Determinants of financial savings in commercial banks in Tanzania
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Date
2007
Authors
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Journal ISSN
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Publisher
University of Dar es Salaam
Abstract
This study investigates the Determinants of Financial Savings in Commercial Banks in Tanzania. The specific objectives of the study were; to examine the main determinants of financial savings in Tanzania; to measure elasticity’s of the factors which determine financial savings in Tanzania and to investigate the behavior of financial savings over time. To answer the research questions, two hypotheses were tested using Ordinary least squares from which long run relationship among the variables was established and using partial adjustment model short run relationship among the variables was established. The results suggest th.at increases in disposable income, deposit rate, population growth and financial reforms influences significantly financial savings. The analysis indicates that increases in disposable income, deposit rate, and population growth have positive impact on financial savings. An increase in inflation is found to have negative impact on financial savings. Furthermore, financial savings and lending rate were found to be significant in explaining credit available in commercial banks. These findings imply that disposable income, deposit rate, inflation, population growth, lending rate, financial savings and financial reforms play important role in influencing financial savings and credits available in commercial banks. Thus, policies that foster financial savings in commercial banks focusing on the above influential variables are highly recommended.
Description
Available in printed form, East Africana Collection, Dr. Wilbert Chagula Library
Keywords
financial savings, commercial banks, Tanzania
Citation
Sandi, R (2007) Determinants of financial savings in commercial banks in Tanzania.Master dissertation, University of Dar es Salaam, Dar es Salaam.