The Analysis of Bank Deposits through Spatial Modelling by Provinces

Abstract

One of the most important financial resources of banking sector is deposit value. Banks collect money from public and transfer it to economy by giving credits to firms and establishing companies. It is widely acknowledged that bank deposits are concentrated in particular provinces of Turkey. In this context, it has become important to determine the impacts of changes of deposits, which provides liquidity for economy, on provincial economies. The aim of this study is to analyse variables that are considered to explain total bank deposits and to identify spatial interaction on deposit changes on the provincial bases. The existence of spatial effect by provinces in Turkey was identified in terms of total bank deposits. Accordingly, it was determined that the provinces of Istanbul, Ankara and Mardin were different from other provinces.