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Refine your search Apply to external sourcesImpact of remittance on deposit of commercial banks' and economic growth of Nepal / Ritu Malekoo
Title : Impact of remittance on deposit of commercial banks' and economic growth of Nepal Material Type: printed text Authors: Ritu Malekoo, Author Publication Date: 2015 Pagination: 76p. Size: GRP/Thesis Accompanying material: 5/B General note: Including bibilography Languages : English Descriptors: Economic history
Emigrant remittances
Emigration and immigration
NepalKeywords: 'remittance economic history bank deposit banks banking' Class number: 332.042 Abstract: Remittances are becoming very important source of foreign financial flows, especially in developing countries, both in size and growth rate, exceeding the inflows of most forms of financial flows. The true size of remittances as well as unrecorded flows through formal and informal channels is believed to be significantly large (Gammeltoft, 2002). Recorded remittances are more than twice as large as official aid and nearly two-thirds of foreign direct investment (FDI) flows to developing countries. The most obvious and visible contribution of migrants to economies of origin is the money they send or bring home to family and friends (Massey et al., 1998). Workers’ remittances are the cash inflows coming from foreign countries as a result of foreign workers remitting or transferring money to their home (Dilshad, 2013). Remittances received by developing countries rose from US$ 55.2 billion in 1995 to US$226.7 billion in 2006 and US$325.5 billion in 2010 while remittance flows to developing countries are expected to reach US$540 billion by 2016 (Ratha et al. 2011).
The analysis of the impact of remittance on banks’ deposit and economic growth is extremely important, since an inflow of remittances has affected economic growth by reducing current account deficit, improving the balance of payment position and reducing dependence on external borrowing. Similarly, remittances are also believed to play an important role in the widening and deepening of the financial sector. Empirical studies showed in numerous endogenous growth models, that the surge of the remittances involves a liquidity increasing of the banks. Kunt et al. (2010) reveled that remittances are strongly associated with greater banking breadth (measured by number of branches and deposit accounts per capita) and depth (measured by the volume of deposits and credit to GDP).
This study is based on secondary data analysis. The study has used GDP per capita and total deposit as dependent variables and total remittances inflow, consumption, gross capital formation and import as independent variables. The data are collected from various secondary sources for the period of 1995- 2014. Likewise, regression and correlation analysis are used to examine the effects of remittances on banks’ deposit and economic growth of Nepal.
The study reveals that total remittances inflow has positive and significant effect on gross domestic product and total deposit of commercial banks’. The study also finds that consumption and gross capital formations have positive and significant impact on gross domestic product of the country. Similarly, the study also finds that gross capital formation have positive effect on total deposit of commercial banks’. Negative effect of import on gross domestic product has been observed. Similarly, consumption and import have a negative and significant effect on total deposit of banks’.
The recommendation by this study is that to bring recipients households into productive investment, control on imported goods and focus on export is only first step in using remittances more effectively. The study remains enough ground for future researcher in the same topic. The future studies can be carried out by conducting research using other different macroeconomic variables.Impact of remittance on deposit of commercial banks' and economic growth of Nepal [printed text] / Ritu Malekoo, Author . - 2015 . - 76p. ; GRP/Thesis + 5/B.
Including bibilography
Languages : English
Descriptors: Economic history
Emigrant remittances
Emigration and immigration
NepalKeywords: 'remittance economic history bank deposit banks banking' Class number: 332.042 Abstract: Remittances are becoming very important source of foreign financial flows, especially in developing countries, both in size and growth rate, exceeding the inflows of most forms of financial flows. The true size of remittances as well as unrecorded flows through formal and informal channels is believed to be significantly large (Gammeltoft, 2002). Recorded remittances are more than twice as large as official aid and nearly two-thirds of foreign direct investment (FDI) flows to developing countries. The most obvious and visible contribution of migrants to economies of origin is the money they send or bring home to family and friends (Massey et al., 1998). Workers’ remittances are the cash inflows coming from foreign countries as a result of foreign workers remitting or transferring money to their home (Dilshad, 2013). Remittances received by developing countries rose from US$ 55.2 billion in 1995 to US$226.7 billion in 2006 and US$325.5 billion in 2010 while remittance flows to developing countries are expected to reach US$540 billion by 2016 (Ratha et al. 2011).
