| dc.description.abstract | This study evaluated various ways and means of enhancing the
mobilization and growth of commercial bank deposits in Kenya. In
particular, the determinants of the demand for commercial bank
deposits in Kenya were identified and appraised, using a myriad of
descriptive, analytical and mostly empirical methodology. Time series
data covering 1968-1991 was analyzed using the ordinary least
squares(OLS),Two stage least squares (TSLS) methods of estimation
and Granger tests of causality.commercial banks' branch network
expansion,increased national income levels and stability within the
banking industry were found to be major factors which govern the
demand for commercial bank deposits in Kenya.It was established
that there is a one way or unidirectional relationship between the
volume of bank deposits and bank branch network expansion. Several
policy implications could be drawn from these findings. Firstly a
rural oriented bank branching policy,is an absolute must,in
conformity with stated government strategies and
plans.Secondly, commercial banks should place more emphasis in
future on improved retail banking marketing and innovative methods
more emphasis in
in their sustained efforts to attract bank deposits.Thirdly,the
government has the obligation to ensure that the rate of inflation
is kept under control in order to promote deposit mobilization and
also the growth of the banking sector.There is need for a
comprehensive deposit mobilization strategy in Kenya.Such a
strategy should stress on,reforms meant at ensuring the stability
of the banking system,as one of its prime tenets. | en |
