Determinants of bank credit in Ghana: A bounds-testing cointegration approach
-
Determinants of bank credit in Ghana: A bounds-testing cointegration approach
Gideon Baoko, Isaac Attah Acheampong And Muazu Ibrahim
Publisher: AREFC
Pub: 2017-12-09 02:15:22
Email it to me(Requires login) Download this PDF file
-
Using the Autoregressive Distributed Lag (ARDL) framework, this paper examines the relevant factors influencing allocation of bank credit to the private sector in the Ghanaian economy for the period 1970 to 2011. The results show that broad money supply, bank assets, real lending rate, and bank deposits are significant determinants of bank credit in both the short and long-run. Inflation also exerts significant positive impact only in the short-run. The study infers the lack of successive governments’ commitment to pursue policies that boost the supply of credit to the private sector. Our findings further reveal that increases in deposits mobilization by banks does not necessarily translate into supply of credit to the private sector. A plausible deduction from the findings is that reduced government’s domestic borrowing, lower cost of borrowing, and lower central bank reserve requirements for commercial banks in Ghana are needed to stimulate higher lending and credit demand.
Email it to me(Requires login) Download this PDF file
-
Email it to me(Requires login)
Download this PDF file
-
References are not ready for this file yet, please refer to reference from the PDF file
-
Keywords
Bank credit,ARDL cointegration,Real lending rate,Bank deposit,Ghana
Other Informations
-
Article Statistics (Metrics)
Viewed: 2448 times
Downloads: 278 times
-
Citations
-
Licencing
-
Keywords
Bank credit,ARDL cointegration,Real lending rate,Bank deposit,Ghana