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The Sources and Components of Money Stock and Deposits and Sectoral Deployment of Scheduled Commercial Banks of Selected Asian Neighbouring Countries and India

Dean Martin C

Department of Commerce and Management studies, Govt College, Ollur, Kerala, India

*Corresponding Author:
Dean Martin C
Department of Commerce and Management studies
Govt College, Ollur, Kerala, India
Tel: 9497317748
Email: deanmartinc@gmail.com

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Abstract

In the ending years of the 1970s, the seven inner South Asian nations that included Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka agreed upon the creation of a trade bloc and to provide a platform for the people of South Asia to work together in a spirit of friendship, trust, and understanding. South Asian Association Regional Cooperation (SAARC) was founded by seven states in 1985; Afghanistan joined SAARC as its eighth member state in April 2007.

Keywords

Money Stock; Commercial Banks; Customs Union

Introduction

In the ending years of the 1970s, the seven inner South Asian nations that included Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka agreed upon the creation of a trade bloc and to provide a platform for the people of South Asia to work together in a spirit of friendship, trust, and understanding. South Asian Association Regional Cooperation (SAARC) was founded by seven states in 1985; Afghanistan joined SAARC as its eighth member state in April 2007. The SAARC Secretariat was established in Kathmandu on 16 January 1987 and was inaugurated by Late King Birendra Bir Bikram Shah of Nepal. SAFTA was envisaged primarily as the first step towards the transition to a South Asian Free Trade Area (SAFTA) leading subsequently towards a Customs Union, Common Market and the Economic Union. In 1995, the Sixteenth session of the Council of Ministers (New Delhi, 18–19 December 1995) agreed on the need to strive for the realisation of SAFTA and to this end an Inter-Governmental Expert Group (IGEG) was set up in 1996 to identify the necessary steps for progressing to a free trade area. One of the main obstacles is the huge difference in the financial and economic status of member countries [1].

The Indian Subcontinent is a region of South Asia, including the nations of India, Sri Lanka, Pakistan, Nepal, Bhutan, the Maldives and Bangladesh. India is South Asia’s major contributor to the world economy, the other nations of the region, notably Pakistan and Bangladesh, also rank among the world’s most populous countries. All of the nations of South Asia share a commonality of formerly being British colonies. The Sri Lanka is now getting better, has a high literacy rate and has many positive social indicators. Bangladesh, on the other hand, has a declining fertility rate, but the vast majority of its citizens are very poor and the country faces periodic natural disasters that could worsen in the future due to climate change. Pakistan faces geopolitical pressures and has the internal hurdle of having a military-dominated government.

This geographical zone is the most populated in the world and has the highest population density; but in terms of economy, it is still emerging with all the constraints that such an economy entails for companies wishing to export or set up operations in South Asian countries [2].

Significance of The Study

The South Asian Association of Regional Cooperation (SAARC) marked its Silver Jubilee in 2010. The SAARC's charter, which was signed by Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka in 1985, has many similarities to the founding charters of similar regional associations signed elsewhere. While other regional associations have made substantial progress, SAARC has yet to produce notable results. In the context of growing global economic interdependence, it is of interest to assess how far economic growth in each of the SAARC economies has influenced growth in other member countries. This paper investigates macroeconomic differences in the South Asian region with a view to evaluating its readiness to forge ahead with its integration efforts. India, Pakistan and Bangladesh have come a long way since the British left them. Of the three nations, India has seen by far the most dramatic growth. In terms of economic resources, India did much better than Pakistan out of partition. It is now one of the world's fastest developing economies with average growth rates of 8% over the past three years. It is also emerging as a serious global player in information technology, telecommunications and pharmaceuticals.

