Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Desktop Study of the Effects of Depositors Funds on the Performance and Growth of Financial Institutions

Author(s): Wadesango Newman, Faith A Nkhambala, Sitsha Lovemore, Malatji Stephen,

The purpose of the study was to establish the effects of depositors’ funds on performance and growth of the financial institutions. A background of continuously rising trend in the bank’s deposits and profits has been a major cause for concern as questions have been raised as to whether or not the two variables have a relationship. This objective was achieved by consulting and reviewing literature from numerous authorities to access in-depth knowledge of the research subject. The research used only secondary sources for collecting data. The findings indicated that there is a positive significant relationship between deposits and performance of the bank. The findings also showed that there are variables that affect the deposits and in turn profitability, it showed that a positive change in deposits interest rate affects the level of deposits received and later on the profitability of the bank. Based on this, the study recommends the bank to develop strategies towards marketing and mobilisation of more deposits as they are indispensable tools towards the profitability of the bank.

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