Factors Affecting the Quantity of Credit at the Government Saving Bank

Abstract

The purpose of this research was to investigate the relationships between the quantity of the money supply allocated for credit at the Government Savings Bank (GSB) and the quantity of deposits, the quantity of bad debts and doubtful debts, the quantity of investment monies in securities, and the minimum overdraft rate (MOR). The data were collected from the period between 1996 and 2010 and analyzed using the ordinary least squares (OLS) method.

The Findings showed that the quantity of deposits at the GSB was found to be directly correlated with the quantity of money supply allocated for credit at the GSB at the statistically significant level of reliability of 99 percent. The quantity of bad debts and doubtful debts were determined to be directly correlated with the quantity of money supply allocated for credit but without statistical significance. However, the MOR and the quantity of investment monies in securities were found to be inversely correlated with the quantity of money supply allocated for credit at the statistically significant level of reliability of 95 and 99 percent, respectively.