Statement of The Problem

The poverty is still widespread in all the nations, which feature in the top 10 most populous in the world. Almost half the population in Bangladesh lives on less than $1 a day and Pakistan's social indicators still lag behind countries with comparable per capita incomes. The economy of Bhutan, one of the world’s smallest and least developed countries, is based on agriculture and forestry, which provide the main livelihood for more than 60% of the population. The economy is closely aligned with India's through strong trade and monetary links and dependence on India's financial assistance. For Nepal, it's probably no surprise that neighbour India is far and away the biggest economic partner, accounting for 53.7% of all exports and also the biggest importer is also India at 50% [3]. The findings of the earlier studies reveal that India has been influencing economic growth in the region, as its output variability has been affecting outputs in other member countries. If SAARC has to become successful as a regional bloc, India is the biggest gainer from trade and investment.

Objectives of The Study

1. To analyse the trends and patterns of the growth with the selected variables related to the sources and components of money stock and Sectoral Deployment of Scheduled Commercial Banks of Selected Asian Neighbouring Countries and India

2. To evaluate the proportional leaders of the combined sources and components of money stock and Sectoral Deployment of Scheduled Commercial Banks of Selected Asian Neighbouring Countries and India

3. To assess the central tendencies of the selected Asian countries’ components of money stock and Sectoral Deployment of Scheduled Commercial Banks.

Limitation of The Study

1. Avoided the countries like Sri Lanka and Afghanistan because of lack and irregular supply of data.

2. Heavily depended on the secondary data since primary data is almost impossible to collect.

Analysis and Interpretations

Sources of Money Stock

Net bank credit to government: Net bank credit to government is the net amount of bank credit issued to the government by the respective central bank of the country after adjusting the money issued and settled by the central bank with the government.

In the case of Sources of money stock-Net bank credit to Government of selected Asian countries are concerned, Bangladesh shows maximum percentage of increase (95%) followed by Pakistan (71%) and Bhutan (23%) [4]. At the same time, when we combine the Net bank credit to Government of the all the selected countries, India has maximum percentage (84% approx.) followed by Pakistan (13.5% approx.) and Bangladesh (2.2% approx.) (Table 1). The country India has 487479 USD Million average Net bank credits to Government followed by Pakistan 63,483 USD Million and Bangladesh 11,768 USD million.

Table 1: Sources of Money stock-Net Bank credit to Government.

Years Bangladesh % Bhutan % India % Nepal % Pakistan % Overall
2012 6584.44 100 24.69 100 463981.8 100 1691.34 100 45836.7 100 518119
O% 1.27   0.00   89.55   0.33   8.85   100.00
2013 10679.7 162 21.35 86 498078 107 1731.05 102 59026.8 129 569537
O% 1.88   0.00   87.45   0.30   10.36   100.00
2014 14645 222 39.37 159 506635.6 109 1447 86 62841.3 137 585608
O% 2.50   0.01   86.51   0.25   10.73   100.00
2015 14065.9 214 35.13 142 480485 104 1409 83 71376.9 156 567372
O% 2.48   0.01   84.69   0.25   12.58   100.00
2016 12863 195 30.25 123 488216.8 105 1746 103 78331.2 171 581187
O% 2.21   0.01   84.00   0.30   13.48   100.00
Std Dev 3271   7   16438   163   12394    
Average 11768   30   487479   1605   63483    
Source: SAARC official website            

Net Foreign Exchange Assets of the Central Bank

Foreign-exchange reserves (also called forex reserves or FX reserves) is money or other assets held by a central bank or other monetary authority so that it can pay if need be its liabilities, such as the currency issued by the central bank, as well as the various bank reserves deposited with the central bank by the government and other financial institutions. Reserves are held in one or more reserve currency, mostly the United States dollar and to a lesser extent the EU's euro, the British pound sterling, and the Japanese yen [5]. In a strict sense, foreign-exchange reserves should only include foreign banknotes, foreign bank deposits, foreign treasury bills, and short and long-term foreign government securities. However, the term in popular usage commonly also adds gold reserves, special drawing rights (SDRs), and International Monetary Fund (IMF) reserve positions (Table 2). This broader figure is more readily available, but it is more accurately termed official international reserves or international reserves. Official international reserves assets allow a central bank to purchase the domestic currency, which is considered a liability for the central bank (since it prints the money or currency as IOUs) [6]. Thus, the quantity of foreign exchange reserves can change as a central bank implements monetary policy, but this dynamic should be analyzed generally in the context of the level of capital mobility, the exchange rate regime and other factors.

