Financial deepening, credit availability and the efficiency of investment : evidence from selected African countries

Abstract

The objectives of this study are:to examine the role of deposit interest rates in the process of financial deepening,the supply of loan-able funds and the enhancement of the efficiency of investment; to examine the impact of high reserve requirements on the deposit generating efforts of banks and,hence,their effect on the mobilization of savings;to examine the nature of the relationship between high deposit interest rates and inflation; and,finally to examine, through simple policy simulation, the effect of policy alternatives on the level of financial savings.