- Title
- Financial deepening and economic performance in South African commercial banks
- Creator
- Mpongoshe, Nomthandazo
- Subject
- Economic development
- Subject
- Banks and banking -- South Africa
- Subject
- Performance -- Measurement
- Subject
- Liquidity (Economics)
- Date Issued
- 2023-12
- Date
- 2023-12
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/65829
- Identifier
- vital:74271
- Description
- Financial deepening and economic growth have received much attention in the literature. However, there remains a significant gap in understanding the relationship between financial deepening, and bank performance especially within the context of South African commercial banks. This research aims to investigate the empirical relationship between financial deepening and the performance of all South African commercial banks from 1987 to 2019. The research adopts a descriptive research design and utilizes secondary data along with time series analysis techniques. The research empirically investigates the relationship between financial deepening and bank performance, using financial deepening indicators such as Market Capitalisation (MC), Credit to the private sector (CR), Money Stock (MS), and Bank liquidity (BL). Control variables such as Gross Domestic Product (GDP), Inflation rate (IF), and Lending interest rate (LR) are also considered. The autoregressive distributed lag bounds testing (ARDL) method is employed to test the relationship between financial deepening and bank performance. The autoregressive distributed lag bounds testing (ARDL) method is employed to test the relationship between financial deepening and bank performance of South African commercial banks. The findings indicate that financial deepening has both short-term and long-term impacts on bank performance. Each component of the financial deepening indicators demonstrates a strong and statistically significant relationship with bank performance. This empirical evidence suggests that financial deepening has made a positive contribution to the profitability of South African commercial banks. Furthermore, the analysis reveals a long-run equilibrium relationship between financial deepening and the economic performance of the South African banking sector. This research addresses the gap between theoretical beliefs and empirical evidence by establishing a robust and positive contribution of financial deepening to the profitability of South African commercial banks. The findings highlight the significance of financial deepening in enhancing bank performance in South Africa.
- Description
- Thesis (MCom) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2023
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (xi, 146 pages)
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
- Rights
- All Rights Reserved
- Rights
- Open Access
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NMU School for Economics, Development and Tourism
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Mpongoshe, N.pdf | 1 MB | Adobe Acrobat PDF | View Details Download |