Table 2: Sources of Money stock-Net foreign Exchange of the Central Bank.

Years Bangladesh % Bhutan % India % Pakistan % Overall
2012 8424.6 100 783.8 100 287762.9 100 7458.43 100 304430
O% 2.77   0.26   94.53   2.45   100
2013 13275.8 158 706.87 90 286464.3 100 3802.14 51 304249
O% 4.36   0.23   94.15   1.25   100
2014 19000 226 885.32 113 299922 104 7639.1 102 327446
O% 5.80   0.27   91.59   2.33   100
2015 22799.3 271 876.53 112 339871 118 9561.84 128 373109
O% 6.11   0.23   91.09   2.56   100
2016 27867.7 331 871.72 111 359320.3 125 12672.8 170 400733
O% 6.95   0.22   89.67   3.16   100
Std Dev 7665   78   33037   3243    
Average 18273   825   314668   8227    
Source: SAARC official website        

In the case of Sources of money stock - Net foreign Exchange of the central bank of selected Asian countries are concerned, Bangladesh shows maximum percentage of increase (231%) followed by Pakistan (70%) and India (25%). At the same time, when we combine the Net foreign Exchange of the central bank of the all the selected countries, India has maximum percentage (90% approx.) followed by Bangladesh (7% approx.) and Pakistan (3% approx.). The country India has 3,14,668 USD Million average Net foreign Exchange of the central bank followed by Bangladesh 18,273 USD Million and Pakistan 8,227 USD million (Table 3). The proportion of Bhutan is very less i.e., 0.25%. The details of Nepal are excluded in the list because of Lack of data.

Table 3: Components of Money stock-Currency in Circulation.

Years Bangladesh % Bhutan % India % Nepal % Pakistan % Overall
2012 7931.62 100 147.71 100 208606.4 100 2104.32 100 18682.7 100 237473
O% 3.34   0.06   87.84   0.89   7.87   100.00
2013 9691.69 122 119.59 81 218972.4 105 2226.96 106 19950.2 107 250961
O% 3.86   0.05   87.25   0.89   7.95   100.00
2014 11011.9 139 96.96 66 216485.6 104 2316 110 21087.6 283 250998
O% 4.39   0.04   86.25   0.92   8.40   100.00
2015 12614.6 159 93.48 63 231393.8 111 2245 107 25146.6 135 271494
O% 4.65   0.03   85.23   0.83   9.26   100.00
2016 16875.7 213 95.83 65 250775 120 3068 146 31881.6 171 302696
O% 5.58   0.03   82.85   1.01   10.53   100.00
Std Dev 3402   23   16451   386   5350    
Average 11625   111   225247   2392   23350    
Source: SAARC official website            

Components of Money Stock

Currency in circulation

In monetary economics, circulation is the continuing use of individual units of a currency for transactions. Thus currency in circulation is the total value of currency (coins and paper currency) that has ever been issued minus the amount that has been removed from the economy by the central bank. More broadly, money in circulation is the total money supply of a country, which can be defined in various ways always including currency and also including some types of bank deposits. Standard money is the basic currency circulating within a monetary system. It has legal recognition for prices and settlement.

The currency circulation of selected Asian countries of selected Asian countries are concerned, Bangladesh shows maximum percentage of increase (113%) followed by Pakistan (71%) and Nepal (46%). At the same time, when we combine the currency circulation of the all the selected countries, India has maximum percentage (83% approx.) followed by Pakistan (10% approx.) and Bangladesh (5.50% approx.). The country India has 2,25,247 USD Million average currency circulation followed by Pakistan 23,350 USD Million and Bangladesh 11,625 USD million.

