5.1 Introduction Final chapter of the study represents the conclusion of the study based on the

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5.1 Introduction Final chapter of the study represents the conclusion of the study based on the analysis done for the obtained data and the overall summary of the study. Other than that chapter contains the recommendations based on the obtained results and also develops ideas and suggestions for the future researches regarding the relationship between economic growth and commercial bank lending. 5.2 Summary The study focused on to identified the relationship between economic growth and commercial bank lending in Sri Lankan context. That is the main objective of the study. Moreover this study analyzed the causality as a specific objective to facilitate prime objective of the study. Analysis of the study intends to identify the impact of…show more content…
According to the regression analysis results shows that bank lending rate (LDR) is not significant even 10% significant level. Therefore the model was redeveloped excluding that variable. According to result of the regression analysis identify the relationship of those five variables on economic growth can be calculated as follows. Table 5.1 Conclusion of Regression Result Variable Expected type of the Relationship Significant/ Insignificant Type of the Relationship Commercial bank lending Positive Significant Positive Gross domestic savings Negative Significant Positive Inflation rate Positive Significant Positive Volume of deposits Positive Significant Positive Deposit rate Positive Significant Positive Result of the study concluded that all variables in the model have explained more than 64% of the changes in economic growth and each determinant have the significant effect on Economic Growth in Sri Lanka. As per the result of most literatures regarding the relationship between economic growth and commercial bank lending has been identified by this study. Also it can be concluded that there are more significant variables should be included the model and they make positive effect on economic growth. 5.4 Recommendations Banking and financial sector is one of the main pillars of the development of an economy. Banking sector contribution for the
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