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Article
Publication date: 13 September 2023

Anamika Saharan, Akash Saharan, Krishan Kumar Pandey and T. Joji Rao

The low level of financial literacy among young adults is a pressing concern at both individual and country levels. Therefore, there is a dire need to understand the best-worst…

Abstract

Purpose

The low level of financial literacy among young adults is a pressing concern at both individual and country levels. Therefore, there is a dire need to understand the best-worst antecedents of financial literacy and how they influence each other.

Design/methodology/approach

A two-phased multicriteria decision-making (MCDM) technique consisting of best-worst method and interpretive structural modeling (BWM-ISM) was employed for pair-wise comparison, assigning weights, ranking and establishing the relationship among antecedents of financial literacy.

Findings

Results suggest that use of Internet (SF1), role of financial advisors (SF3) and education level of individuals (DS7) are top ranked antecedents, whereas masculinity/feminity, language and power distance in society are the least ranked antecedents of financial literacy. Findings will help both academicians and practitioners focus on the key factors and make efforts to increase financial literacy by minimizing resource usage.

Originality/value

The current study provides clarity among antecedents of financial literacy by following BWM-ISM approach for the first time in the financial literacy context.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2022-0746

Details

International Journal of Social Economics, vol. 51 no. 4
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 17 April 2018

Sulait Tumwine, Samuel Sejjaaka, Edward Bbaale and Nixon Kamukama

The purpose of this paper is to investigate the determinants of interest rate in emerging markets, focusing on banking financial institutions in Uganda.

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Abstract

Purpose

The purpose of this paper is to investigate the determinants of interest rate in emerging markets, focusing on banking financial institutions in Uganda.

Design/methodology/approach

Using the net interest margin model, interest rate was estimated by applying a panel random effects regression method on 24 banks, while controlling for bank-specific factors, industry and macroeconomic indicators. Data were drawn from annual reports provided by Bank of Uganda Depository Corporation survey from 2008 to 2016.

Findings

The results indicate that liquidity, equity capital, market power and reserve requirement have a positive effect on interest rate. The study further finds that operational efficiency, lending out ratio, concentration, public sector borrowing and private sector credit have a negative effect on interest rate. However, credit risk does not influence interest rate.

Research limitations/implications

Studied banks are grouped in one panel data set; future studies would focus on the differences in banks and establish how these differences affect interest rate. Future study would also focus on how the determinants of interest rate in Uganda are compared with those of other banks in other emerging market countries.

Practical implications

Bank managers need to take interest in equity mobilization because it is a reliable and cheaper source of funding bank operations. Banks should emphasize efficient operations to reduce on the cost of doing business. Government should utilize funds borrowed from banks in efficient ways to improve economic growth. The central bank should minimize the use of reserve requirement as a means of controlling money in circulation.

Originality/value

This is the first paper that uses annual report data from several banks and periods to investigate the determinants of interest rate in an emerging country.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 14 no. 3
Type: Research Article
ISSN: 2042-5961

Keywords

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