The Relationship between Average Savings Deposit Rates and Average Commercial Bank Lending Rates in Ghana [version 1; peer review: 1 approved, 2 approved with reservations]
Background This study explores the relationship between average savings deposit rates and average commercial banks’ lending rates in Ghana from 2000 to 2020. Appreciating the connection is essential for developing successful policies that promote financial intermediation and economic growth. Methods...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
F1000 Research Ltd
2025-02-01
|
| Series: | F1000Research |
| Subjects: | |
| Online Access: | https://f1000research.com/articles/14-222/v1 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849246017537441792 |
|---|---|
| author | EDWIN ACKUAKU |
| author_facet | EDWIN ACKUAKU |
| author_sort | EDWIN ACKUAKU |
| collection | DOAJ |
| description | Background This study explores the relationship between average savings deposit rates and average commercial banks’ lending rates in Ghana from 2000 to 2020. Appreciating the connection is essential for developing successful policies that promote financial intermediation and economic growth. Methods A quantitative research approach was adopted by utilising the ARIMA model to forecast trends in average savings deposit rates and analyse their future behaviour. The study controlled for macroeconomic factors such as inflation (INF) and inter-bank weighted average (IWA) to assess their impact on both savings and lending rates. Results The findings reveal a significant positive correlation between average savings deposit rates and average lending rates with a correlation coefficient of 0.75 (p < 0.01). Inflation negatively impacts lending rates as evidenced by a coefficient of -0.40 (p < 0.05). Additionally, IWA exerts a minimal but favourable influence on average savings deposit rates. Conclusions The results underscore the need for effective policies aimed at stabilising savings deposit rates and fostering competition within the banking sector. Such measures are essential to enhance financial intermediation and promote sustainable economic growth in Ghana. |
| format | Article |
| id | doaj-art-b4dac96e25164d52a721a98f65296ed9 |
| institution | Kabale University |
| issn | 2046-1402 |
| language | English |
| publishDate | 2025-02-01 |
| publisher | F1000 Research Ltd |
| record_format | Article |
| series | F1000Research |
| spelling | doaj-art-b4dac96e25164d52a721a98f65296ed92025-08-20T03:58:36ZengF1000 Research LtdF1000Research2046-14022025-02-011410.12688/f1000research.161068.1177051The Relationship between Average Savings Deposit Rates and Average Commercial Bank Lending Rates in Ghana [version 1; peer review: 1 approved, 2 approved with reservations]EDWIN ACKUAKU0Department of Births and Deaths Registry, Accra, Greater Accra Region, GhanaBackground This study explores the relationship between average savings deposit rates and average commercial banks’ lending rates in Ghana from 2000 to 2020. Appreciating the connection is essential for developing successful policies that promote financial intermediation and economic growth. Methods A quantitative research approach was adopted by utilising the ARIMA model to forecast trends in average savings deposit rates and analyse their future behaviour. The study controlled for macroeconomic factors such as inflation (INF) and inter-bank weighted average (IWA) to assess their impact on both savings and lending rates. Results The findings reveal a significant positive correlation between average savings deposit rates and average lending rates with a correlation coefficient of 0.75 (p < 0.01). Inflation negatively impacts lending rates as evidenced by a coefficient of -0.40 (p < 0.05). Additionally, IWA exerts a minimal but favourable influence on average savings deposit rates. Conclusions The results underscore the need for effective policies aimed at stabilising savings deposit rates and fostering competition within the banking sector. Such measures are essential to enhance financial intermediation and promote sustainable economic growth in Ghana.https://f1000research.com/articles/14-222/v1Lending Rate Savings Deposit Financial Intermediation Inflation Monetary Policyeng |
| spellingShingle | EDWIN ACKUAKU The Relationship between Average Savings Deposit Rates and Average Commercial Bank Lending Rates in Ghana [version 1; peer review: 1 approved, 2 approved with reservations] F1000Research Lending Rate Savings Deposit Financial Intermediation Inflation Monetary Policy eng |
| title | The Relationship between Average Savings Deposit Rates and Average Commercial Bank Lending Rates in Ghana [version 1; peer review: 1 approved, 2 approved with reservations] |
| title_full | The Relationship between Average Savings Deposit Rates and Average Commercial Bank Lending Rates in Ghana [version 1; peer review: 1 approved, 2 approved with reservations] |
| title_fullStr | The Relationship between Average Savings Deposit Rates and Average Commercial Bank Lending Rates in Ghana [version 1; peer review: 1 approved, 2 approved with reservations] |
| title_full_unstemmed | The Relationship between Average Savings Deposit Rates and Average Commercial Bank Lending Rates in Ghana [version 1; peer review: 1 approved, 2 approved with reservations] |
| title_short | The Relationship between Average Savings Deposit Rates and Average Commercial Bank Lending Rates in Ghana [version 1; peer review: 1 approved, 2 approved with reservations] |
| title_sort | relationship between average savings deposit rates and average commercial bank lending rates in ghana version 1 peer review 1 approved 2 approved with reservations |
| topic | Lending Rate Savings Deposit Financial Intermediation Inflation Monetary Policy eng |
| url | https://f1000research.com/articles/14-222/v1 |
| work_keys_str_mv | AT edwinackuaku therelationshipbetweenaveragesavingsdepositratesandaveragecommercialbanklendingratesinghanaversion1peerreview1approved2approvedwithreservations AT edwinackuaku relationshipbetweenaveragesavingsdepositratesandaveragecommercialbanklendingratesinghanaversion1peerreview1approved2approvedwithreservations |