Munich Personal RePEc Archive

The Impact of Interest Rate on Bank

Deposits Evidence from the Nigerian
Banking Sector

Ojeaga, Paul and Ojeaga, Daniel and Odejimi, Deborah O.

Bergamo University Italy, University West Trolhattan, Igbinedion

University Okada

7 October 2013

Online at https://mpra.ub.uni-muenchen.de/53238/
MPRA Paper No. 53238, posted 10 Feb 2014 15:08 UTC
 The Impact of Interest Rate on Bank Deposits
Evidence from the Nigerian Banking Sector

*Paul Ojeaga1 PhD Bergamo University Italy

Daniel Ojeaga University West Trollhattan Sweden
Deborah O. Odejimi Igbinedion University Okada

Abstract

The study investigates the effect of interest rates on customer savings behavior in the Nigerian
banking sector, after identifying a host of factors that are likely to influence customer confidence
in commercial banks such as average income, commercial lending, legal rights strength, central
bank monetary policy and total annual commercial bank losses, using quantile regression
estimation method, a non parametric estimation process that is based on the premise that the
sample median will tend to that of the distribution and addresses issues of heteroscedastic errors
and data stringency associated with the data used in the study under question. We find that
interest rates were probably increasing bank deposits while income was also found to affect bank
deposits in general.

Keywords: Interest rates, bank deposits, income, loan growth, bank losses and monetary policy
JEL: E43, E52, G21 and G28.

1.0 Introduction

The dynamics between interest rate and customer savings behavior has not been overly
researched. While the topic has generated a lot of discussions, no conclusive agreement has been
reached as to the nature of how interest rates is likely to affect customer savings behavior
particularly in the Nigerian context, furthermore even if many studies have investigated the role
of interest rate on savings within the growth and financial business cycle context few have tried
to address customers savings concerns as a matter of primary interest using a non parametric
estimation technique as we do in this study.

A host of factors are likely to affect customer saving behavior in banks, some include the fixed
saving interest rates which is likely to affect customers incentive to save, country specific wage

1
We express thanks to the Department of Economics and Development Studies Igbinedion University Okada for
assistance during the preparation of this study. We also express thanks to Dr Ikpefan of Department Banking and
finance Covenant University Ota Nigeria for his support.
rates which will depict the average allowance available after the individual budget demands,
aggregate average annual bank losses which is likely to affect customer perception of how well
banks are doing, institutional and regulatory strength which depicts the level of oversight
function and internal control effectiveness, average bank lending, and country specific monetary
policy as exerted by the country’s apex financial agency such as the Central Bank.

Fixed savings account interest rates can also have strong consequences on overall average bank
deposit and in most cases it is also affected by bank specific lending interest rates since it is
customer deposits that are lent to private sector business with the expectations of returns on
borrowed capital, making nominal interest rates to have a back-effect on fixed savings interest
rates. Nominal interest rates therefore is likely to have an indirect causal effect on customer
savings through fixed savings account interest rates which will probably be true since interest on
savings are likely to be paid from returns on borrowed capital obtained from nominal interest on
borrowed capital.

Low interest rates has been known to drive output production in many developed economies, as
it creates enabling environment for private business expansion through the provision of easy
access to capital for further production purposes. In December 2013 the United States all share
index continued to soar amidst the Fed report to maintain interest rates at an all time low
following the withdrawal of the stimulus finally signaling an end to the US financial crises.
While nominal interest rate depicts the riskiness of the business environment it can also be used
as a tool by a country’s federal regulating agency in time of crisis for financial stabilization and
quantitative easing of the economy.

The study investigates the impact of interest rates on bank deposits in Nigeria, using quantile
regression estimation a non parametric estimation method that is based on the premise that the
sample median will tend to that of the distribution and produces consistent estimates in the
presence of heteroscedastic errors and outliers in the response measurement, The rest of the
paper is divided into scope and objectives of study, review of literature, stylized facts on interest
rates and bank deposits, theory and methodology, empirical analysis and results, discussion of
results and the concluding sections.
2.0 Scope and Objectives

The paper presents empirical evidence of the factors that affect customer’s savings behavior
(measured as aggregate bank deposit in the study) in the Nigerian banking industry by reviewing
the effects of interest rates on bank deposits in Nigeria. The objectives of the study include:

a.) To examine the extent to which interest rate affects customer bank saving (bank deposits)
in the Nigeria banking sector.
b.) To determine the extent to which average wage rates affects aggregate bank deposits in
the Nigeria banking sector since customer excess allocation is likely to positively drive
up savings
c.) To examine the effect of institutional factors and bank internal controls on customers
savings perception in the Nigerian banking sector.
d.) To determine the effect of the CBN monetary policy on bank deposits in general in the
Nigerian banking sector.

