Do bank-specific factors drive bank deposits in Ghana?

ÜNVAN Y. A., Yakubu I. N.

Journal of Computational and Applied Mathematics, vol.376, 2020 (SCI-Expanded, Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 376
  • Publication Date: 2020
  • Doi Number: 10.1016/j.cam.2020.112827
  • Journal Name: Journal of Computational and Applied Mathematics
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, Aerospace Database, Applied Science & Technology Source, Communication Abstracts, Compendex, Computer & Applied Sciences, INSPEC, MathSciNet, Metadex, zbMATH, DIALNET, Civil Engineering Abstracts
  • Keywords: Bank-specific, Commercial banks, Deposit, Ghana, Random effects
  • Ankara Yıldırım Beyazıt University Affiliated: Yes

Abstract

Using the random effects technique, this paper examines the impact of bank-specific factors on the volume of bank deposits in Ghana for the period 2008 to 2017. Controlling for macroeconomic factors, the results show that profitability, bank size, and liquidity are significant determinants of bank deposit. Macroeconomic instability proxied by inflation also exerts a negative significant impact on bank deposit. The findings further reveal that an increase in banks’ capital adequacy level does not essentially translate into deposit. A plausible implication from the findings is that efficient policies geared towards improving bank-specific factors, particularly bank size are essential for deposit attraction.