The Impact of Interest and Inflation Rates on Deposits Behavior of Banks: The Case of Egypt
Mohamed Youssef, A., Lashin Mohamed Mansi, A., Mohamed Hassan Shahwan, T. (2022). The Impact of Interest and Inflation Rates on Deposits Behavior of Banks: The Case of Egypt. EKB Journal Management System, 2(1), 55-80. doi: 10.21608/ajccr.2022.223049
Ahmed Mohamed Mohamed Youssef; Abdelaaty Lashin Mohamed Mansi; Tamer Mohamed Hassan Shahwan. "The Impact of Interest and Inflation Rates on Deposits Behavior of Banks: The Case of Egypt". EKB Journal Management System, 2, 1, 2022, 55-80. doi: 10.21608/ajccr.2022.223049
Mohamed Youssef, A., Lashin Mohamed Mansi, A., Mohamed Hassan Shahwan, T. (2022). 'The Impact of Interest and Inflation Rates on Deposits Behavior of Banks: The Case of Egypt', EKB Journal Management System, 2(1), pp. 55-80. doi: 10.21608/ajccr.2022.223049
Mohamed Youssef, A., Lashin Mohamed Mansi, A., Mohamed Hassan Shahwan, T. The Impact of Interest and Inflation Rates on Deposits Behavior of Banks: The Case of Egypt. EKB Journal Management System, 2022; 2(1): 55-80. doi: 10.21608/ajccr.2022.223049

The Impact of Interest and Inflation Rates on Deposits Behavior of Banks: The Case of Egypt

The Academic Journal of Contemporary Commercial Research
Article 4, Volume 2, Issue 1, March 2022, Page 55-80  XML PDF (724.04 K)
Document Type: Original Article
DOI: 10.21608/ajccr.2022.223049
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Authors
Ahmed Mohamed Mohamed Youssef email 1; Abdelaaty Lashin Mohamed Mansi1; Tamer Mohamed Hassan Shahwan2
1Faculty of Commerce, Suez Canal University, Ismailia, Egypt.
2Zagazig University, Zagazig, Egypt.
Abstract
This paper examines the impact of interest and inflation rates on deposits' behavior of banks and investigates the factors influencing the impact of interest and inflation rates movements on deposits' behaviors of banks in Egypt within the period 2000-2018. Using secondary data for the quarterly time series collected from the Statistical Bulletins published by the Egyptian Central Bank. The ARDL methodology and ARCH & GARCH models are used. The results indicate that the volatility of interest rate is not associated with the deposits' behavior of banks in the local and foreign currencies. Furthermore, the results reveal that inflation rate volatility is positively associated with the deposits' behavior in the local and foreign currencies of banks. It is recommended to examine the deposits' behavior according to different types of deposits.
Keywords
Egypt; Nominal interest rate; Inflation rate (CPI); deposits' behavior of banking
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