3.0 Review of Literature

The review of past and current literature is carried out in this section. Past studies have
investigated the effect of nominal interest rates on growth. Bernake and Gertler (1995) state that
the credit channel is characterized by two channels which are the balance sheet channel and the
bank lending channel, this was probably true since access to credit will depend on current
balance and report of credit committees.

Nominal interest rate is also fixed by a country apex bank and has the capacity to affect bank
deposit making bank cost of funds to increase with country specific monetary policy Bernanke
and Blinder (1988), Kashyap and Stein (1994, 2000) and Walsh (2003).

Others also make a case for portfolio substitution arguing that policy stringency is likely to drive
up cost of credit access and have a negative effect on deposit yields forcing household to
economize Kishan and Opiela (2000) Ehrmann et al (2001). They argue extensively that a
nation’s Central Bank policy is likely to have strong consequences of bank deposits forcing
banks to channel financing away from cheap deposits to more expensive liabilities.

The study by Martinez Peria and Schmukler (2000) analyzed the relationship between perceived
bank risk and interest rate for Latin America while Ellis and Flannery (1992), Brewer and
Monschean (1994) and Keeley (1990) analyzed the same effect for the United States and finds
that there exist a relationship between interest rates and perceived bank risk.

The study by Galac and Kraft (2000) investigates deposit interest rates for the US and find that
foreign bank were found to offer lower deposit interest rates than domestic banks, this negative
interest rate elasticity shows larger differentials for foreign banks in times of crisis compared to
domestic banks.

This study investigates the impact of interest rates on bank deposit in Nigeria, the findings can
have strong implication for the apex Bank monetary policy as well as provide useful incites for
many commercial bank, on how interest rates affect bank deposits see the study by Walsh (2003)
for further discussion.

4.0 Stylized Facts on Interest Rates and Bank Deposit

In this section we present stylized facts on the study under question. Average bank deposits is
continually on the increase in Nigeria see Fig. 1 below, this can be attributed to sustained
customer excess revenue allocation after taking care of their yearly budgetary expenditure
concerns. Sustained growth particularly in global commodity prices and the reintroduction of
democratic rule since 1999 has meant that workers have been able to agitate through dialogue
adjustment to wage rates to meet with current inflation trends in the Nigerian economy.

The riskiness of the Nigerian business environment despite an annual average growth of
approximately 7.4 percent in the past 4 years is still a matter of concern for the Central Bank of
Nigeria the apex monetary regulatory agency in Nigeria. Fig. 2 below shows that since the major
Nigerian banking reforms of 2009/2010 average interest rates have skyrocketed to over 10%
depicting the riskiness in the Nigeria business environment. The riskiness of the business
environment is likely to have a back effect of depositor’s perception of the Nigerian commercial
bank ability to maintain stable banking environment this is likely to affect overall liquidity of
banks. The expected relationship between interest rates and depositors perception will be one in
which interest rates will have a positive effect on deposits if the business environment becomes
relatively stable.

Fig. 1 Fig.2

Average Bank Deposits in Years Average Nominal Interest Rates in Years

12
16
15

10
In te r e s t R a te s
14
D e p o s its

8
13

6
12
11

1990 1995 2000 2005 2010 1990 1995 2000 2005 2010
Year Year

Note: Average bank deposits have consistently been on the increase, this is attributable to steady economic growth
and improved wages that have led to excess budget allocation for individuals, driving up customer deposits in
commercial banks, while interest have been fluctuating and cosistently above 5%, depicting the riskiness of the
Nigerian business environment. This was particularly noticeable in the aftermatch of the 2007 sub-prime mortgage
crises that led to the global financial crisis.

Aggregate income is also on the increase see fig3 this is particularly noticeable from the early
2000s, legal rights strength which we use as a measure of oversight function is also on the
decrease meaning that regulatory agencies effectiveness in checking irregular activities in the
Nigerian banking sector is not likely to be yielding sufficient results to boost customer
perceptions regarding the integrity of the management of Nigerian banks.

