The Influence of Banking Activities on Effectiveness of Developing Countries' Economies

Bobrikova J. The Influence of Banking Activities on Effectiveness of Developing Countries' Economies ABSTRACT Today, there are many factors that can be considered as determinants of economic growth. One of these is the financial system. The problem of identifying these determinants is more relevant than ever in connection with the global economic downturn. The purpose of the final qualifying work is to identify the dependence of banking activities on the overall efficiency of the economy of countries with developing economies. The practical part of this work includes econometric analysis, which allows to identify the factors common to countries with developing economies. Data for the BRICS group of countries were used as a sample. The explanatory variables are: savings mobilization, domestic lending to the private sector, the ratio of loans to deposits, net interest margin, liquid liabilities, foreign direct investment, non – performing loans, Bank concentration, and dependent-GDP, which allows you to estimate economic growth. It is worth noting that the author put forward three hypotheses, which were partially refuted during the study. Keywords: banking sector, bank credit, bank deposits, economic growth, savings mobilization, FDI, loans, deposits, net interest margin, liquid liabilities, NPL, concentration of Bank assets.