Impact of Interest Rate on Private Sector Credit; Evidence

Aftab, Nadeem; Jebran, Khalil; Ullah, Irfan; Awais, Muhammad

doi:10.53369/ayci1997

Cited by 8 publications

(5 citation statements)

References 1 publication

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“…Interest rate negatively associates with financial development and this finding similar with Aftab et al (2016) but adverse with Krause et al (2006). When rate of interest goes high, private companies have to pay higher interest on their credit, as a results companies become reluctant to take loan, which reduce the flow of capital into the organization, thereby financial development of the country's goes down.…”

Section: Generalized Linear Model (Glm)supporting

confidence: 50%

“…Moreover, ris-ing level of interest rate increase cost of borrower, in consequence, private sectors remain reluctant to borrow funds, which have adverse impact on financial development. Aftab, Jebran, Ullah, and Awais (2016) observed negative link between interest rate and financial development. Thus, minus sign consider for interest rate in this study.…”

Section: Independent Variablesmentioning

confidence: 95%

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Does Personal Finance Impact on Financial Development? Evidence from Bangladesh

Miyan¹,

Miah²

2022

j.financ.econ.res

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The purpose of the study is investigated the efficiency of personal finance in terms of financial gain and advancement. Despite the fact that there is an abundance of research on personal finance literacy in the literature, there is a scarcity of research on the effect of personal finance on financial growth in the literature, particularly in Bangladesh. With the passage of time, the amount of national income and savings in the country has been steadily increasing throughout time. Despite the fact that its frequency has fluctuated, there have been no official studies conducted on the usefulness of personal finance in terms of financial development. Time-series data over the period 2001-2019 of Bangladesh has been employed in this article. By using Generalized Linear Model (GLM), this study observes the effects of personal finance on financial development. This study observes positive effect of personal finance on financial development. Also, this study also finds that market capitalization and trade openness positively as well as inflation and interest rate negatively effects on development of Bangladesh's financial system. Likewise, uni-direction causal relationship observes between the issues by employing Toda-Yamamoto Granger Causality. Similarly, Co-integration results suggest that long-run relationship among the variables. The observations of this paper suggest that policy makers and government of the country should make effort to ensure secure individual savings, which will increase personal finance in market, which in turn will increase financial development as well.

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Section: Generalized Linear Model (Glm)supporting

confidence: 50%

Section: Independent Variablesmentioning

confidence: 95%

Does Personal Finance Impact on Financial Development? Evidence from Bangladesh

Miyan¹,

Miah²

2022

j.financ.econ.res

View full text Add to dashboard Cite

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“…Conversely, Aftab, Jebran, Ullah, and Awais (2016) argued that the exchange rate does not impact credit to the private sector. Aftab et al (2016) noted that the exchange rate has a positive and significant contribution to investment. Aftab et al (2016) argued that an increase in the exchange rate increases investors' wealth because of increased income.…”

Section: Exchange Rate and Commercial Banks' Credit To The Sme Sectormentioning

confidence: 99%

“…Aftab et al (2016) noted that the exchange rate has a positive and significant contribution to investment. Aftab et al (2016) argued that an increase in the exchange rate increases investors' wealth because of increased income. Aftab et al (2016) further argued that an increase in the exchange reduces the funds available for the private sector.…”

Section: Exchange Rate and Commercial Banks' Credit To The Sme Sectormentioning

confidence: 99%

“…Aftab et al (2016) argued that an increase in the exchange rate increases investors' wealth because of increased income. Aftab et al (2016) further argued that an increase in the exchange reduces the funds available for the private sector. Therefore, private investment will reduce due to fewer funds available in the private sector.…”

Section: Exchange Rate and Commercial Banks' Credit To The Sme Sectormentioning

confidence: 99%

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Macroeconomic Factors Affecting Commercial Banks’ Credit to Small And Medium-Sized Enterprises in Kenya.

Kariuki,

Nasieku

2023

ijsshr

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Bank credit to the SMEs in Kenya remains relatively low by international standards, and by holding other factors constant, there is potential for credit growth. However, several factors come into play with regard to the proportion of credit to the SME sector. From this background, the current study will seek to examine the determinants of bank credit to the SME sector in Kenya. The financial intermediation theory, financial liberalization theory and credit risk theory provided the theoretical justification of the study. This study adopted a causal research design to focus on establishing the causal relationships between the dependent and independent variables. Quantitative secondary data was adopted in this study and collected using a data collection instrument. Monthly time series data for the period 2008 to 2021 retrieved from the Central Bank of Kenya reports, Kenya National Bureau of Statistics, and World Bank reports was used. The study used both descriptive and inferential methods to analyze data. The findings from this study support the intuition from empirical evidence and theoretical framework that credit in commercial banks is determined by macroeconomic factors. This means that commercial credit in Kenya are determined by GDP, Inflation, interest rates & Exchange rates when all working simultaneously.

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Presentation of Results

Muhamad

2023

Reducing Natural Resource Dependency for Economic Growth in Resource Rich Countries

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Impact of Interest Rate on Private Sector Credit; Evidence

Cited by 8 publications

References 1 publication

Does Personal Finance Impact on Financial Development? Evidence from Bangladesh

Does Personal Finance Impact on Financial Development? Evidence from Bangladesh

Macroeconomic Factors Affecting Commercial Banks’ Credit to Small And Medium-Sized Enterprises in Kenya.

Presentation of Results

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