The drastic reduction in the oversight functions see fig.4 also depicts judiary strength in
effectively prosecuting bank officials accused of fraud and other miscoduct. The 2010
commercial bank management crises also brings to fore these existing weaknesses since the
judiciary has till date not be able to arrive at conclusive verdicts of the indicted bank
management staffs concerned, the intervention by government and political officials also remains
a constant reminder of the weakness of the judiciary and regulatory agencies in effectively
checking banking irregularities in the banking sector.

Fig.3 Fig.4

AverageIncome in Years Average strenght of oversight regulations in years

130
7 .5

120
7

o v e r s ig h t re g u la tio n
110
In c o m e
6.5

100
6

90
5 .5

80

1990 1995 2000 2005 2010 1990 1995 2000 2005 2010
Year Year

Note: Income has steadily been on the increase, this was noticeable in the mid 2000s of the last decade, and this is
attributable to Nigeria’s sustained growth trends leading to increases in wages and private sector business growth.
On the other hand bank oversight regulatory measure has weakened considerably, the weakness of the Central
oversight policy is likely to harm investor’s perception and depositor’s confidence in the Nigeria banking sector.

Commercial lending is also at an all time low and has not returned to the pre 1990s levels see
fig.5 showing that commercial banks were not lending to the private sector in a significant
manner that can drive output production in the real sector. This was probably due to the riskiness
of the Nigerian business environment that was probably driving interest rates up and making
borrowers to be averse to borrowing because of the high tendency of likely default fears. The
stringency of the borrowing process by banks on borrowers was also an issue as this was also
probably discouraging private individuals and businesses from lending.

Banks were also recording high amount of losses see fig. 6 this can be attributed to
mismanagement in banks and high fraud occurrences particularly management fraud been
perpetuated on a large scale in the Nigerian banking sector, once again confirming the assertion
that over sight functions were probably at an all time low, or that regulatory agencies official
were probably corroborating with bank officials in allowing for lapses in the regulatory measures
enforcement process in the Nigerian banking sector.

Fig. 5 Fig.6

AverageBank Lending in Years Average losses in Years

5 .0e + 08

30000
0

20000
B a n k L e n d in g
- 5 .0 e + 0 8

Losses
10000
- 1 .0 e + 0 9
-1.5 e+ 0 9

1990 1995 2000 2005 2010 1990 1995 2000 2005 2010
Year Year

Note: Lending is at an all time low depicting that most Nigerian commercial banks were failing in their role of
primary responsibility to the private sector since loan growth accumulation is low. Losses are also on the increase,
due to poor lending trends in commercial banks which was likely attributable to high interest rates, this makes
private business to be averse to borrowing; therefore a rise in management fraud is often associated to these losses in
the Nigerian commercial bank sector.

5.0 Theory and Methodology

Past theory Kraft and Galac (2007) have estimated the impact of savings deposit interest rates on
bank failures using OLS and system GMM and find that fixed saving deposit interest rate has a
strong effect on bank failure since they depict the riskiness of the business environment. Theory
we rely on is one in which interest rates will affect deposit indirectly through the following
propositions.
a.) Interest rate is likely to drive up the cost of accessing capital in commercial banks which
could reduce lending by borrowers who will be averse to accessing such capital due to
the high tendency to default
b.) Poor commercial bank lending is likely to affect customer fixed savings deposit interest
rates, affecting depositor’s perception of commercial banks.
 c.) Finally poor perception of commercial banks by depositors is likely to lead to alternative
methods of savings by depositors such as investment in shares and other discount houses
that will be likely to offer higher interest rates on depositor’s capital.

The method of identification used in this paper is one in which interest rate is put in the bank
deposit model, we look at a list of variables that are likely to affect customer perception of
Nigerian commercial banks such as commercial banks annual losses, average wage rates
(income) in Nigeria, legal right strength the measure of oversight regulation strength, money
supply a measure of Central Bank monetary policy and average commercial bank losses which
captures management lapses, fraud occurrence rates and average commercial bank performance
in Nigeria. This notion is supported by Bernanke (2003) and Borio and Zhu (2007) who state that
interest rates and monetary policy will depict investors risk perception of the business
environment.

