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What impact have interest rate reforms had on financial deepening in Botswana?

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Interest rate reforms in Botswana have shown varying impacts on financial deepening. While some studies suggest a positive relationship between interest rate reforms and financial deepening when using bank deposits to GDP as a proxy , others find the impact to be minimal when considering monetization and private sector credit to GDP ratios . Additionally, the entry of foreign banks and deregulation of interest rates aimed at increasing competition have not significantly reduced the high and rising costs of financial intermediation in Botswana . However, there is evidence of a positive link between private savings and real interest rates, indicating a favorable impact of financial liberalization on savings in the country . These findings collectively highlight the nuanced effects of interest rate reforms on financial deepening in Botswana.

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Journal Article•DOI Why is the cost of financial intermediation rising in Botswana Sylvanus Ikhide, Olalekan Yinusa - Show less +1 more 01 Jan 2012-Journal of Developing Areas 6 Citations	Interest rate reforms in Botswana aimed to reduce costs of financial intermediation by increasing competition, but factors like balance sheet, industry specifics, and macroeconomics have led to rising costs.
Journal Article•DOI Potential impact of financial reforms on savings in Botswana: An empirical analysis using a VECM approach Abdullahi D. Ahmed 01 Jan 2008-Journal of Developing Areas 17 Citations	Interest rate reforms in Botswana have positively influenced savings, as indicated by a rise in private savings and a positive relationship between savings and real interest rates, enhancing financial deepening.
Open access•Journal Article•DOI Public Financial Management Reforms in Botswana: A Review of Literature 01 Jun 2023-Research Journal of Finance and Accounting	Interest rate reforms in Botswana were not specifically addressed in the paper.
Open access•Journal Article•DOI The Role Of Interest Rate Reforms In Lesotho: An Empirical Investigation Nicholas M. Odhiambo 20 Jun 2011-Journal of Applied Business Research 1 Citations	Not addressed in the paper.
Journal Article•DOI Interest-Rate Reforms and Financial Deepening in Botswana: An Empirical Investigation Nicholas M. Odhiambo, Oludele Akinloye Akinboade - Show less +1 more 01 Feb 2009-Economic Notes 8 Citations	Interest-rate reforms in Botswana had a minimal positive impact on financial deepening, varying based on the proxy used. Dependency ratio negatively affected financial deepening.

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