Analysing the relationship between banking performance and economic growth the case of commercial banking in Tanzania (1967-1994) by Abdarahaman J. Nkoba

Cover of: Analysing the relationship between banking performance and economic growth | Abdarahaman J. Nkoba

Published by Universitätsverlag Rudolf Trauner in Linz .

Written in English

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Subjects:

  • Banks and banking -- Tanzania.,
  • Finance -- Tanzania.,
  • Tanzania -- Economic conditions.

Edition Notes

Book details

StatementAbdarahaman J. Nkoba.
SeriesSchriften der Johannes-Kepler-Universität Linz -- 26
Classifications
LC ClassificationsHG3397.A6 N56 1997
The Physical Object
Paginationviii, 179 p.
Number of Pages179
ID Numbers
Open LibraryOL19790923M
ISBN 103853208770

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In this study we proxy RGDP for economic growth unlike the study by Douia () that used Gross Domestic Product (GDP).

Real GDP to us is a better measurement for economic growth. Therefore this study seeks to fill the research gap by focusing on the empirical actual relationship between Banking Sector Development and economic growth in Nigeria.

The study established a long-run relationship between economic growth and bank- and economic performance of the SSA region: An empirical assessment for China and to analyze the. The Impact of Commercial Banking Performance on Economic Growth. In book: Proceedings of the the present study focuses on analyzing the relationship between deposit, loan and advances and.

Nevertheless, the relationship between financial economic development and economic growth is highly controversial, as Boon pointed out. The supply leading theories believe that the development of financial sector is essential for economic growth, whereas the demand following theories consider financial development as merely sensitive to.

We test whether economic structure and growth foster banking sector development. To test our hypotheses, we construct a panel sample of all countries in the world during – We find that banking sector development has a negative effect on agricultural sector development but exerts no effect on industrial sector by: 6.

role of the banks is said to be a catalyst for the economic performance and growth. This function is of utmost important to any economy that intends to be viable with respect to economic growth and development because it creates links between the surplus and the deficient units of an economy (Osabuohein and Duruji, ).

Islamic banking: A performance analysis. Its performance is crucial in determining a country’s economic growth. This paper examines the performance of commercial retail banks (conventional. Early economists like [36] ; [31], have strongly supported the view of finance led caused relationship between finance and economic growth.

These authors are of the opinion that causality proceeds from financial to economic development, it is only Analysing the relationship between banking performance and economic growth book a later stage that financial development leads on to growth.

Demand-Following Hypothesis. Over the period, specialists investigated the effects of financial development and capital market development on economic growth considering either bank-based or. properly establishing relationship between the items of Balance Sheet and Profit & Loss Account. It helps in better understanding of banks financial position, growth and performance by analyzing the financial statements with various tools and evaluating the relationship between various elements of financial statements.

Source: the above data are from the world bank database. The average annual CPI growth rate and average annual GDP growth rate in Brazil and Russia are averages.

LITERATURE REVIEW As for the relationship between inflation and economic growth, there has been no consensus in academic circles.

The. We analyzed, using SPSSS, the main indicators characterizing the relationship between financial sector development in our country, showing that there is a significant relationship between capitalization and loan rate, M2, the rate of bank assets and domestic credit from the banking sector.

© Published by Elsevier Ltd. Selection and peer. The empirical results obtained by the Johansen method and ADF test suggest the existence of a stable long-run relationship between stock market capitalization, bank credit and growth rate of real GDP.

While my analysis shows a positive relationship between financial development and economic growth, more research needs to be conducted in order to determine causality between the two. Although there is a two-way relationship, it is possible that faster-growing countries tend to place more emphasis on financial development.

Banking sector development and economic growth developing countries: A bootstrap panel Granger causality analysis Khalil Terzi1. Ali Bouchrika1 Abstract The purpose of this paper is to revisit the Granger causal relationship between banking sector development and economic growth for forty developing countries in the period.

[7] Studied the relationship between the banking performance and economic growth at stare level. Their study show the impact of banking performance on economic growth. Contrary to this, [8] investigating on the factors affecting the profitability of banks in Pakistan.

He takes the data of top fifteen commercial banks of a period connections between the operation of the financial system and economic growth. While subject to ample qualifications and countervailing views, the preponderance of evidence suggests that both financial intermediaries and markets matter for growth and that re-verse causality alone is not driving this relationship.

Furthermore, theory and evidence. Past studies revealed that there is a positive relationship between innovation and firm performance (Matear et al.,Prajogo et al.,Wu et al., ). But some of them indicated that there is a negative relationship between the innovation and firm performance (Subramanian & Nilakanta, ).

Innovation activities benefited for firms. Bank-specific factors Bank size. Kashyap, Rajan, and Stein () and Delechat et al. () observed the factors that influenced liquid asset holdings of banks and discovered that liquidity levels were significantly affected by bank size.

There were other studies also to observe that bank size was a significant variable that affected liquidity of banks (Bonfim and Kim, 1.

RoE may be less of a performance benchmark than a communication tool in the relationship between banks and markets. A comprehensive performance analysis framework needs to go beyond that kind of indicator – though not excluding it – and provide for a.