We present a theory where interest rates IR will therefore be affected by the immediate business
environment BE and country specific monetary policy MP, since the riskier the business
environment is the higher the interest rates. Also the apex bank intervention in the banking sector
can also affect investors perception particularly in times of crisis for instance the announcement
by the US Feds to keep interest rates low in January 2014, led to a soaring in the US all share
index. We can therefore express Interest rates as function of the impending business environment
and the Nigerian central bank policy as depicted in equation 1.

(1.) = +

We also account for Central Bank oversight activities and argue that this impact can measured
using the effectiveness of the Central Bank regulatory measures implementation, Central Bank
oversight activities will now be a function of its policy implementation PI and the country
specific strength of legal right enforcements SLR. Policy implementation will be weak in cases
of management fraud without effective prosecution by the judiciary and this could affect
depositor’s confidence in the apex bank regulatory strength.

(2.) CO = PI + SLR
Commercial bank losses can also harm depositor’s confidence in banks, most losses in Nigeria
commercial bank are often associated with poor banking ethics and management fraud in the
Nigeria banking sector. Deposit accumulation is also related to cases of management fraud
occurrences due high deposit gloat in banks leading to poor lending trends attributable to high
interest rates and stringent process of accessing capital in commercial banks. Bank losses can
therefore be expressed in this case as function of commercial bank lending BL and occurrences
of management fraud MF in the banking sector

(3.) LS= BL + MF

Deposits in commercial banks will now be a function of a host of variables that we identify to
affect bank growth and depositors confidence in the Nigeria commercial banking system.
Deposits DP will then be an increasing function of three factors which include Central Bank
oversight activities CO ≥ 0 , country specific income (or wage rates) IN ≥ 0and aggregate
commercial bank loans BL ≥ 0 and three decreasing functions interest rates IR≤ 0 which have
been consistently high and preventing loan growth which will affect savings deposit interest rates
in banks weakening depositors incentive to save in banks, bank losses LS ≤ 0 attributable to
poor management and management fraud occurrences and finally country specific money policy
which we capture using money supply MS ≤ 0.

(4.) DP =

Bank deposits will now be expressed as a function of f (IR, LS, IN, LS, BL and MS).
The model to be estimated can now be written below in equation 5, where deposit will depend on
interest rates and the list of exogenous variables and the error term.

(5.) = + + +

Where is a constant, is the vector of exogenous variables and is the error term. The
variable year is included in the model to account for annual differences in interest rates
fluctuations that can affect deposits. Interest rates and all other explanatory variables are lagged
(in this case by one period) to avoid issues of multi-co linearity, therefore deposits will depend
on interest rates from past periods. The method of estimation used as stated earlier is the quantile
regression estimation method a non-parametric estimation technique, which produces robust
results in the presence of heterscedasticity and outliers in the response measurement see
Machando and Silva (2013), allowing us to argue that our model is not likely to suffer from
misspecification due to the noisiness of the deposit variable. The bootstrapped simultaneous
quantile regression estimation also provides the opportunity for resampling the dataset and
testing the predictive capability of dataset due to the stringency in the data used in the study
however it does not account for heteroscedastic errors associated with the noisiness of the
deposit variable in the study making us to prefer the results from the qreg2 wrapper as posited by
Machando and Silva (2013).

6.0 Data and Sources

Times series data is used in this study, all data are obtained from Central Bank of Nigeria data
set and World Development Indicators of the World Bank data unless otherwise stated for the
period of 1989 to 2012 a period of twenty three years. Table 1 below also shows the list of
variables used in the study.

Table 1. List of Variables and Description

Variables Sources Abbreviations Description
Legal right strength(measure of World Bank data LR Measured using percentage of cases
domestic institutions) concluded in courts per year.
Deposits in Naira Central Bank of DP Total annual aggregate customer
Nigeria Data savings deposits in commercial banks
in Naira
Losses Central Bank of LR Aggregate yearly commercial bank
Nigeria Data losses in Naira
Interest rates Central Bank of IR Average yearly interest rates in years
Nigeria Data all in percentages
Income (Wage rates) World Bank data IN Yearly GDP per capita

Commercial Bank Lending World Bank data BL Aggregate commercial bank lending
in USD

