Volume 3, Issue 3, June 2015, Page: 285-293
Determinants of Liquidation of Government Securities Held by Banks in Uganda
Kenneth Alpha Egesa, Department of Statistics, Bank of Uganda, Kampala, Uganda
Bruno Max Ocaya, Department of Statistics and Actuarial Sciences, College of Business and Management Sciences, Makerere University, Kampala, Uganda
Leonard Kiboijana Atuhaire, Department of Statistics and Actuarial Sciences, College of Business and Management Sciences, Makerere University, Kampala, Uganda
Yeko Mwanga, Department of Statistics and Actuarial Sciences, College of Business and Management Sciences, Makerere University, Kampala, Uganda
Tom Nyanzi Makumbi, Department of Statistics and Actuarial Sciences, College of Business and Management Sciences, Makerere University, Kampala, Uganda
Xavier Mugisha, Department of Statistics and Actuarial Sciences, College of Business and Management Sciences, Makerere University, Kampala, Uganda
Received: May 7, 2015;       Accepted: May 17, 2015;       Published: May 27, 2015
DOI: 10.11648/j.ijefm.20150303.25      View  3158      Downloads  88
Abstract
This study analyzed the determinants of bank liquidation of government securities using panel logistic regression. The analysis showed that the liquidation of government securities by banks was motivated by reserve needs although some evidence of reluctance to borrow from the Central Bank was also noted. The main policy implications of the study include the need to minimize liquidity shortages in the interbank market and development of the secondary market as measures that can minimize liquidation of securities.
Keywords
Commercial Banks, Liquidation of Government Securities, Panel Logistic Regression
To cite this article
Kenneth Alpha Egesa, Bruno Max Ocaya, Leonard Kiboijana Atuhaire, Yeko Mwanga, Tom Nyanzi Makumbi, Xavier Mugisha, Determinants of Liquidation of Government Securities Held by Banks in Uganda, International Journal of Economics, Finance and Management Sciences. Vol. 3, No. 3, 2015, pp. 285-293. doi: 10.11648/j.ijefm.20150303.25
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