The analysis of the impact of remittance on banks’ deposit and economic growth is extremely important, since an inflow of remittances has affected economic growth by reducing current account deficit, improving the balance of payment position and reducing dependence on external borrowing. Similarly, remittances are also believed to play an important role in the widening and deepening of the financial sector. Empirical studies showed in numerous endogenous growth models, that the surge of the remittances involves a liquidity increasing of the banks. Kunt et al. (2010) reveled that remittances are strongly associated with greater banking breadth (measured by number of branches and deposit accounts per capita) and depth (measured by the volume of deposits and credit to GDP).
This study is based on secondary data analysis. The study has used GDP per capita and total deposit as dependent variables and total remittances inflow, consumption, gross capital formation and import as independent variables. The data are collected from various secondary sources for the period of 1995- 2014. Likewise, regression and correlation analysis are used to examine the effects of remittances on banks’ deposit and economic growth of Nepal.
The study reveals that total remittances inflow has positive and significant effect on gross domestic product and total deposit of commercial banks’. The study also finds that consumption and gross capital formations have positive and significant impact on gross domestic product of the country. Similarly, the study also finds that gross capital formation have positive effect on total deposit of commercial banks’. Negative effect of import on gross domestic product has been observed. Similarly, consumption and import have a negative and significant effect on total deposit of banks’.
The recommendation by this study is that to bring recipients households into productive investment, control on imported goods and focus on export is only first step in using remittances more effectively. The study remains enough ground for future researcher in the same topic. The future studies can be carried out by conducting research using other different macroeconomic variables.Hold
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Barcode Call number Media type Location Section Status 196/D 332.042 MAL Thesis/Dissertation Uniglobe Library Social Sciences Available
Title : Impact of workers’ remittance on financial development of Nepal Material Type: printed text Authors: Birendra Bahadur Bista, Author Publication Date: 2017 Pagination: 100p. Size: GRP/Thesis Accompanying material: 10/B Languages : English Descriptors: Emigrant remittances Class number: 332.0424 Abstract: Remittance inflow has been an important part of sources of funds in developing countries like Nepal and with the large labour migration the dependency on the remittance inflow has become broader than ever. Remittance remain a key source of external resource flows for developing countries, far exceeding official development assistance and more stable than private debt and portfolio equity flows (Ratha et al., 2011). Inflow of remittance, being a prime source of foreign currency and thereby a contribution to the national economy plays a significant role in the context of developing nations. The importance of the relationship between macroeconomic variables and financial development has been well organized and emphasized in the field of research. Thus the studies of this nature are very important for policy makers in in deciding which sector to put emphasis on. Once it is determined that is casualty from macroeconomic variables to financial development. There should be urgency in making relevant policy recommendations, to facilitate and foster sound growth of the Nepalese financial sector.
This study investigates the relationship between macroeconomic variables and financial development. More specifically, this study has been conducted to test the long run cointegrating relationship between macroeconomic variables and financial development along with analysis of direction of casualty between macroeconomic variables and financial development in both long term and short run in case of Nepal for the period of 1990 to 2015. Remittance inflow to GDP, foreign direct investment to GDP, inflation rate, per capita income and exchange rate are used as macroeconomic variables. Financial development is measured in terms of money supply and total bank deposit.
For integration and cointegration technique, this study employed Augmented Dickey Fuller (ADF) unit root and ARDL approach to cointegration by Pesaran et al. (1997) in order to test the of stationarity and the long run relationship, respectively. The ARDL approach has been, further, used to analyze the long run dynamics of the macroeconomic variables and financial development relationship. The error correction model has been developed from ARDL approach to analyze the short run relationship between macroeconomic variables and financial development. The same model has also been used to analyze the direction of causality in short run. The regression diagnostic tests have also been performed to check the validity of proposed model. The Jarque – Bera (JB) test, Ramsey test, and Lagrange Multiplier (LM) tests are used to test the normality, functional form and serial correlation respectively.