Bankers Deposits with the Central Bank

Bank reserves are the currency deposits that are not lent out to a bank's clients. A small fraction of the total deposits is held internally by the bank in cash vaults or deposited with the Central bank. Minimum reserve requirements are established by central banks in order to ensure that the financial institutions will be able to provide clients with cash upon request [7]. Even when there are no reserve requirements, banks often opt to hold some reserves called desired reserves against unexpected events such as unusually large net withdrawals by customers.

In the case of bankers deposits with the central bank of selected Asian countries are concerned, Bangladesh shows maximum percentage of increase (93%) followed by India (9%) and Nepal (6%). At the same time, when we combine the banker’s deposits with the central bank of the all the selected countries, India has maximum percentage (85% approx.) followed by Bangladesh (8.5% approx.) and Pakistan (4% approx.). The country India has 70,027 USD Million average bankers’ deposits with the central bank followed by Bangladesh 5,698 USD Million and Pakistan 4,451 USD million (Table 4).

Table 4: Components of Money Stock-Bankers Deposits with the Central Bank.

Years Bangladesh % Bhutan % India % Nepal % Pakistan % Overall
2012 3991.97 100 263.11 100 69642.6 100 1357.99 100 4429.59 100 79685
O% 5.01   0.33   87.40   1.70   5.56   100.00
2013 4732.34 119 186.96 71 58958.5 85 1338.51 99 4896.56 111 70113
O% 6.75   0.27   84.09   1.91   6.98   100.00
2014 5667.62 142 302.74 115 71498.2 103 1590 117 5144.86 116 84203
O% 6.73   0.36   84.91   1.89   6.11   100.00
2015 6405.2 160 301.64 115 74381.7 107 1901 140 4061.55 92 87051
O% 7.36   0.35   85.45   2.18   4.67   100.00
2016 7691.2 193 272.62 104 75652.7 109 1443 106 3723.24 84 88783
O% 8.66   0.31   85.21   1.63   4.19   100.00
Std Dev 1442   47   6623   232   583    
Average 5698   265   70027   1526   4451    
Source: SAARC official website            

Scheduled Commercial Banks-Select Aggregates

Demand deposits: Demand deposits, bank money are funds held in demand deposit accounts in commercial banks (Tables 5 and 6). These account balances are usually considered money and form the greater part of the narrowly defined money supply of a country. Demand deposits are usually considered part of the narrowly defined money supply, as they can be used, via checks and drafts, as a means of payment for goods and services and to settle debts. The money supply of a country is usually held to consist of currency plus demand deposits [8]. In most countries, demand deposits account for a majority of the money supply. During times of financial crisis, bank customers will withdraw their funds in cash, leading to a drop in demand deposits and a shrinking of the money supply. Economists have speculated that this effect contributed to the severity of the Great Depression.

Table 5: Scheduled Commercial Banks - Demand Deposits.

Years Bangladesh % Bhutan % India % Nepal % Pakistan % Overall
2012 6240.58 100 515.66 100 122230.2 100 1112.10 100 32512 100 162611
O% 3.84   0.32   75.17   0.68   19.99   100.00
2013 7166.84 115 508.68 99 121770 100 1140.47 103 37933 117 168519
O% 4.25   0.30   72.26   0.68   22.51   100.00
2014 8288.59 133 585.38 114 118789.3 97 1197 108 46156 142 175016
O% 4.74   0.33   67.87   0.68   26.37   100.00
2015 9302.62 149 553.01 107 126860.4 104 1296 116 50847.2 156 188859
O% 4.93   0.29   67.17   0.69   26.92   100.00
2016 11448.9 183 549.41 107 134020.4 110 1640 148 NA   147659
O% 7.75   0.37   90.76   1.11       100.00
Std Dev 2017   31   5940   215   8206    
Average 8490   542   124734   1277   41862    
Source: SAARC official website            

Table 6: Scheduled Commercial Banks - Time Deposits.

