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Deposit Formation in Georgia

Author

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  • Mr. Robert Tchaidze
  • Mr. Salome Tvalodze

Abstract

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.

Suggested Citation

  • Mr. Robert Tchaidze & Mr. Salome Tvalodze, 2011. "Deposit Formation in Georgia," IMF Working Papers 2011/078, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2011/078
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    References listed on IDEAS

    as
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    Cited by:

    1. Asian Development Bank Institute, 2017. "Financial Soundness Indicators for Financial Sector Stability in Georgia," Working Papers id:11864, eSocialSciences.
    2. Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB), 2015. "Financial Soundness Indicators for Financial Sector Stability in Georgia," ADB Reports RPT157600-2, Asian Development Bank (ADB).

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    Keywords

    WP; broad money;

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