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An Empirical Analysis of Macroeconomic and Bank Specific Factors Ascertaining Bank Deposit: A Study on Bangladesh

Author

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  • Farhana Nasrin

    (Department of Business Administration, BGC Trust University Bangladesh, Chattogram 4381, Bangladesh.)

Abstract

Bank working capital is largely determined by the level of bank deposits. As the primary source of funds for carrying out lending activities, deposits are the lifeblood of a banking firm. More savings encourages more investment which in turn ensures economic growth. This paper tries to find out relevant factors influencing volume of deposit mobilization by commercial banks. The study is based on the opinion of 200 sample professionals from 29 listed private commercial banks in Bangladesh. The result shows that Government monetary policy, bank size, diversified services, state of local and national economy dominates the collection of bank deposit by commercial banks. Probable implication from the findings is investment friendly government monetary policy that can lead towards improving bank-specific factors as enhancing bank size and ensuring diversified services for more deposit attraction.

Suggested Citation

  • Farhana Nasrin, 2023. "An Empirical Analysis of Macroeconomic and Bank Specific Factors Ascertaining Bank Deposit: A Study on Bangladesh," International Journal of Economics and Financial Issues, Econjournals, vol. 13(3), pages 46-55, May.
    • Handle: RePEc:eco:journ1:2023-03-5
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Deposit; Macroeconomic Factors; Bank Specific factors; Private Commercial Bank;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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