Years Bangladesh % Bhutan % India % Nepal % Pakistan % Overall
2012 49790.8 100 384.07 100 1032790 100 9665.83 100 34396 100 1127027
O% 4.42   0.03   91.64   0.86   3.05   100.00
2013 61707.9 124 405.31 106 1119366 108 10602.70 110 35107 102 1227189
O% 5.03   0.03   91.21   0.86   2.86   100.00
2014 72005.5 145 371.39 97 1163338 113 11478 119 36492 106 1283685
O% 5.61   0.03   90.62   0.89   2.84   100.00
2015 80555.2 162 357.08 93 1236485 120 12327 128 40264.5 117 1369988
O% 5.88   0.03   90.26   0.90   2.94   100.00
2016 89871.7 180 449.83 117 1272113 123 14788 153 NA   1377223
O% 6.53   0.03   92.37   1.07       100.00
Std Dev 15688   36   95063   1955   16508    
Average 70786   394   1164818   11772   36565    
Source: SAARC official website            

In the case of Scheduled commercial banks - Demand Deposits of selected Asian countries are concerned, Bangladesh shows maximum percentage of increase (83%) followed by Pakistan (56%) and Nepal (48%). At the same time, when we combine the banker’s deposits with the central bank of the all the selected countries, India has maximum percentage (90% approx.) followed by Pakistan (27% approx.) and Bangladesh (8% approx.). The country India has 1,24,734 USD Million average Scheduled commercial banks - Demand Deposits followed by Pakistan 41,862 USD Million and Bangladesh 8,490 USD million.

Time Deposits

A time deposit or term deposit (also known as a certificate of deposit in the United States), is a deposit with a specified period of maturity and earns interest. It is a money deposit at a banking institution that cannot be withdrawn for a specific term or period of time. When the term is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. In its strict sense, certificate deposit is different from that of time deposit in terms of its negotiability: CDs are negotiable and can be rediscounted when the holder needs some liquidity, while time deposits must be kept until maturity.

The Scheduled commercial banks-time Deposits of selected Asian countries of selected Asian countries are concerned, Bangladesh shows maximum percentage of increase (80%) followed by Nepal (53%) and India (23%). At the same time, when we combine the Scheduled commercial banks-time Deposits of the all the selected countries, India has maximum percentage (92% approx.) followed by Bangladesh (6.50% approx.) and Pakistan (3% approx.) The country India has 11,64,818 USD Million average Scheduled commercial banks-time Deposits followed by Bangladesh 70,786 USD million and Pakistan 36,565 USD million.

Liabilities to the Banks

A liability is a Bank’s financial debt or obligations that arise during the course of its operations (Table 7). Liabilities are settled over time through the transfer of economic benefits.

Table 7: Scheduled Commercial Banks - Liabilities to the Banks.

Years Bangladesh % Bhutan % India % Nepal % Pakistan % Overall
2012 48410.7 100 153.03 100 23909.1 100 12990.10 100 896 100 86359
O% 56.06   0.18   27.69   15.04   1.04   100.00
2013 57504.7 119 77.22 50 24471.8 102 14130.80 109 2377 265 98562
O% 58.34   0.08   24.83   14.34   2.41   100.00
2014 67289 139 100.56 66 20996.3 88 14932 115 3016 337 106334
O% 63.28   0.09   19.75   14.04   2.84   100.00
2015 84194.9 174 146.21 96 24948.5 104 17340 133 2413.51 269 129043
O% 65.25   0.11   19.33   13.44   1.87   100.00
2016 116024.7 240 125.55 82 33923.7 142 20062 154 NA   170136
O% 68.20   0.07   19.94   11.79       100.00
Std Dev 26644   32   4874   2825   902    
Average 74685   121   25650   15891   2176    
Source: SAARC official website            

