Deposit determinants of commercial banks in Malaysia

This paper attempts to investigate the relationship between the deposit level with financial variables and macroeconomic variables in Malaysia. The independent variables are rates of interest on deposits, Base Lending Rate (BLR), Kuala Lumpur Composite Index (KLCI), Consumer price Index (CPI), Money...

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Bibliographic Details
Main Author: Ibrahim, Nur Aqilah
Format: Student Project
Language:en
Published: 2015
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/120305/3/120305.pdf
https://ir.uitm.edu.my/id/eprint/120305/
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Summary:This paper attempts to investigate the relationship between the deposit level with financial variables and macroeconomic variables in Malaysia. The independent variables are rates of interest on deposits, Base Lending Rate (BLR), Kuala Lumpur Composite Index (KLCI), Consumer price Index (CPI), Money Supply (M3), and Gross Domestic Product (GDP). The dependent variable is deposit level of commercial banks in Malaysia. To identify the determinants that affect the deposit level of commercial banks in Malaysia, this study applied the Ordinary Least Square (OLS) method using the monthly data over the period of January 2001 until December 2014. The OLS method results suggest that BLR, KLCI and M3 have a significant relationship with the deposit level whereas interest rate on deposits, CPI and GDP do not have a significant relationship with deposit level of commercial banks in Malaysia.