month Time Deposit Interest Rate have a significant impact on the Number of 1-Month Time Deposit Deposits at PT. Bank Tabungan Negara (BTN) in Indonesia. This can be inferred from a statistical F probability value that is lower than the significance level of α (0.05), which is 0.0000000 < α (0.05). More specifically, individual Per Capita Income has been proven to have a significant influence on the Number of 1-Month Time Deposit Deposits at PT. Bank Tabungan Negara (BTN) in Indonesia. However, individually, the Inflation Rate and 1-Month Time Deposit Interest Rate are not proven to have a significant influence on the Number of 1-Month Time Deposit at PT. Bank Tabungan Negara (BTN) in Indonesia.The ability of the three independent variables to explain the dependent variable is measured by an adjusted R-Square value of 0.878021. This indicates that the contribution of the three independent variables to the dependent variable is about 87.8%, while the remaining 12.2% is influenced by other factors not studied in this study.

Finansal Varlıklar Arasındaki Volatilite İlişkisi: TVP-VAR Modeli

In the post-pandemic period, intense fluctuations in interest rates, inflation, and prices were observed in many countries around the world. This study was conducted to analyze the dynamic interconnectedness between financial assets during this turbulent period. The study was conducted using TVP-VAR analysis on daily data of one-month deposit interest rate, BIST100 index return, two-year bond interest rate, USDTRY exchange rate, gold ounce price and CDS premiums between 2018 and 2023. The results of the study show that the interaction between variables reached a very high level especially in the post-pandemic period and then decreased over the years. On the other hand, the BIST100 index, gold and CDS premium are net shock emitters, while deposits, USDTRY and bonds are net shock receivers. It is aimed that the results obtained will enable investors to choose the right investment instrument in today's financial markets where prices, returns, and rates fluctuate, and on the other hand, it is aimed to benefit firms and policymakers in terms of macro problems in the current geography.

Manufacturer’s Green Financing and CER Decisions under the Carbon Tax Policy and Capital Constraints

This study constructs a two-echelon low-carbon supply chain consisting of a single manufacturer and a retailer. The manufacturer’s initial capital is zero. The study analyzes three financing modes of the manufacturer by using the Stackelberg game model: external financing (the EF mode), internal financing (the IF mode), and trade credit financing (the TC mode). We found that the IF mode is superior to the EF mode while inferior to the TC mode regarding carbon emission reduction (CER), market demand, and the manufacturer’s profit. Additionally, the IF mode is superior to the EF mode regarding the retailer and supply chain’s profits and special to the TC mode only when the loan and deposit interest rate meet the specific conditions. The best financing mode for the manufacturer is the TC mode, but he needs to give some compensation to the retailer in order to make the retailer cooperate with him. The impact of carbon tax rate changes on the equilibrium solutions in the three financing modes is not only related to the change range of the carbon tax rate itself but also closely related to the initial carbon emissions. A high carbon tax rate can help stimulate the cleaner manufacturer to reduce carbon emissions, but a moderate carbon tax rate is more applicable to the polluting manufacturer. A numerical example is given to demonstrate some of the conclusions. Finally, the study provides managerial insights based on the analytical results.

Respon Suku Bunga Deposito dan Kredit Bank Umum terhadap Kebijakan Moneter Bank Indonesia

Many phenomena occur in International case studies, and various kinds of research show the relationship between interest rates (deposits and credits) and monetary policy carried out by Bank Indonesia. This type of research is quantitative research with secondary data taken from January 2010 to March 2021 (Time Series data), with two dependent variables: the first deposit interest rate and the second credit interest rate. There are three independent variables: BI Rate/BI7DRR, Economic Liquidity (M2), and Inflation. The analysis technique uses Multiple Linear Regression. The result is that the BI Rate/BI7DRR, Economic Liquidity, and Inflation together have a significant response/influence on deposit interest rates. Likewise, BI Rate/BI7DRR, Economic Liquidity, and Inflation have a practical response/impact on the credit interest rates at commercial banks.

Tác động của thanh khoản đến biến động giá cổ phiếu: Nghiên cứu trường hợp các ngân hàng thương mại cổ phần Việt Nam

Stock price is considered the top priority factor in attracting the attention of investors when investing in the stock market. In developed markets, changes in liquidity can help predict future changes in price volatility. The paper was conducted with the aim of analyzing the impact of banking liquidity on the stock price volatility of commercial banks listed on the Vietnam stock market. With a data sample of 27 commercial banks in the period from 2012 to 2022. By regressing panel data through system- GMM estimation (SGMM), the research results show that banking liquidity (LIQ) and bank size (SIZE) have a negative impact on banking stock price volatility (SPV). Meanwhile, changes in the deposit interest rate (IR) and changes in the exchange rate (EXR) have a positive impact on the volatility of banking stock prices (SPV). Besides, the study does not have enough evidence to prove that allowance for credit losses (AFCL), the price-to-earnings ratio (P/E) and the economic growth (GDP) have an impact on banking stock price volatility (SPV).

OPPORTUNITIES AND CHALLENGES IN E-BANKING SERVICE IN DIGITAL ERA

Another word often used interchangeably with electronic banking is “digital banking”. Both words are used equally often. However, strictly speaking, banks rarely or do not use paper money. However, the use of paper money is still widespread. Today's ATMs are an important part of the banking system because they allow consumers to withdraw money when needed. In the digital economy, there are almost no monetary transactions. Cash is often thought of as something that is free. But using cash is expensive. Foreign exchange spending is discussed in a Harward Business Review research article titled “Countries that would benefit most from a cashless society.” Consumer expenses (like ATM fees, foreign exchange commissions, etc.) are included in cash costs. Because, To analyze the impact of CBDC concerns on the global environment, Dong (2021) studied statistical models. If CBDCs are the only method of capturing value, then higher interest rates cannot lead to financial disintermediation. Due to the complementarity of these deposits and the deposits offered by CBDCs, banks and companies will lend more money and invest more in them. The central bank has asked banks and non-banking financial companies (NBFCs) to ensure that digital lending applications (DLA) do not automatically increase credit limits and access to resources their mobile. borrower. RBI said borrowers must be given time to review or seek exit from the digital loan by paying the principal and corresponding Annual Percentage Rate (APR) within this period without incurring penalties in 'Guide to digital lending' for regulated institutions or RESs (banks). and NBFC). However, it is still unclear how CBDC will actually affect the banking industry and the economy. Ten of the eleven countries that have introduced official digital currencies are small nations in the Eastern Caribbean, including Jamaica and the Bahamas. In October 2021, Nigeria became the only major country to introduce CBDC for retail. Therefore, the RBI will have to introduce CBDC and conduct pilot testing very carefully. Banks' operating costs have been significantly reduced thanks to digital banking. With this, banks can now offer better deposit interest rates while charging lower service fees. Bank profits increased due to reduced operating costs. Conclusion: Indian banks still have a long way to go before adopting technology at par with banks around the world. Keywords: Digital Banking, Digital Currency, Blockchain Technology, Digital Retail Lending