Some Causative Factors in Bank Deposit Supply Model in Nigeria: A Co-Integration Analysis

Abstract

In this study, we examined some of the factors that influence the commercial bank deposit supply behaviour in Nigeria. Specifically, we examined the impact of deposit interest rate, foreign exchange rate, Treasury bill rate and Growth rate of Gross Domestic Product on the deposit output behaviour of commercial banks. We identified these variables as suggested by theory in specifying a functional form. Using the technique of co-integration, we were able to conclude that deposit interest rate, foreign exchange rate; Gross Domestic Product influenced the behaviour of commercial banks in their effort at mobilizing deposit for investment in the country. This conclusion shed light on the recommendation made.