The ARDL bound testing approach to cointegration by Pesaran et al (1997) estimates show that there is fairly a long run cointegrating relationship between financial development and macroeconomic variables. Therefore, it is clear indication that long run causality is one way from remittance inflow to financial development. The long run estimates of the estimated (p, q, r, s, m, n) models indicate that remittance, exchange rate and per capita income are the major indicator of the financial development and has statistically significant impact on economic growth in long run. Similarly, remittance inflow, inflation rate, per capita income and exchange rate found to be positively correlated with financial development. The diagnostic statistics (normality, autocorrelation, and functional form misspecification) show that the used ARDL model seems to be data congruent and free from specification error. Thus, the strong link between macroeconomic variables and financial development does not appear to be spurious one. The estimates of short run ARDL error correction model depicted that error correction term (ECM) lagged one period is negative and highly significant in all estimated models indicating macroeconomic and financial development variables are cointegrated. Reasonably, large coefficients of ECM term indicate that speed of adjustment to the equilibrium after a shock of previous period is very high. The short run estimates of the model shows that remittance inflow, inflation rate, per capita income and exchange rate have significant positive impact on financial development. The short run coefficient for foreign direct investment shows negative and significant relationship with economic growth. This finding suggests that even if high level of remittance is positively related to total deposit in long term and short term but it will have no impact on money supply in long run.
Impact of workers’ remittance on financial development of Nepal [printed text] / Birendra Bahadur Bista, Author . - 2017 . - 100p. ; GRP/Thesis + 10/B.
Languages : English
Descriptors: Emigrant remittances Class number: 332.0424 Abstract: Remittance inflow has been an important part of sources of funds in developing countries like Nepal and with the large labour migration the dependency on the remittance inflow has become broader than ever. Remittance remain a key source of external resource flows for developing countries, far exceeding official development assistance and more stable than private debt and portfolio equity flows (Ratha et al., 2011). Inflow of remittance, being a prime source of foreign currency and thereby a contribution to the national economy plays a significant role in the context of developing nations. The importance of the relationship between macroeconomic variables and financial development has been well organized and emphasized in the field of research. Thus the studies of this nature are very important for policy makers in in deciding which sector to put emphasis on. Once it is determined that is casualty from macroeconomic variables to financial development. There should be urgency in making relevant policy recommendations, to facilitate and foster sound growth of the Nepalese financial sector.
This study investigates the relationship between macroeconomic variables and financial development. More specifically, this study has been conducted to test the long run cointegrating relationship between macroeconomic variables and financial development along with analysis of direction of casualty between macroeconomic variables and financial development in both long term and short run in case of Nepal for the period of 1990 to 2015. Remittance inflow to GDP, foreign direct investment to GDP, inflation rate, per capita income and exchange rate are used as macroeconomic variables. Financial development is measured in terms of money supply and total bank deposit.
For integration and cointegration technique, this study employed Augmented Dickey Fuller (ADF) unit root and ARDL approach to cointegration by Pesaran et al. (1997) in order to test the of stationarity and the long run relationship, respectively. The ARDL approach has been, further, used to analyze the long run dynamics of the macroeconomic variables and financial development relationship. The error correction model has been developed from ARDL approach to analyze the short run relationship between macroeconomic variables and financial development. The same model has also been used to analyze the direction of causality in short run. The regression diagnostic tests have also been performed to check the validity of proposed model. The Jarque – Bera (JB) test, Ramsey test, and Lagrange Multiplier (LM) tests are used to test the normality, functional form and serial correlation respectively.
The ARDL bound testing approach to cointegration by Pesaran et al (1997) estimates show that there is fairly a long run cointegrating relationship between financial development and macroeconomic variables. Therefore, it is clear indication that long run causality is one way from remittance inflow to financial development. The long run estimates of the estimated (p, q, r, s, m, n) models indicate that remittance, exchange rate and per capita income are the major indicator of the financial development and has statistically significant impact on economic growth in long run. Similarly, remittance inflow, inflation rate, per capita income and exchange rate found to be positively correlated with financial development. The diagnostic statistics (normality, autocorrelation, and functional form misspecification) show that the used ARDL model seems to be data congruent and free from specification error. Thus, the strong link between macroeconomic variables and financial development does not appear to be spurious one. The estimates of short run ARDL error correction model depicted that error correction term (ECM) lagged one period is negative and highly significant in all estimated models indicating macroeconomic and financial development variables are cointegrated. Reasonably, large coefficients of ECM term indicate that speed of adjustment to the equilibrium after a shock of previous period is very high. The short run estimates of the model shows that remittance inflow, inflation rate, per capita income and exchange rate have significant positive impact on financial development. The short run coefficient for foreign direct investment shows negative and significant relationship with economic growth. This finding suggests that even if high level of remittance is positively related to total deposit in long term and short term but it will have no impact on money supply in long run.