The Scheduled commercial banks-Liabilities to the banks of selected Asian countries of selected Asian countries are concerned, Pakistan shows maximum percentage of increase (169%) followed by Bangladesh (140%) and Nepal (54%). At the same time, when we combine the Scheduled commercial banks - Liabilities to the banks of the all the selected countries, Bangladesh has maximum percentage (68% approx.) followed by India (20% approx.) and Nepal (12% approx.) [9]. The country Bangladesh has 74,685 USD Million average Scheduled commercial banks-Liabilities to the banks followed by India 25,650 USD million and Nepal 15,891 USD million

Investment in Govt securities

A government security is a bond or other type of debt obligation that is issued by a government with a promise of repayment upon the security's maturity date (Table 8). Government securities are usually considered low-risk investments because they are backed by the taxing power of a government. Government securities are usually issued for two different reasons. The primary reason that most government securities are issued is to raise funds for government expenditures.

Table 8: Scheduled Commercial Banks - Investment in Govt securities.

Years Bangladesh % Bhutan % India % Nepal % Pakistan % Overall
2012 10165.4 100 23.25 100 339135.6 100 1691.34 100 25517 100 376533
O% 2.70   0.01   90.07   0.45   6.78   100.00
2013 15534.1 153 20.97 90 368391 109 1731.05 102 33619 132 419296
O% 3.70   0.01   87.86   0.41   8.02   100.00
2014 19235.5 189 19.21 83 367920.4 108 1447 86 37232 146 425854
O% 4.52   0.00   86.40   0.34   8.74   100.00
2015 19589.4 193 7.99 34 397782.3 117 1409 83 50934.7 200 469723
O% 4.17   0.00   84.68   0.30   10.84   100.00
2016 19601.4 193 48.98 211 395570.4 117 1658 98 NA   416879
O% 4.70   0.01   94.89   0.40       100.00
Std Dev 4098   15   24055   148   10605    
Average 16825   24   373760   1587   36826    
Source: SAARC official website            

The Scheduled commercial banks-Investment in Government securities of selected Asian countries of selected Asian countries are concerned, Bhutan shows maximum percentage of increase (111%) followed by Pakistan (100%) and Bangladesh (93%). At the same time, when we combine the Scheduled commercial banks - Investment in Government securities of the all the selected countries, India has maximum percentage (95% approx.) followed by Pakistan (11% approx.) and Bangladesh (5% approx.) The country India has 373760 USD Million average Scheduled commercial banks - Investment in Government securities followed by Pakistan 36,826 USD million and Bangladesh 16,825 USD million.

Bank Credit

Bank credit is the aggregate amount of credit available to a person or business from a banking institution. It is the total amount of funds financial institutions provide to an individual or business (Table 9). A business or individual's bank credit depends on the borrower's ability to repay and the total amount of credit available in the banking institution. Many businesses need business funding to pay start-up costs, to pay for goods and services or supplement cash flow.

Table 9: Scheduled Commercial Banks - Bank Credit.

Years Bangladesh % Bhutan % India % Nepal % Pakistan % Overall
2012 61960.9 100 788.85 100 901456.6 100 7571.42 100 39471 100 1011249
O% 6.13   0.08   89.14   0.75   3.90   100.00
2013 74974.6 121 920.57 117 967186.3 107 8481.53 112 38943 99 1090506
O% 6.88   0.08   88.69   0.78   3.57   100.00
2014 86328.3 139 934.34 118 997357 111 9015 119 43507 110 1137142
O% 7.59   0.08   87.71   0.79   3.83   100.00
2015 95561.7 154 913.19 116 1044310 116 10684 141 45472.3 115 1196941
O% 7.98   0.08   87.25   0.89   3.80   100.00
2016 107054.1 173 972.62 123 1092914 121 13019 172 NA   1213959
O% 8.82   0.08   90.03   1.07       100.00
Std Dev 17542   69   73125   2148   3161    
Average 85176   906   1000645   9754   41848    

The Scheduled commercial banks-Bank credit of selected Asian countries are concerned, Bangladesh shows maximum percentage of increase (73%) followed by Nepal (72%) and Bhutan (23%). At the same time, when we combine the Scheduled commercial banks - Bank credit of the all the selected countries, India has maximum percentage (90% approx.) followed by and Bangladesh (9% approx.) and Pakistan (4% approx.) The country India has 10,00,645 USD Million average Scheduled commercial banks - Bank credit followed by Bangladesh 85,176 USD million and Pakistan 41,848 USD million.

