Deposit Formation in Georgia

Author/Editor: Robert Tchaidze ; Salome Tvalodze
Publication Date: April 01, 2011
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper analyzes behavior of the real deposits in Georgia in1996-2009 by modeling demand for the real broad money balances and the cash-deposit ratio. The results suggest that the main factors that affected deposits over those years were income, development of the financial sector, and changes in the tax burden, while changes in the interest rate and inflation played only a minor role. The results also demonstrate importance of the geopolitical events as they affect confidence in the banking sector.
Series: Working Paper No. 11/78
Subject(s): Banking sector | Commercial banks | Currency depositories | Economic models

Author's Keyword(s): money demand | currency-deposit ratio | depositary base
Publication Date: April 01, 2011
ISBN/ISSN: 9781455226108/1018-5941 Format: Paper
Stock No: WPIEA2011078 Pages: 20
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