An Improvement on An Interest Rate Commission Agent Banking System (AIRCABS MODEL)

Authors

  • Ameha Tefera Tessema Bank
  • Jan Walters Kruger

Abstract

This paper sought to test An interest rate commission agent banking model's viability and reliability. An interest rate commission agent banking system (AIRCABS) increased the investor loan funding agent bank's profitability and sustainability by shifting credit risk and liquidity crunch to investors and entrepreneurs. The bank increases stable deposit by applying discrete market deposit interest rate incentive into depositors' accounts and by letting depositors latter to shift to investor position having the bank as an agent to collect proportionate credit price instead of deposit interest rate on the portion of the fund the bank has already invested. Therefore, an interest rate commission agent bank found viable and reliable.

Keywords: agent bank model, agent bank's profitability and sustainability, stable deposit 

JEL Classfications: E21,E22, E40, G01,G21, G32

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Author Biography

Ameha Tefera Tessema, Bank

Doctor of business leadership candidateschool of business leadershipuniversity of south africa 

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Published

2017-09-05

How to Cite

Tessema, A. T., & Kruger, J. W. (2017). An Improvement on An Interest Rate Commission Agent Banking System (AIRCABS MODEL). International Journal of Economics and Financial Issues, 7(4), 685–705. Retrieved from http://econjournals.com/index.php/ijefi/article/view/5039

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