DRIVERS OF DEPOSIT GROWTH IN NORTH MACEDONIA: AN EMPIRICAL STUDY
DOI:
https://doi.org/10.46763/Keywords:
total deposits, total loans, remittances, foreign exchange reserves, ARDL bounds testing approachAbstract
Abstract
This article seeks to examine the influence of bank-specific variables and macroeconomic factors on the growth of bank deposits in the Republic of North Macedonia.
The study employed the Autoregressive Distributed Lag (ARDL) bounds testing approach, using quarterly data from 2006Q1 to 2024Q2. The empirical results confirm the presence of cointegration among the variables. Furthermore, the analysis indicates that loans, remittances, and foreign exchange reserves have a statistically significant impact on deposit growth. On the other hand, the real change in GDP, weighted interest rates on deposits, CPI and the real change in net salaries do not result in a statistically significant change in deposits, in either the short or long term.
These findings have significant policy implications for decision-makers involved in monetary policy planning, especially in North Macedonia. Additionally, these results may provide valuable insights for other researchers interested in conducting further studies on this topic.
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