Aggregate money supply in years in

Money Supply Central Bank Data MS Naira
Note: All data are obtained from Central Bank of Nigeria (CBN) data and the World Bank world development
indicator (WDI) data unless otherwise stated. The abbreviation USD represents United States Dollars. Deposit is the
aggregate sum of all yearly customer deposit in Naira in banks obtained from CBN data, nominal interest rates is the
average commercial bank lending rate interest in percentages.
Deposit is the aggregate sum of all yearly customer deposit in Naira in banks obtained from CBN
data , nominal interest rates is the average commercial bank lending rate interest in percentages,
bank losses are declared losses by banks in Naira obtained from CBN data, FDI is the inflow of
all foreign investment to the private sector of the Nigerian economy in constant USD, income is
the average GDP per capita in USD, strength legal strength is a measure of judicial effectiveness
using score data obtained from the world bank, bank lending is aggregate commercial bank
lending to the private sector in constant USD and money supply is the aggregate money in
circulation in constant USD.

7.0 Empirical Analysis and Results

In this section we argue in a critical manner why it should be believed that nominal interest rates
have a high tendency to affect customer saving behavior. In this case we state that due to the
nature of the relationship between interest rates and bank deposits that interest will have an
indirect causative effect on customer savings (deposit) that will be positive in nature since
returns from commercial banking activities such as borrowing to the private sector of the
economy will be used by banks in paying of fixed savings accounts interest rates. This allows us
to justify the reasons for the investigation of the impact of interest rates on bank deposits as the
measure of customer’s savings in the Nigerian banking sector.

Results
We present the results of the regression of interest rates on deposits below in table 2. The results
of the simultaneous quantile regression and the bootstrapped simultaneous quantile regressions
show that interest rates were not having a significant effect on deposits. The stringency of the
data set used in the study was probably affecting the results obtained from the first two
regression carried out where we try to check for the robustness of the predictive power of the
datasets see columns 1 and 2 in table 2.

The results of the quantile regression and quantile regression (qreg2) wrapper developed by
Machando and Silva (2013) where we controlled for heteroscedastic errors due to the noisy
nature of the deposit variable show that interest rates were having a positive effect on customer
savings (average annual bank deposits) in the Nigerian banking sector see columns 3 and 4 in
table 2.

Income was also affecting customer’s savings (bank deposits) although the effect income was
exerting on customer savings was weak see column 4 table 2. It depicted that the assertion that
increases in wage rates were probably driving up bank deposits since depositors were probably
saving up excess their excess revenue allocation after addressing their individual budgetary
concerns.

Other factors such as bank lending see column 3 table 2 was exerting a negative effect on bank
deposits since lending as stated earlier were at an all time low and lending was probably not
profitable for commercial banks due to the risky nature of the Nigerian business environment.
This result was not the same after controlling for the noisy nature of deposits see column 4 table.

Money supply also exerted a strong effect on customer savings see column 3 table 2, showing
that the Central Bank’s policy of bank consolidation were probably driving up investors
confidence in the banking sector. This result was also not the same after controlling for
heteroscedastic errors using the qreg2 wrapper in column 4 table 2.
Table2. Impact of Interest rate in customer deposits
(1) (2) (3) (4)
Variables Deposits Deposits Deposits Deposits

Interest rate 391.30 391.30 856.42*** 391.30***

(435.77) (419.73) (114.61) (127.66)
Income 6.82 6.82 -1.28 6.82*
(6.20) (4.35) (3.46) (3.68)
Legal rights strength -65.831 -65.831 114.16*** -65.831
(154.41) (140.57) (137.45) (91.74)
Bank lending 0.0003 0.0003 -0.006*** 0.0003
(0.003) (0.001) (0.001) (0.001)
Losses 97.64 97.64 1.110*** 97.64
(115) (151.4) (79.21) (62.3)
Money supply 452.84 452.84 1262.06*** 452.84
(342.76) (448.27) (197.04) (290.83)
Year effect No No Yes No
Observations 22 22 22 22
R-squared 0.901
Standard errors in parentheses
*** p<0.01, ** p<0.05, * p<0.1
Note: The results above highlight the simultaneous quantile regression results and the bootstrapped quantile
regression results in columns 1 and 2 were we resampled the dataset due to stringency of the number of observation.
The results show that interest rates were having no effect on depositors perception of the Nigerian banking sector.
However these estimation methods do not control for heteroscedastic errors in the regression model. The noisiness
of the deposit variable is likely to lead to model mis-specification the quantile regression wrapper qreg2 regression
results presented in column 4 show that interest rates is affecting deposits after accounting for the presence of
heteroscedasticity we rely on this preferred results in concluding that interest rates were affecting depositor
perception in Nigerian commercial banks.

