Open Access Journal Article

COVID-19 and SMEs deposits with commercial banks: evidence from African economies

by Abdulazeez Y.H. Saif-Alyousfi a,* orcid
a
Department of Finance, College of Business Administration, University of Hafr Al-Batin, Hafr AlBatin, Saudi Arabia
*
Author to whom correspondence should be addressed.
FEL  2024 3(1):19; https://doi.org/10.58567/fel03010006
Received: 19 December 2023 / Accepted: 2 January 2024 / Published Online: 8 January 2024
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Abstract

This paper examines the impact of COVID-19 on Small and medium-sized enterprises (SMEs) deposits across 13 African nations from 2016 to 2022, using a seven-year dataset and Ordinary Least Squares estimator. Notably, it uncovers a significant positive link between the pandemic and SMEs deposits, indicating heightened reserves amidst economic uncertainty, potentially driven by risk mitigation or government support. Associations between gross domestic product (GDP), inflation, unemployment, foreign direct investment (FDI), exchange rates, and SMEs deposits were evident, showcasing higher GDP aligning with increased deposits, while inflation and unemployment linked to reduced ones. FDI showed a positive influence, and exchange rate fluctuations notably affected SMEs deposits, especially for those in international trade. These findings emphasize policy reconsideration for crisis strategies supporting SMEs reserves during uncertainty and interventions addressing inflation, unemployment, and exchange rate risks. Future research exploring regional nuances and global comparisons could further enrich policymaking for resilient SMEs amid evolving economic landscapes.

Keywords: COVID-19; SMEs; Deposits; commercial banks; African economies;
Copyright: © 2024 by Saif-Alyousfi. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Saif-Alyousfi, A. Y. COVID-19 and SMEs deposits with commercial banks: evidence from African economies. Financial Economics Letters, 2024, 3, 19. https://doi.org/10.58567/fel03010006
AMA Style
Saif-Alyousfi A Y. COVID-19 and SMEs deposits with commercial banks: evidence from African economies. Financial Economics Letters; 2024, 3(1):19. https://doi.org/10.58567/fel03010006
Chicago/Turabian Style
Saif-Alyousfi, Abdulazeez Y. 2024. "COVID-19 and SMEs deposits with commercial banks: evidence from African economies" Financial Economics Letters 3, no.1:19. https://doi.org/10.58567/fel03010006
APA style
Saif-Alyousfi, A. Y. (2024). COVID-19 and SMEs deposits with commercial banks: evidence from African economies. Financial Economics Letters, 3(1), 19. https://doi.org/10.58567/fel03010006

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