External Determinants of Commercial Bank Deposits in Libyan Commercial Banks: An Econometric Study for the Period (1984-2019)

Abstract

This study aimed to investigate the impact of certain macroeconomic external factors on the volume of bank deposits in Libyan commercial banks. Using empirical data spanning the period (1984–2019) and applying the ARDL bounds testing approach, the study revealed a cointegration relationship among the variables. In the short run, money supply, real GDP, and government expenditure have positive and significant effects on commercial bank deposits, whereas inflation exhibits a significant negative impact, and the exchange rate shows no significant effect. In the long run, broad money supply and government expenditure have positive and significant impacts, while the exchange rate has a negative and significant effect. The long-term impacts of GDP and inflation were statistically insignificant.