On firm specific factors influencing bank performance, the distribution networks, information systems and strategic positioning were regarded as key bank specific determinants of profitability.

A positive relationship between capital adequacy and performance. This paper addresses the question of whether commercial banking performance in Nepal reasons to economic growth. In order to answer this question, the present study focuses on analyzing the relationship between deposit, loan and advances and assets as proxy for performance of commercial banks while gross domestic product proxies economic growth.

Formal Banking and Economic Growth: Evidence from a Regression Discontinuity Analysis in India Nathaniel Young Abstract This paper investigates the e ects of formal banking expansion on economic growth.

I exploit a previously unstudied reform to bank branching policy in India, which led to. THE RELATIONSHIP BETWEEN BANKING CONCENTRATION AND ECONOMIC GROWTH Rujun Wang, Thesis Advisor: Adam Thomas, Ph.D.

ABSTRACT As an important determinant of economic growth, the influence of financial structure is a major concern for researchers and policymakers. This paper focuses on the association between economic growth and banking.

This paper examines the relationship between bank performance and economic growth at the state level. We develop a regional credit view to explain how, due to information costs, regional banking conditions can influence local economic activity by affecting a region's ability to fund local investments.

Macroeconomic performance and outlook Real GDP growth slowed to an estimated % in from % incaused by social unrest and fiscal consolidation to stabilize the public debt.

On the supply side, industry and services continued to lead growth in Industry was driven by construction, notably for industrial parks and infrastructure investments. The banking industry is an economic sector at the forefront of the U.S.

economy. Banks only have to keep 10% of each deposit made to them and can use the remaining money for loans. income. By establishing a secure relationship between the variables, a firm can analyse its financial performance in terms of profitability and viability.

The present study focus on measuring the performance of three large private sectors banks namely HDFC, ICICI and AXIS BANK through extensive use of key financial ratios. Part IV of the book comprises six chapters discussing the interactions between banking firms and the macroeconomy. This part of the book includes a discussion of the determinants of bank failures and crises, and the impact on financial stability, institutional development, and economic growth.

examined the relationship between finance and economic growth, but specific empirical studies on the relationship between Islamic finance and economic growth, are not too many. So, this study tries to examine empirically the relationship between Islamic finance and economic growth, and its direction in the UAE.

growth averaged 9 percent between /66 and /06 – an outstanding and uncontested economic performance record of any country in the world (Leith ).The country is also the longest liberal democracy in Africa with good governance record and market.

The study employed both correlation and panel regression analysis to identify the relationship between FDI and economic development on bank performance for the time period In the second model, the study used time series to estimate the relationship between FDI and economic growth.

Economic Growth since the Great Recession. When accounting for demographic realities (specifically, their impact on the labor force), the U.S.

economy has displayed a satisfactory performance and a healthy outlook since the end of the Great Recession. Formation and economic growth. The specific objectives are as follows: i. To analyze the impact of banks’ deposit mobilization on capital formation and economic growth in Nigeria.

To investigate the impact of other banks’ performance indicators such as credits to the economy and banks investment on Nigeria’s economic growth. iii. CAMEL analysis will be employed to analyse the financial data so as to ascertain the relationship between consolidation and bank performance BIBLIOGRAPHY Bernerd, B.P., (), The effect of recent changes in the financial sector development in Nigerian, Paper presented at the 15th General Assembly of the African rural and agricultural credit.

Bank of America set aside roughly $ billion for their $ billion loan book. Arriving at the provision for loan losses involves a high degree of judgment, representing management's best. of the study indicated that there is a strong (R=) relationship between macro-economic variables and financial performance of commercial banks.

The study also recorded an adjusted R-squared value of This implies % of the total variance in financial performance of the commercial banking sector in Kenya can be attributed to. However, the negative relationship between leadership styles and outcomes was of great interest.

Further studies can be done to explore these relationships in depth. Although current literature has proved that there exists a significant and positive relationship between leadership styles and performance outcomes. nature of the relationship between bank health and regional economic conditions has proven difficult.

Overall, the literature on this issue provides a mixed picture of the importance, size, and timing of regional indicators in models of bank conditions. The heterogeneity of the empirical results reflects, in part, variation in measures of.

Abstract: This paper investigates the impact of financial reforms on competitiveness and production efficiency of the banking sector, as well as the short‐term and long‐term impact on economic growth, in Egypt during – The results suggest that the reforms have a positive and significant effect on competitiveness and production efficiency.

Economic growth is currently an issue of global concern as most economies are finding it difficult to create the necessary employment opportunities and achieve meaningful growth. This research mobilizes three economic growth theories in trying to explain the relationship between the construction sector and economic growth.Santomero () give a comprehensive contemporary analysis of the role of the financial sector in economic performance.

It is therefore well justified that the performance of the financial sector receives extensive scrutiny from scholars and industry thinkers. While the efficiency of the financial markets has been studied and debated at.Various theoretical relationships exist between the several types of performance.

Figure 3 illustrates this with some examples. The classic structure-conduct-performance (SCP) theory holds that market structure determines competitive conduct and hence profits (referred to by the figure ‘1’).3 For instance.

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