Determinants of Excess Liquidity in Tanzanian Commercial Banks

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dc.contributor.authorAikaeli, Jehovaness
dc.date.accessioned2016-05-11T16:57:55Z
dc.date.available2016-05-11T16:57:55Z
dc.date.issued2006-05
dc.description.abstractAmong the current concerns of policymakers, economists, and analysts in Tanzania is that banks are awash with liquidity despite the high private sector credit demand. On one hand, excess liquidity constrains banks' productivity/efficiency; while on the other hand, it strangles the share of credit allocated to the private sector therefore upsetting economic growth. To determine the causes of excess liquidity, autoregressive distributed lag model is employed in this study. The findings suggest that high cost of funds, credit risks, volatility of deposit holders' cash preference, and the rate of required reserves perpetuated accumulation of excess liquidity in commercial banks in Tanzania. The main empirical findings and conclusions have important policy implications on price stability, risks minimisation, proper supervision and optimal liquidity management by the commercial banks.en_US
dc.identifier.citationAikaeli, J. Determinants of Excess Liquidity in Tanzanian Commercial Banks. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.971750en_US
dc.identifier.doihttp://dx.doi.org/10.2139/ssrn.971750
dc.identifier.issn1556-5068
dc.identifier.urihttp://hdl.handle.net/20.500.11810/1992
dc.language.isoenen_US
dc.publisherSSRN Electronic Journalen_US
dc.subjectExcess liquidityen_US
dc.subjectCommercial Banksen_US
dc.subjectTanzaniaen_US
dc.subjectEfficiencyen_US
dc.subjectAutoregressive distributed lagen_US
dc.titleDeterminants of Excess Liquidity in Tanzanian Commercial Banksen_US
dc.typeJournal Articleen_US
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