International Journal of Economics, Finance and Management Sciences
Volume 3, Issue 3, June 2015, Pages: 294-302
Received: May 18, 2015;
Accepted: May 27, 2015;
Published: May 28, 2015
Views 5476 Downloads 157
Kenneth Alpha Egesa, Department of Statistics, Bank of Uganda, Kampala, Uganda
Bruno Max Ocaya, Department of Statistics and Actuarial Sciences, College of Business and Management Sciences, Makerere University, Kampala, Uganda
Leonard Kiboijana Atuhaire, Department of Statistics and Actuarial Sciences, College of Business and Management Sciences, Makerere University, Kampala, Uganda
Yeko Mwanga, Department of Statistics and Actuarial Sciences, College of Business and Management Sciences, Makerere University, Kampala, Uganda
Tom Nyanzi Makumbi, Department of Statistics and Actuarial Sciences, College of Business and Management Sciences, Makerere University, Kampala, Uganda
Xavier Mugisha, Department of Statistics and Actuarial Sciences, College of Business and Management Sciences, Makerere University, Kampala, Uganda
This study analyzed the determinants of investments in securities by banks using the generalized method of moments regression technique. The results showed significant effects of continuous partial adjustments in the government securities held, capitalization, loan performance and bank size. To ensure continued demand for Government securities, regulatory measures aimed at safeguarding capital adequacy and promoting competition in the banking sector are recommended.
Kenneth Alpha Egesa,
Bruno Max Ocaya,
Leonard Kiboijana Atuhaire,
Tom Nyanzi Makumbi,
Determinants of Investment in Government Securities by Banks in Uganda, International Journal of Economics, Finance and Management Sciences.
Vol. 3, No. 3,
2015, pp. 294-302.
A. N. Berger and G. F. Udell, "Did risk-based capital allocate bank credit and cause a credit crunch in the United States?," Journal of Money, Credit and Banking, pp. 585-628, 1994.
W. R. Keeton, "Causes of the recent increase in bank security holdings," Economic Review of the Federal Reserve Bank of Kansas City, p. 45, 1994.
A. Rodrigues, "Government securities investments of commercial banks," Quarterly Review of the Federal Reserve Bank of New York, p. 39, 1993.
L. C. Andersen and A. E. Burger, "Asset management and commercial bank portfolio behavior theory and practice," The Journal of Finance, pp. 207-222, 1969.
B. S. Bernanke and C. S. Lown, "The credit crunch," Brookings Papers on Economic Activity, pp. 205-247, 1991.
J. G. Haubrich and P. Wachtel, "Capital requirements and shifts in commercial bank portfolios," New York Salomon Center, Leonard N. Stern School of Business, 1993.
R. E. Shrieves and D. Dahl, "Regulations, recession and bank lending behaviour: The 1990 credit crunch," Journal of Financial Services Research, pp. 5-30, 1995.
R. F. Syron, "Are we experiencing a credit crunch?," New England Economic Review, pp. 3-10, 1991.
D. S. Bizer, "Regulatory discretion and credit crunch," US Securities and Exchange Commision, Working Paper, 1993.
D. Hancock and J. A. Wilcox, "The effect on bank assets of business conditions and capital shortfalls," In Federal Reserve Bank of Chicago Proceedings, p. No. 373, 1992.
T. H. Hannan, "Bank commercial loan markets and the role of market structure: Evidence from surveys of commercial lending," Journal of Banking and Finance, pp. 133-149, 1991.
P. E. Strahan and J. P. Weston, "Small business lending and the changing structure of the banking industry," Journal of Banking and Finance, pp. 821-845, 1998.
J. Peek and E. Rosengren, "Bank regulation and the credit crunch," Journal of Banking and Finance, pp. 679-692, 1995.
A. M. Santomero, "Modelling the banking firm: A survey," Journal of money, credit and banking, pp. 576-602, 1984.
M. S. Goldfield and J. E. Kane, "The determinants of member-bank borrowing: An econometric study," The Journal of Finance, p. Vol. 21, 1966.
D. H. Dutkowsky and S. K. McCoskey, "Near integration, bank reluctance and discount window borrowing," Journal of Banking and Finance, pp. 1013-1036, 2001.
T. W. Anderson and C. Hsiao, "Estimation of dynamic models with error components," Journal of the American Statistical Association, pp. 598-606, 1981.
M. Arellano and S. Bond, "Some tests of specification for panel data: Monte Carlo evidence and an an application to employment equations," The Review of Economic Studies, pp. 277-297, 1991.
M. Arellano and O. Bover, "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, pp. 29-51, 1995.
R. Blundell and S. Bond, "Initial conditions moment restrictions in dynamic panel data models," Journal of Econometrics, pp. 115-143, 1998.
StataCorp, Stata longitudinal-data: Panel data reference manual, 2013.
A. Levin, C. F. Lin and C. S. Chu, "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, pp. 1-24, 2002.
M. Saxegaard, "Excess liquidity and effectiveness of monetary policy: Evidence from sub-Saharan Africa," 2006.
Basel Committee, "Basel III: A global regulatory framework for more resilient banks and banking systems," Basel, 2010.
B. Shull, "Commercial banks as multiple-product price-discriminating firms," Banking and Monetary Studies, pp. 351-368, 1963.
R. T. Stillson, "An analysis of information and transaction services in financial institutions," Journal of Money, Credit and Banking, pp. 517-535, 1974.
M. Goodfriend, "Discount window borrowing, monetary policy, and the post-October 6, 1970 Federal Reserve operating procedure," Journal of Monetary Economics, pp. 343-356, 1983.
J. Thornton, "The demand for borrowed reserves: Some evidence from West Germany," The American Economist, pp. 41-43, 1987.
H. Langhor, "Banks borrowing from the Central Bank and reserve position doctrine: Belgium 1960 - 1973," Journal of Monetary Economics, pp. 107-124, 1981.
M. A. Klein and N. B. Murphy, "The pricing of bank deposits: A theoretical and empirical analysis," Journal of Financial and Quantitative Analysis, pp. 747-761, 1971.
O. D. Hart and D. M. Jaffee, "On the application of portfolio theory to depository financial intermediaries," The Review of Economic Studies, pp. 129-147, 1974.
C. W. Sealey, "Deposit rate-setting, risk aversion and the theory of depositroy financial intermediaries," The Journal of Finance, pp. 1139-1154, 1980.
P. Birungi, "Determinants of interest rate spreads in Uganda," University of Pretoria, South Africa, Mimeo, 2005.
T. Beck and H. Hesse, "Bank efficiency, ownership and market structure: Why are interest spreads so high in Uganda," World Bank Policy Research Working Paper, p. 4027, 2006.
A. Mugume, "Market structure and performance in Uganda's banking industry," African Econometrics Society, 2007.