Changes in Financial Performance of Traditional Intermediatries for Financial Innovation
Rajnish Kler, Motilal Nehru College (Evening), University of Delhi, New Delhi.
Manuscript received on 04 August 2019 | Revised Manuscript received on 08 August 2019 | Manuscript published on 30 August 2019 | PP: 3723-3728 | Volume-8 Issue-10, August 2019 | Retrieval Number: J10520881019/2019©BEIESP | DOI: 10.35940/ijitee.J1052.0881019
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The purpose of this thesis is to examine the impact of digital bank deposit, asset and loan growth on selected traditional bank performance measures. In order to estimate whether a causal relationship between digital bank measures and traditional bank performance exists, Granger causality method is selected as the main empirical model. In addition, to determine the direction and strength of said relationship, OLS regressions are performed. Research results lead to the conclusion that digital bank deposit and loan growth have a causal relationship to traditional bank performance ratios. Deposit growth has a negative impact on traditional bank performance ratios and loan growth shows both positive and negative impact on different ratios. This research demonstrates some of the challenges that traditional banks are facing in the age of innovation.
Keywords: Financial Innovation, Digital Banks, Traditional Financial Intermediaries, Granger Causality
Scope of the Article: High Performance Computing