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Barcode Call number Media type Location Section Status 367/D 332.0424 BIS Thesis/Dissertation Uniglobe Library Social Sciences Available
Title : Relationship between remittance and credit disbursement of the banking sector in Nepal Material Type: printed text Authors: Srijana Neupane, Author Publication Date: 2017 Pagination: 54p. Size: GRP/Thesis Accompanying material: 8/B Languages : English Descriptors: Emigrant remittances Class number: 332.450 Abstract: Remittances are the major sources of foreign exchange earnings and important implications for the remittances-recipient countries because of their increasing volume. The inflow of remittances being a prime source of foreign currency and thereby a contribution to the national economy plays a significant role in the context of the developing nations.
The link between remittances, financial development, economic growth and poverty alleviation is an important issue for the remittances dependence countries. Development of the banking sector reducing the transaction costs that might motivate the investor to invest in different investment projects with high rate of return and increases the economic growth of the country. Remittances affect banking services, processing fees and transactions costs. The potential to collect these fees might induce banks to expand their outreach, locate close to remittance recipients and increase their demands for banking services, since banks offer households a safe place to store the temporary excess cash. Entrepreneurs in developing countries confront much less efficient credit markets and available evidence indicates that access to credit is among their biggest concerns (Paulson et al., 2000). Remittances are becoming very important source of foreign financial flows, especially in developing countries, both in size and growth rate, exceeding the inflows of most forms of financial flows.
The major objective of the study isto examine the relationship between remittance and credit disbursement of banking sector in Nepal. The study is based on the secondary data of 20 Nepalese commercial banks for the period of 2008/09 to 2014/15 with a total of 140 observations. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. The pooled cross sectional data analysis has been undertaken in the study. The research design adopted in this study is descriptive statistics, correlation analysis and regression analysis as it deals with the relationship between remittance and credit disbursement of banking sector in Nepal.
The result shows that the average total loan is highest for ADBL (Rs.49 billion) and lowest for NMB (Rs.0.77 billion). The average non-performing loan is highest for NBB (9.51 percent) and lowest for EBL (0.53 percent). The average total deposit is highest for RBB (Rs. 91.43 billion) and lowest for LBL (Rs. 10.99 billion). The average total size is highest for RBB (Rs.112.46 billion) and lowest for LBL (Rs. 12.62 billion). The average ROA is highest for ADBL (3.06 percent) and lowest for MBL (0.61 percent). The average interest rate is highest for ADBL (11.95 percent) and lowest for SCBL (6.89 percent). The remittance is highest in year 2015 (Rs. 617 billion) and lowest in year 2009 (Rs.209 billion). The GDP growth rate is highest in year in 2014 (5.4 percent) and lowest in 2015 (3.9 percent). The inflation rate is highest in year 2009 (11.1 percent) and lowest in year 2015 (7.2 percent).
The descriptive analysis shows that the average total loan and non-performing loan is Rs.24.94 billion and 2.53 percent respectively. Similarly, the descriptive result shows that the average remittance, total deposit, total size, return on assets, interest rate, GDP and inflation is Rs.378.54 billion, Rs.35.14 billion, Rs.44.39 billion, 1.81 percent, 9.76 percent, 4.26 percent and 9.26 percent respectively.
The study shows that there is positive relationship of remittance, total deposit, total size, and return on assets withtotal loan. Similarly, Interest rate, GDP and Inflation have negative relationship with total loan. Likewise, the study shows thatthere is negative relationship of remittance and GDP withNPL. Similarly, total deposit and total size have positive relationship with NPL. However, the interest rate and ROA have positive relationship with NPL. Likewise, there is positive relationship between inflation and NPL.