Assets with Banks

An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. Assets are reported on a company's balance sheet, and they are bought or created to increase the value of a firm or benefit the firm's operations (Table 10). Bank assets are the money and property owned by a bank, and the money that is owed to it.

Table 10: Scheduled Commercial Banks - Assets with Banks.

Years Bangladesh % Bhutan % India % Nepal % Pakistan % Overall
2012 48587.6 100 1192.48 100 34775.6 100 12990.10 100 1227 100 98773
O% 49.19   1.21   35.21   13.15   1.24   100.00
2013 58168 120 1186.14 99 40439.5 116 14130.80 109 1228 100 115152
O% 50.51   1.03   35.12   12.27   1.07   100.00
2014 67612.3 139 1305.13 109 32454.2 93 14932 115 1649 134 117953
O% 57.32   1.11   27.51   12.66   1.40   100.00
2015 84776.3 174 1310.08 110 35431.8 102 17340 133 3383.54 276 142241
O% 59.60   0.92   24.91   12.19   2.38   100.00
2016 116655.3 240 159.76 13 39256.4 113 20062 154 NA   176133
O% 66.23   0.09   22.29   11.39       100.00
Std Dev 26768   490   3301   2825   1027    
Average 75160   1031   36472   15891   1872    

The Scheduled commercial banks-Assets with banks of selected Asian countries are concerned, Pakistan shows maximum percentage of increase (176%) followed by Bangladesh (140%) and Nepal (54%) (Table 11). At the same time, when we combine the Scheduled commercial banks - Assets with banks of the all the selected countries, Bangladesh has maximum percentage (66% approx.) followed by and India (22% approx.) and Nepal (11% approx.) The country Bangladesh has 75,160 USD Million average Scheduled commercial banks - Assets with banks followed by India 36,472 USD million and Nepal 15,891 USD million.

Table 11: Sectoral Deployment of Bank credit by Commercial Sectors.

Years Bangladesh % Bhutan % India % Nepal % Pakistan % Overall
2012 44610.5 100 887.43 100 378679.6 100 1595.28 100 37354.1 100 463127
O% 9.63   0.19   81.77   0.34   8.07   100.00
2013 51669.5 116 998.45 113 410040 108 1837.15 115 35795.4 96 500341
O% 10.33   0.20   81.95   0.37   7.15   100.00
2014 57285.6 128 1007.41 114 418717.4 111 203 13 41219.6 110 518433
O% 11.05   0.19   80.77   0.04   7.95   100.00
2015 65119.9 146 990.62 112 424603.5 112 2534 159 43058.4 115 536306
O% 12.14   0.18   79.17   0.47   8.03   100.00
2016 NA   1083.06 122 411662.5 109 3100 194 47210.1 126 463056
O%     0.23   88.90   0.67   10.20   100.00
Std Dev 8684   70   17784   1096   4561    
Average 54671   993   408741   1854   40928    

Sectorial Deployment of bank credit by Major Sectors

Bank credit to commercial sector

A pre-approved amount of money issued by a bank to a company that can be accessed by the borrowing company at any time to help meet various financial obligations. Commercial credit is commonly used to fund common day-to-day operations and is often paid back once funds become available.