8.0 Discussion of Results

Interestingly the results have strong implications for customer’s savings and stake holders in the
Nigerian banking sector particularly shareholders, management staff and banking regulatory
authorities.

Nominal interest rates were having strong positive effects on deposits and were probably
affecting customers savings in a significant manner, this was probably true since interest rates
were at an all time low before the 2007 financial crisis and counter measures taken by the
Central Bank of Nigeria regarding bank consolidation as well as sustained commodities prices
driven growth in Nigeria despite the global recession has sustained high customers savings
perception in the Nigeria banking system.

Income was also having significant effects on savings since excess revenue allocation were
available to be saved which was driving up customers deposits in commercial banks in Nigeria.
This was however not commensurate with commercial bank lending. The riskiness of the Nigeria
business environment was still an issue, this needs to be addressed by putting in place sufficient
cushions that could reduce the transaction cost of doing business through the development of
basic socio infrastructure that could improve business transaction profitability as well reducing
the cost of access to capital since the cost of capital itself was probably making borrowers to be
averse to borrowing for further production purposes since this will reduce profits and increase
the likelihood to default.

The predictive power of the dataset used in this study was also investigated while quantile
regression estimation is suitable for small sample analysis the results of the boostrapped
simultaneous quantile regression show that interest rates are not exerting a significant effect on
deposits, we present these results even though we disregard the effect of this predictive check on
the outcome of our findings since the qreg2 wrapper controls for heteroscedastic errors in the
response measurement of our datasets and the presence of outliers making us to have some
confidence in the qreg2 estimation results see Machando and Silva (2013) for further
discussions. All the objectives of the study are realized and the outcomes of the objectives are
listed below as follows;

a.) Interest rate were affecting customer bank saving (bank deposits) in the Nigeria banking
sector in a positive manner and driving up saving deposits in banks.
b.) Average wage rates were affecting aggregate bank deposits in the Nigeria banking sector
positively it was likely that customer excess budgetary allocation were driving up
savings in Nigerian commercial banks
c.) Institutional factors such as central bank oversight activities and other internal bank
controls and bank internal controls (measure using the legal rights strength index) were
having no effect on customer’s savings perception in the Nigerian banking sector since
 the preferred results using the qreg2 wrapper depict no effect on institutions on deposits
see column 4 table 2.
d.) CBN monetary policy were having no effect on bank deposits in general in the Nigerian
banking sector see the results in column 4 table 2 where .

9.0 Conclusions

In the concluding sections we discuss the policy implications of the effect of average annual
nominal interest rates on commercial bank deposits in Nigeria. The results obtained show that
bank oversight functions were currently exerting a weak effect on deposits. Also deposits were
probably driven not only by current interest rates but also by the sustained growth in the Nigeria
economy that have allowed for the upward review of wage rates, which was attributed to be
responsible for the availability of excess budget allocation to workers which were probably been
saved up in commercial banks.

Bank lending was found not to be commensurate with the current level of savings and banks
were probably failing in their primary obligation which is lending to private sector business and
individuals. It was also discovered that CBN monetary policy (measured using money supply)
were probably not effectively driving deposits despite its recent consolidation efforts, since the
impact of money supply on bank deposits were not robust and exerting no significant effect on
savings see column 3 and 4 table two.

The policy implication of the findings is that oversights regulations have to be strengthened,
while inflation has to be checked to keep wages above basic individual budgetary demands as it
stands currently. Other issues such as bank lending have to be encouraged by reducing nominal
interest rates and improving the business environment by developing infrastructure to reduce the
transaction cost of conducting business in the country, this is likely to make the business
environment less risky and encourage private sector business to be less averse to borrowing from
commercial banks since less riskier business environment could mean less likelihood to default
on bank loans.
Finally, bank consolidation such as mergers and other internal controls such as management
probes, and other bank reforms should be followed up with strategies to boost customers
confidence in banks through encouraging more transparency in the management of Nigeria
commercial banks, as this can increase depositors confidence in banks allowing the Central Bank
monetary policy to be used as a pointer by depositors to measure commercial banks management
effectiveness in running banks, which can have strong effects on deposits.
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