The regression analysis shows that remittance has significant positive impact on total loan. Similarly, total deposit, total size, ROA have significant positive impact on total loan. Likewise, interest rate and inflation have negative impact on total loan. However, remittance has significant negative impact on NPL. Similarly, interest rate has significant positive impact on NPL. Likewise, total size, ROA and GDPhave negative impact on NPL. Inflation has positive impact on NPL.
Relationship between remittance and credit disbursement of the banking sector in Nepal [printed text] / Srijana Neupane, Author . - 2017 . - 54p. ; GRP/Thesis + 8/B.
Languages : English
Descriptors: Emigrant remittances Class number: 332.450 Abstract: Remittances are the major sources of foreign exchange earnings and important implications for the remittances-recipient countries because of their increasing volume. The inflow of remittances being a prime source of foreign currency and thereby a contribution to the national economy plays a significant role in the context of the developing nations.
The link between remittances, financial development, economic growth and poverty alleviation is an important issue for the remittances dependence countries. Development of the banking sector reducing the transaction costs that might motivate the investor to invest in different investment projects with high rate of return and increases the economic growth of the country. Remittances affect banking services, processing fees and transactions costs. The potential to collect these fees might induce banks to expand their outreach, locate close to remittance recipients and increase their demands for banking services, since banks offer households a safe place to store the temporary excess cash. Entrepreneurs in developing countries confront much less efficient credit markets and available evidence indicates that access to credit is among their biggest concerns (Paulson et al., 2000). Remittances are becoming very important source of foreign financial flows, especially in developing countries, both in size and growth rate, exceeding the inflows of most forms of financial flows.
The major objective of the study isto examine the relationship between remittance and credit disbursement of banking sector in Nepal. The study is based on the secondary data of 20 Nepalese commercial banks for the period of 2008/09 to 2014/15 with a total of 140 observations. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. The pooled cross sectional data analysis has been undertaken in the study. The research design adopted in this study is descriptive statistics, correlation analysis and regression analysis as it deals with the relationship between remittance and credit disbursement of banking sector in Nepal.
The result shows that the average total loan is highest for ADBL (Rs.49 billion) and lowest for NMB (Rs.0.77 billion). The average non-performing loan is highest for NBB (9.51 percent) and lowest for EBL (0.53 percent). The average total deposit is highest for RBB (Rs. 91.43 billion) and lowest for LBL (Rs. 10.99 billion). The average total size is highest for RBB (Rs.112.46 billion) and lowest for LBL (Rs. 12.62 billion). The average ROA is highest for ADBL (3.06 percent) and lowest for MBL (0.61 percent). The average interest rate is highest for ADBL (11.95 percent) and lowest for SCBL (6.89 percent). The remittance is highest in year 2015 (Rs. 617 billion) and lowest in year 2009 (Rs.209 billion). The GDP growth rate is highest in year in 2014 (5.4 percent) and lowest in 2015 (3.9 percent). The inflation rate is highest in year 2009 (11.1 percent) and lowest in year 2015 (7.2 percent).
The descriptive analysis shows that the average total loan and non-performing loan is Rs.24.94 billion and 2.53 percent respectively. Similarly, the descriptive result shows that the average remittance, total deposit, total size, return on assets, interest rate, GDP and inflation is Rs.378.54 billion, Rs.35.14 billion, Rs.44.39 billion, 1.81 percent, 9.76 percent, 4.26 percent and 9.26 percent respectively.
The study shows that there is positive relationship of remittance, total deposit, total size, and return on assets withtotal loan. Similarly, Interest rate, GDP and Inflation have negative relationship with total loan. Likewise, the study shows thatthere is negative relationship of remittance and GDP withNPL. Similarly, total deposit and total size have positive relationship with NPL. However, the interest rate and ROA have positive relationship with NPL. Likewise, there is positive relationship between inflation and NPL.
The regression analysis shows that remittance has significant positive impact on total loan. Similarly, total deposit, total size, ROA have significant positive impact on total loan. Likewise, interest rate and inflation have negative impact on total loan. However, remittance has significant negative impact on NPL. Similarly, interest rate has significant positive impact on NPL. Likewise, total size, ROA and GDPhave negative impact on NPL. Inflation has positive impact on NPL.
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Barcode Call number Media type Location Section Status 276/D 332.450 NEU Thesis/Dissertation Uniglobe Library Social Sciences Available
