Deposit Mobilization in Bangladesh : Implications for Rural Financial Institutions and Financial Policies
M.A. Baqui Khalily,
Abstract
Rural deposit mobilization has been given increased emphasis in Bangladesh. This study examines the pattern and trends in Bank deposits with emphasis on rural branches. A simultaneous equations model was estimated to explain rural deposits. One equation was designed to explain district deposits and the second explained bank branches. Permanent income and inflation indirectly influence deposit through their effect on bank branches. The availability of roads and vehicles directly affects deposits through their impact on transaction costs. Inflation and literacy also affect deposit mobilization. Several suggestions are provided for a strategy for rural deposit mobilization