The Sectorial Deployment of bank credit-commercial sector of selected Asian countries are concerned, Nepal shows maximum percentage of increase (94%) followed by Bangladesh (46%) and Pakistan (26%). At the same time, when we combine the Sectorial Deployment of bank credit-Commercial sector of the all the selected countries, India has maximum percentage (89% approx.) followed by and Bangladesh (12% approx.) and Pakistan (10% approx.) The country India has 4,08,741 USD Million average Sectorial Deployment of bank credit - Commercial sector followed by Bangladesh 54,671 USD million and Pakistan 40,928 USD million (Table 12).

Table 12: Sectoral Deployment of Bank credit - Agriculture and Allied Activities.

Years Bangladesh % Bhutan % India % Nepal % Pakistan % Overall
2012 2558.08 100 901.93 100 106846.4 100 289 100 2101.76 100 112697
O% 2.27   0.80   94.81   0.26   1.86   100.00
2013 2953.72 115 1020.65 113 108461.4 102 358.49 124 2244.29 107 115039
O% 2.57   0.89   94.28   0.31   1.95   100.00
2014 3555.8 139 1035.01 115 110812.2 104 398 138 2561.67 122 118363
O% 3.00   0.87   93.62   0.34   2.16   100.00
2015 3784.85 148 1027.82 114 122363 115 501 174 2805.6 133 130483
O% 2.90   0.79   93.78   0.38   2.15   100.00
2016 NA   58.02 6 133107.7 125 572.71 198 2812.26 134 136551
O%     0.04   97.48   0.42   2.06   100.00
Std Dev 560   423   11182   113   323    
Average 3213   809   116318   424   2505    

Bank credit to Agriculture and Allied Activities

Priority Sector refers to those sectors of the economy which may not get timely and adequate credit in the absence of this special dispensation. Priority Sector Lending is an important role given by the banks for providing a specified portion of the bank lending to few specific sectors like agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections. Direct finance to agriculture shall include short, medium and long term loans given for agriculture and allied activities directly to individual farmers, Self-Help Groups (SHGs) or Joint Liability Groups (JLGs) of individual farmers. The Sectorial Deployment of bank credit-Agricultural and allied activities of selected Asian countries are concerned, Nepal shows maximum percentage of increase (98%) followed by Bangladesh (48%) and Pakistan (34%). At the same time, when we combine the Sectorial Deployment of bank credit of the all the selected countries, India has maximum percentage (97% approx.) followed by and Pakistan (2% approx.) and Nepal (0.4% approx.). The country India has 1,16,318 USD Million average Sectorial Deployment of bank credit-Agricultural and allied activities followed by Bangladesh 3,213 USD million and Pakistan 2,505 USD million.

Conclusion

In the analysis of the trends and patterns of the growth with the selected variables related to the sources and components of money stock and Sectoral Deployment of Scheduled Commercial Banks of Selected Asian Countries, Bangladesh showing massive growth in (a) Net bank credit to Government (b) Net foreign exchange assets of the central bank (c) Currency in circulation (d) Bankers deposits with the central bank (e) Demand deposits (f) Time deposits (g) Bank credit but at the same time country Pakistan shows growth with respective of (a) Liabilities to the Banks (b) Assets with banks. The variable (a) Investment in Govt securities Bhutan country shows better growth and another country Nepal shows massive growth in the (a) Deployment towards commercial sector and (b) Deployment towards agriculture and allied activities. In the evaluation of the proportional leaders of the combined sources and components of money stock and Sectoral Deployment of Scheduled Commercial Banks of Selected Asian Countries, ten out of the twelve variables India have massive difference as well as leading the scene except with the liabilities to the banks and assets with the banks (Bangladesh is leading in both cases).

In the assessment of the central tendencies of the selected Asian countries’ components of money stock and Sectoral Deployment of Scheduled Commercial Banks, India is having very higher central tendencies except with variable liabilities to the banks and assets with the banks. (Bangladesh having higher averages in both cases).

India is the great country in the majority of the variables and has huge differences while compared to other four selected countries at the same time country Bangladesh is growing fast while compared to their previous low levels and even to their more aged neighbouring country Pakistan.

References

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