MACROECONOMIC AND BANK SPECIFIC DETERMINANTS ON DEPOSITS AND ITS MOBILIZATION: AN ANALYSIS OF GOVERNMENT BANKS

Abstract

This research investigates the variables that have influenced the growth of deposits in Nepalese commercial banks over a period of ten years. The analysis focuses on variables such as the number of bank branches, the net interest margin (NIM), the size of the bank (measured by total assets), the liquidity levels, the growth of the GDP, and the inflation rates. The data for this analysis comes from three government banks: Rastriya Banijya Bank Limited, Agricultural Development Bank Limited, and Nepal Bank Limited. There is a substantial amount of variation in the mean deposit growth, according to descriptive data. The results of the correlation study show that there is a substantial positive association between the number of bank branches and the increase in deposits while the net interest margin (NIM) demonstrates a negative correlation. The regression study identified branch expansion and efficient NIM management as significant variables that influence deposit growth. These factors account for 47.8 percent of the variation in deposit growth. With regard to improving deposit mobilization efforts in Nepalese commercial banking, the research emphasizes the importance of strategic branch network growth as well as interest rate management.